Succession planning best practices come down to a repeatable process: identify the roles that matter most, define what success in each role requires, assess and develop at least two candidates per role on evidence, and plan the handover itself. Organizations that treat succession as an ongoing development system, rather than a list filed once a year, are far better prepared when a key leader leaves.
Why succession planning deserves board-level attention
Leadership turnover is frequent and often sudden. According to Challenger, Gray and Christmas data cited by SHRM, 1,261 CEOs left their posts in the first eight months of 2023, up 41 percent from the same period a year earlier. The same article reports a Gartner survey in which only 51 percent of board directors said their company had a written CEO succession plan. Below the CEO, plans are often even thinner. The practices below apply at every level, from the executive team to frontline managers.
Step-by-step succession planning process
- Identify critical roles. Start with roles where a vacancy would hurt results, customers, or safety, not only the top of the org chart. Include roles held by people with rare knowledge.
- Define success profiles. For each role, write down the outcomes it must deliver over the next three years and the capabilities and behaviors that produce them. Base this on strategy, not on the current incumbent.
- Assess the talent pool. Rate candidates on performance, potential, and readiness using evidence: results, observed behavior, and multi-rater feedback. Calibrate ratings across managers.
- Name at least two successors per role, one ready soon and one longer term, so a single departure does not empty the bench.
- Build individual development plans with stretch assignments, coaching, and exposure to senior decisions. Classroom training alone rarely closes readiness gaps.
- Plan transitions. Agree overlap time, a handover checklist, and how authority shifts.
- Review and refresh. Revisit the plan at least twice a year and after any reorganization or strategy change.
Common succession planning models
There is no single right model. Most organizations combine elements of these.
| Model | How it works | Best for | Watch out for |
|---|---|---|---|
| Replacement planning | Name a specific successor for each key role | Small leadership teams, urgent coverage | Fragile if the named person leaves or stalls |
| Talent pool (bench) model | Develop a group of high-potential people for a family of roles | Growing organizations, uncertain future roles | Pools can become vague without role-specific goals |
| Nine-box review | Plot people on performance and potential to guide decisions | Calibrating ratings across managers | Turns into labeling if not tied to development plans |
| Emergency succession plan | Name interim leaders and decision rights for sudden vacancies | Every critical role, as a minimum | Often skipped because it feels unlikely |
| Leadership pipeline approach | Prepare people for each transition in level, such as manager to manager of managers | Large organizations with many layers | Needs consistent development at every level |
Benefits of succession planning done well
- Continuity: fewer gaps in decision-making and customer relationships when someone leaves.
- Retention: high-potential people stay when they can see a credible path forward.
- Better hiring decisions: when no internal candidate fits, you know early and can recruit without panic.
- Stronger leadership overall: development aimed at future roles raises capability across the bench.
Benchmarks and metrics to track
Published industry benchmarks vary widely by sector and size, so the most useful comparison is usually your own trend over time. Track a small set of measures:
- Bench strength: percent of critical roles with at least one ready-now successor.
- Coverage depth: average number of named successors per critical role.
- Internal fill rate: percent of critical vacancies filled by people on the plan.
- Successor success: share of internal promotions rated effective after 12 months.
- Retention of successors: turnover among people named on the plan.
For a list of what to include in your plan and how to measure it, see the succession planning toolkit. If you are deciding whether you need a platform, read how to compare succession planning software.
The practice most plans skip: handing over agreements
A succession plan usually answers “who” and “when.” It rarely answers “what is this person carrying that nobody else can see.” Every leader holds a web of commitments to their team, peers, and customers. DorWay calls organizations Networks of Agreements™, and transitions are where that network breaks most often. A handover should include an inventory of open commitments and recurring expectations, so the successor can decide openly which to keep and which to renegotiate. That is accountability in practice.
Development for future successors should build this skill directly. The Leaders Edge Path™ develops leaders to make, keep, and renegotiate agreements clearly, which is exactly what a new leader needs in the first 90 days. For the transition risks to plan around, see succession planning risks.
FAQ
What are the best practices for succession planning?
Focus on critical roles, define success profiles from strategy, assess candidates on evidence, name at least two successors per role, invest in development plans with real stretch work, plan the handover, and refresh the plan at least twice a year.
What are the steps in the succession planning process?
Identify critical roles, define what success requires in each, assess the talent pool, name successors, create development plans, plan transitions, and review the plan regularly.
How often should a succession plan be updated?
At least twice a year, and whenever there is a reorganization, a major strategy change, or a departure from the plan itself.
Should employees know they are on a succession plan?
In most cases, yes, with care. Candidates who know they are being developed for a role, and what they need to work on, are more likely to stay and grow. Avoid promising a specific job or date you cannot guarantee.