In the face of constantly evolving markets, dynamic technological changes and intense competition for top talent, an organization’s ability to ensure continuity of leadership and fill key positions with internal candidates is becoming not only a strategic advantage, but even a prerequisite for survival and long-term success. Succession programs, or consciously designed and systematically implemented processes for identifying, developing and preparing future leaders and professionals for key roles, are the foundation for building a resilient, adaptive and future-ready organization. This is not just a reactive measure for unexpected vacancies, but a proactive investment in a company’s most valuable asset – its people.
The purpose of this article is to discuss in depth the concept of succession programs, their strategic importance, the key stages of design and implementation, and the benefits they bring to both the organization and its employees. We will delve into how to effectively identify talent, create personalized development paths, and how to integrate succession planning into an overall human resource management strategy. EITT, as an experienced partner in shaping HR strategies and leadership development, is eager to share its expertise, demonstrating how professionally managed succession programs can become a driver of sustainable growth, innovation and stability for your company.
Succession planning as a pillar of stability and growth: definition, strategic goals, and distinction from succession planning
Succession planning is a strategic and long-term process that focuses on identifying key roles in the organization (both leadership and specialized roles critical to business continuity) and systematically preparing internal candidates to fill them in the future. This is a proactive approach to ensure that the company has an appropriately qualified workforce ready to meet current and future business challenges. The key here is to understand that succession planning is much more than replacement planning. The latter is more reactive and short-term in nature, focusing on filling a vacancy quickly, often without a deeper analysis of the candidate’s long-term potential. Succession planning, on the other hand, is a developmental process focused on building a “bench strength” – a pool of talent that is systematically prepared to take on increasingly responsible roles.
The strategic objectives of succession planning are multidimensional and closely linked to the organization’s overarching business goals. First and foremost, it ensures business continuity and minimizes the risk of disruption associated with the unexpected departure of key employees or leaders. Having prepared internal successors allows for smooth transitions and maintains operational stability. Second, succession planning is a powerful tool for talent development and retention. Employees, especially high-potential (HiPo) ones, seeing clear prospects for growth and promotion within the company, are more engaged, motivated and loyal. Third, it supports the implementation of the business strategy by ensuring that the organization has leaders with the right competencies to implement that strategy and lead the company in the desired direction. Fourth, promoting internal candidates is often more cost-effective than recruiting externally for high-level positions, and there is less risk of cultural mismatch. Finally, systematic succession planning contributes to building an organizational culture based on development, appreciation of potential and promotion of internal talent, which strengthens the employer brand.
Architecting a successful succession program: from identifying key roles to building a talent pool ready for future challenges
Creating an effective succession program is a complex undertaking that requires a strategic approach, top management commitment and careful planning of the various stages. The process must be deeply embedded in the company’s business strategy and tailored to its unique culture and specific operations. The first step is to closely align succession planning with the organization’s long-term strategy and to conduct a strategic workforce planning analysis. Questions need to be answered: what competencies and roles will be key to the company in 3, 5, 10 years? What changes in the market or technology will affect the requirements for leaders?
Next, it is necessary to identify precisely the key positions (key positions) – those that have the greatest impact on the implementation of the company’s strategy, business continuity or competitive advantage. These are not always just top management positions; they can also be roles of unique specialists or middle managers of critical importance. For each of these positions, detailed success profiles or competency profiles should be defined, specifying the necessary knowledge, skills, experience and personality traits required to perform the role effectively. The competency models we wrote about earlier are an invaluable tool here.
Another extremely important stage is the identification of a talent pool – high-potential employees (HiPo) who could take on key roles in the future. This process should be based on diverse and objective assessment methods, such as analysis of past performance, competency assessments (including 360 degrees), Assessment/Development Center results, managerial appointments supported by specific arguments or specialized potential tests. A popular tool to support this process is a talent matrix (e.g. 9-box grid), which allows segmenting employees based on their current performance and development potential. Once talent is identified, it is necessary to assess their readiness (readiness assessment) for specific succession roles (e.g., “ready now,” “ready in 1-2 years,” “ready in 3-5 years”) and diagnose their individual development needs and competency gaps in relation to the success profiles of the target positions. Based on this, personalized development plans are created for potential successors, which are the heart of the entire program. Building a diversified talent pool that takes into account different perspectives and experiences is crucial for the organization’s resilience and innovation.
Development of future leaders through succession programs: personalized paths, mentoring, coaching and strategic projects
Simply identifying talent and potential successors is only the beginning of the journey. A key component of any successful succession program is to provide these individuals with purposeful, differentiated and accelerated development experiences that will prepare them to meet the challenges of future roles. A “one size fits all” approach is clearly inadequate here; personalized development paths that take into account the individual needs, aspirations and diagnosed competency gaps of each program participant yield the best results. Individual Development Plans (IDPs) should be created in collaboration with the talent, their supervisor and a mentor or coach.
An important part of developing future leaders is to provide them with opportunities to gain experience through challenging and demanding assignments (stretch assignments). This could be leading a strategic project, being responsible for a new business area, managing a team in a difficult situation or participating in a merger or acquisition. Such “stretch assignments” are an extremely effective way to develop leadership skills, strategic thinking and mental toughness. Equally valuable are planned job rotations (job rotations), which allow talent to gain comprehensive experience in different departments or functions of the organization, broaden their perspective and better understand the business as a whole. International assignments (international assignments), when possible, further develop cross-cultural competence and the ability to operate in a global environment.
Individual forms of support, such as mentoring and coaching, play an irreplaceable role in successor development. An experienced mentor can share his or her knowledge, perspective and network, helping the talent navigate the organization and make strategic decisions. A professional coach (executive or business coach), on the other hand, supports in working on specific competencies, overcoming developmental barriers and maximizing leadership potential. Dedicated leadership programs, talent academies or specialized training are also an important component, providing new knowledge and tools. Action learning projects, where a group of talents work together to solve a real business problem, learning through practice and sharing experiences, are also increasingly used. The key is to create an integrated and stimulating development environment that continually challenges and supports the growth of future leaders.
Roles and responsibilities in the succession planning process: from board involvement to day-to-day support of line managers
Successful succession planning is not a task for the HR department alone; it requires involvement and cooperation at all levels of the organization, from top management to line managers. Each of these groups plays a specific and extremely important role in ensuring the success of the entire process. At the forefront is top management (CEO, Board of Directors, Supervisory Board), who must sponsor and advocate for succession planning. They are the ones who define strategic leadership needs, promote a culture of talent development, approve key decisions regarding successors to top positions, and provide the necessary resources for the program. Their personal involvement sends a signal to the entire organization about the priority of this initiative.
The HR department acts as an architect, facilitator and coordinator of the entire succession planning system. It is responsible for designing the methodological framework, creating tools for identifying and assessing potential, organizing development processes (e.g., leadership programs, coaching, mentoring), supporting managers in their development role, as well as monitoring the effectiveness of the program and ensuring its consistency with other HR processes. HR specialists ensure that the process is objective, fair and transparent, as well as compliant with best practices and legal requirements.
Line managers are the key executors of succession strategies in daily practice. They are the ones who know best their subordinates, their strengths, areas for development and aspirations. It is their job to proactively identify talent in their teams, nominate them for succession programs, and, above all, support their development on a daily basis by delegating appropriate tasks, giving regular feedback, acting as a mentor or coach. Managers also participate in regular talent review meetings, where they discuss potential and development plans for key employees in their areas. Their commitment and ability to develop people is absolutely fundamental to building a strong bench.
Finally, employees identified as talents themselves also bear responsibility for their development. They are expected to be proactive, open to new challenges, ready to learn and accept feedback, and actively participate in planned development activities. Succession is a two-way process, requiring partnership and commitment from all parties.
Communication and expectation management in succession programs: transparency, confidentiality and trust building
Communication related to succession programs is one of the most sensitive and challenging aspects of the entire process. Finding the right balance between the need for transparency and the need to keep certain information confidential, as well as skillfully managing employees’ expectations, are key to building trust and maintaining motivation throughout the organization. On the one hand, employees should understand the general principles of the succession program, the criteria for identifying talent and the development paths available. Transparency in this regard builds a sense of fairness and shows that the company is investing in the development of its people. On the other hand, individual succession plans for specific positions or lists of potential successors are often sensitive information, the premature or incompetent disclosure of which could cause unnecessary tension, demotivation of those not included in the plans or undue pressure on identified talent.
Therefore, the communication strategy should be carefully considered. It is advisable to communicate openly about the goals and general principles of the succession program, to inform about available development opportunities and how employees can influence their careers at the company. It is important to emphasize that development is available to a wide range of employees, and that programs for HiPo are only one part of it. Individual conversations with employees identified as talents should be conducted in a very tactful manner and focused on their development, not on guarantees of future promotions. It should be clearly communicated that participation in a talent program is an opportunity and an honor, but that ultimate promotion depends on many factors, including performance and vacancy availability.
It is equally important to manage the expectations of employees who are not qualified for formal talent programs. They should be provided with other opportunities for development, clearly communicate the criteria and give constructive feedback on what they can do to improve their chances in the future. It is crucial to avoid a situation where “two classes” of employees – “stars” and “the rest” – are created. Development activities should be available at different levels, and talent identification processes should be repeated regularly, giving newcomers a chance. Building a culture in which development is a value in itself, not just a ticket to promotion, helps keep the entire workforce engaged. The HR department and managers play a key role here, ensuring that the message is consistent and that each employee is treated individually.
Measuring the effectiveness of succession programs and their integration into an overall talent management strategy
In order for succession programs to be seen as a strategic investment and not just an expensive add-on, it is essential to systematically measure their effectiveness and impact on the organization, and to integrate them closely with other elements of the overall talent management strategy. The evaluation process should be planned as early as the program design stage and include both quantitative and qualitative indicators to assess various aspects of the program’s performance.
Key quantitative indicators for evaluating succession programs include the percentage of key positions filled by internal candidates, the bench strength index, or the number of identified and ready (or nearly ready) successors for each critical role, the average time it takes to fill a key position vacancy (time-to-fill), high-potential employee retention rates (comparing turnover in the talent pool with overall turnover in the company), and the effectiveness and performance of those promoted internally through the succession program. Analyzing this data over time makes it possible to assess whether the program is making a real contribution to building internal leadership strength and ensuring business continuity.
Equally important is qualitative data to understand participants’ experiences and the impact of the program on their development and on the organization’s culture. These can be collected through regular satisfaction surveys among program participants (talent) and their supervisors, in-depth interviews, and by analyzing feedback from coaching or mentoring sessions. It is worth asking about the perceived value of specific development activities, support from superiors and the organization, clarity of goals and expectations, and the impact of the program on the development of specific competencies and career prospects. This information is invaluable for continually improving the program and adapting it to the needs of participants.
Effective succession planning requires close integration with other talent management processes. The results of employee assessments and performance management systems are a key source of information for identifying potential. Competency models provide a framework for defining success profiles and assessing development gaps. Training and development (L&D) programs should be closely aligned with needs identified through succession planning. Diversity and inclusion (D&I) initiatives should ensure that talent pools are diverse and that all employees have equal development opportunities. Regular talent review meetings, attended by leaders from different parts of the organization, are a key forum for discussing potential, development and succession plans, ensuring consistency and calibration across the company. Only such a holistic and integrated approach ensures that succession planning becomes a dynamic and effective process, realistically supporting the organization’s strategic goals.
Challenges, best practices and a forward-thinking approach to succession: how EITT is supporting organizations to build a sustainable leader-based advantage
Despite its many benefits, implementing and effectively managing succession programs is a complex process fraught with potential challenges. One of the most common problems is the difficulty of objectively identifying employees’ true potential, which can lead to misappointments or overlooking hidden talent. Keeping identified successors engaged and motivated over the long term, especially if promotion prospects are distant or uncertain, is also a significant challenge. The risk of an “exodus” of talent in which the company has invested significant resources to competitors is always present. Ensuring that the process is fair and transparent, so that it is not perceived as favoring a select few, requires great care and excellent communication. Another challenge is keeping succession plans dynamic and up-to-date in the face of constant organizational and market changes. Finally, resistance from existing leaders, who may fear losing their best people to other departments or perceive the development of successors as a threat, can also inhibit the effectiveness of the program.
To overcome these challenges and build an effective succession program, it makes sense to build on best practices. A strong and visible commitment from top management that gives the program strategic importance is key. It is essential to closely align succession planning with the company’s long-term business strategy and to regularly adapt it to changing needs. Using diverse and objective methods to identify and assess potential, supported by sound competency models, increases the accuracy of choices. Creating personalized and engaging development plans based on diverse experiences (the 70-20-10 rule) is much more effective than standard approaches. Regular reviews of talent and succession processes with key leaders provide momentum and calibration throughout the organization. Open, yet properly managed, communication about the program builds trust and commitment. Finally, an emphasis on building diverse talent pools (diversity pipelines) is not only a matter of ethics, but also a source of innovation and a better understanding of the market.
As an experienced partner in strategic human resources management, EITT supports organizations in designing, implementing and optimizing succession programs that are not only effective, but also inspiring and tailored to each company’s unique culture and goals. We help our clients accurately define key roles and success profiles, implement reliable methods for identifying and assessing potential (including Assessment and Development Center), and design engaging and effective development paths for future leaders. We offer training and workshops for managers and HR professionals in conducting talent reviews, coaching, mentoring and managing succession processes. We also support you in building an organizational culture that fosters the development and promotion of internal talent. Our goal is to help you create a succession planning system that will become a sustainable source of competitive advantage and provide your organization with strong leadership for years to come.
In conclusion, succession programs are an essential part of the strategic management of any forward-thinking organization. It’s not just planning for the unexpected, but more importantly, consciously shaping a company’s future by investing in its most valuable resource – talented and committed people. In a world where adaptability and having the right leaders in the right places determines success, professional succession planning is becoming a core organizational competency. It’s a process that requires vision, consistency and commitment, but its fruits – in the form of stability, growth and a strong culture – cannot be underestimated.
If your organization is facing the challenge of building or improving its succession planning system, or if you are looking for support in identifying and developing future leaders, we invite you to contact EITT. Our experts are passionate and committed to helping you design solutions that best meet your needs and contribute to building lasting value for your enterprise. Together, we can ensure the future of your organization by investing in its leaders today.
