What is Succession Planning and Why is it Important?

Imagine a workplace where everything is running great. A small, tight-knit team focuses on mission-driven projects. Relationships and systems are locked in and achieve great results. 

Now, imagine a team where everyone is stressed and distracted. Resources are tight. There’s never enough time or money. Innovation is limited, and people are burnt out. 

What do these teams have in common? 

It’s likely neither is thinking about succession planning. 

Whether things are going well—or not so well—organizations can get stuck in the status quo. In the midst of daily work projects, thinking about future planning can easily take a back seat to other priorities.  

But no matter the state of your organization, succession planning is worth doing. In fact, it’s essential to protect institutional knowledge and maintain a competitive edge, no matter what your industry. Let’s see why. 

What is Succession Planning? 

Succession planning is a formal process to ensure “continuity and performance, particularly during times of shifting leadership and change.” It helps leaders identify, assess, and develop talent from within the organization. 

On the surface, succession planning looks simple. You identify essential roles you don’t want to lose. Then you find people within the organization who have the potential to fill those roles in the future. You build a plan to mentor, train, and develop those people, and the organization maintains continuity. 

In reality, succession planning isn’t quite that easy. It doesn’t have to be difficult, but it should be intentional, formal, and systematic. It’s not about advancing your favorite employees or favoring leadership roles over other positions. It is about making sure your organization is prepared for the changes that happen when people leave or retire. And because organizations change rapidly, succession planning should be ongoing. Think of it as an opportunity to assess your organization’s strengths in order to maintain them—even in the face of uncertainty. 

At the core of succession planning is identifying the skills, networks, and knowledge needed to keep the organization thriving. Those skills are likely scattered throughout your organization, which is why succession planning isn’t just about replacing members of the executive team. Alex Green at ADP notes that “traditionally, it was reserved for grooming future chief executive officers (CEOs) and senior leadership, but that approach is no longer considered strategic. Many employers today extend succession planning to a broader base of employees throughout their organization.” Dori Meinert, writing for SHRM, sums it up by saying that “organizations should be developing replacements for anyone whose sudden departure could disrupt the business.” In fact, your most important employees might work on the floor or front lines and have knowledge or skills that directly affect operations. 

Why do Succession Planning?  

A succession planning process takes time, but it can prepare your organization for the future by taking advantage of the skills and networks you have at hand. Here are a few key reasons to plan: 

• Develop internal skills. Focusing on skills rather than positions gives you an opportunity to look broadly at your workplace and elevate talent no matter where it comes from. Doing so, according to Monique Verduyn writing for the Academy to Innovate HR, helps you “build a bench of highly skilled people ready to take over the reins—all fueling long-term growth and innovation” that creates “a smooth transition and maintain stability during leadership changes by preparing a talent pipeline of successors.”
  
  
• Maintain knowledge. If your most skilled employee walked out the door tomorrow, what knowledge would they take with them? Have they built key relationships with customers? Do they have specialized skills or expertise? Are they the only one who knows how to send the company newsletter? Losing institutional knowledge reduces motivation and productivity and increases stress and costs. A succession planning process lets you collect information and knowledge before someone leaves, so you can fill gaps without work stalling—or falling apart. 
  
  
• Increase engagement. Most people want to be engaged at work. This is especially true for Gen Z employees, who are less likely to stay in a job that doesn’t engage them. Writing in the Academy to Innovate HR, Erik van Vulpen notes that “a succession plan presents a structured approach to preparing a new generation of leaders to steer your organization forward.” Increasing employee engagement leads to better work satisfaction and commitment to the organization.
  
  
• Reduce the time and cost of hiring. It can take a long time to hire someone. In the meantime, key positions are empty and other employees have to pick up the slack. Green points out that when organizations don’t plan, they see their “talent pool and knowledge base immediately diminish, while costs increase as they scramble to hire a replacement and maintain productivity.” 

Benefits of Succession Planning 

Planning for succession takes time. And while the benefits aren’t necessarily immediate, they are long-lasting and more likely to be sustainable. Here are some things it helps you do:

• Formalize processes. Succession planning gives a bird’s-eye understanding of your organization. Instead of looking at single positions whenever someone leaves or retires, you’re looking at the whole system at once. It’s easier to see networks and relationships, as well as the skills and knowledge that exist within them. Think of it as gathering top-level intelligence on your organization. Who actually keeps things running? What would fall apart if they leave? And how do you make sure that doesn’t happen? Creating a formal process gives you the big picture of how your organization operates so you can make smarter long-term plans, rather than ad hoc decisions. Plus, creating a formal system keeps things transparent, which creates a healthier workplace for everyone.  
  
  
• Assess your current situation. At its core, succession planning helps you identify critical positions and the skills and knowledge in each role. The formal process of succession planning gives you a series of snapshots of your organization over a period of time. Because things change fast in most industries, regularly assessing your current situation gives you a chance to identify what’s working and what isn’t. You can more quickly recognize and address gaps, as well as trends and future skills—all of which give you a competitive advantage over organizations that aren’t doing these things. 
  
  
• Identify internal talent. Once you determine the skills and knowledge that keep your organization running—and those you’ll need to stay competitive in the future—you can start identifying employees who can develop these skills to match your organizational goals. Who shows potential? How can you prepare them for future leadership opportunities? Succession planning provides constant, long-term opportunities to learn new skills, build networks, share ideas, and gain confidence. Training and mentoring current employees is often less expensive than trying to hire someone new. And building an internal pool of potential candidates means you can hire with more speed and confidence! 
  
  
• Get from here to there. All of the above benefits add up to this one! When you know your gaps and can fill them, you’re building a bridge to the future. Identifying where you are, where you want to go, and the skills and knowledge you need to get there helps you more quickly, efficiently, and confidently adapt as things change. Verduyn sums up succession planning as adopting “a proactive approach that ensures your talent pool is prepared to meet future challenges.”

Training for Succession

So how do you get from here to there? Once you identify those gaps, how do you fill them with your current talent pool? 

Training. 

Verduyn recommends as a best practice that organizations “provide targeted development opportunities, including training, workshops, and further education, to prepare identified successors for their future roles. This includes learning experiences such as specialized training, workshops, and further education programs.”

Van Vulpen notes that “many organizations have talent development programs where high-potential employees receive training, different tasks, and challenging assignments.” But training isn’t a one-size-fits-all. And it shouldn’t be. Different positions and employees need different strategies to ensure success. Verduyn notes that organizations should “tailor development plans to the individual needs of potential successors.” Let’s look at how.

• Cross-training and job shadowing. Giving employees opportunities to see how leadership works throughout the organization helps them build their skills and networks. Cross-training and job shadowing are especially useful if someone has specific, highly specialized knowledge that isn’t easily passed on through things like policy or procedure documents. Giving people access to “cross-functional projects, and exposure to different areas of the business,” helps them learn hands-on, make an impact on other areas of the organization, and build their confidence. And the great thing is, cross-training and job shadowing opportunities have expanded. Virtual job shadowing lets employees learn, share, and network even when their shifts don’t match or they’re in different locations. 
  
  
• Mentoring. Forbes notes that “encouraging mentorship can be instrumental in building the bench of future leaders.” Plus, mentorship helps improve organizational health and builds a better workplace culture overall. But it’s important to remember that mentors are made, not born! Verduyn points out that “well-equipped mentors make the experience more beneficial for both parties,” but adds that mentors need training too! Organizations should “provide training for mentors on how to support their mentees effectively. Equip mentors with the right tools and knowledge on how to support their mentees. Cover areas such as communication skills, setting goals, providing constructive feedback, and understanding the mentee’s unique developmental needs.”
  
  
• Internal training and workshops. Formal training has an important place in succession planning and employee development. Forbes writes that “an excellent leadership succession planning strategy is organizing in-house leadership skills training sessions. These workshops, led by internal experts or senior managers, focus on key leadership skills like effective communication, team management, conflict resolution and decision-making.” And Verduyn points out that “formal courses, whether online or in-person, provide structured learning on specific topics, often leading to certification or advancement in certain skill areas.” Building your own courses or training program gives you complete control of your succession planning process. Tools like Niche Academy make it easy to create and deliver consistent, comprehensive training that’s tailored to individual employees’ career paths. 

Build Your Succession Plan Today 

If you’re ready to start succession planning, we’re here for you. Our tools help you develop your succession plan and implement the training and professional development employees need to carry it out. We’ll help you build better leaders who can carry your organization into the future. 

Start a free trial to get access to our brand-new tutorial on succession planning. Once you set up your trial, you can browse our Marketplace of tutorials. Search for “Succession Planning Basic” and add it to your academy. Then you can follow the step-by-step lessons on how to develop a plan with hands-on activities that give you a roadmap for creating a plan that works for your organization. 

Verduyn notes that “investing in professional development” is key to succession planning. So, when you’re ready to start training for succession, you’ll find hundreds of Niche Academy-made tutorials that help you tailor training to your staff. You can also create your own training with our platform and start building future leaders today! 

References

Green, A. Succession planning. ADP. 

Meinert, D. (June 21, 2018). Succession planning is easier than you think. SHRM. 

Succession planning: A step-by-step guide. (2021). National Institutes of Health Office of Human Resources. 

Van Vulpen, E. Succession Planning: All You Need to Know (2025 Version). Academy to Innovate HR. 

Verduyn, M. 11 Succession Planning Best Practices to Follow in 2025. Academy to Innovate HR.