Succession planning is the process whereby an organisation plans its human resources in such a way as there are successors to take over when senior post holders retire or leave.  It is all about identifying skills and providing appropriate training and development to enhance those skills so that the successors can effectively step into an identified pre-determined role.  By nature of its description the planning is to considered as part of a long term strategy.  Succession planning can be for an individual or for a pool of employees.  Succession planning for an individual can be due to a specialism.  Using a pool of employees who are to be developed is ideal to develop generalist skills so that the individuals can be slotted into a number of posts when they become vacant.

It is relevant for both small and large organisations.  Some time ago I had a conversation with the MD of a small business who did not have any family to pass the business to.  He told me he did not know what would happen to the business when he came up for retirement.  I advised him that it would be a good idea to identify someone in the business who could take over whilst he took a back seat when the time came.

These days succession planning is linked to strategic talent management and should be balanced in that home grown talent is used in conjunction with recruiting outsiders who bring fresh blood.  A wide range of activities can be incorporated into the development of internal talent which includes informal and formal activities designed so the individuals can gain work experience. Whilst many upward moves are not possible these days with the growth  of flatter management structures, lateral  moves and secondments can offer valuable development experience.  Succession planning should also be linked to business strategy.

Candidates for succession planning can come out of conversations with managers, appraisal interviews, skills audits and competency assessments and is usually coordinated by HR.