People are the heartbeat of any organization. Their knowledge, expertise, and leadership drive growth, innovation, and stability.
But what happens when key individuals step away—whether due to retirement, promotion, or unexpected circumstances? Without a plan in place, even the most successful organizations can find themselves struggling to maintain momentum.
Succession planning bridges this gap. It’s not just about preparing for leadership changes; it’s about creating a resilient organization capable of navigating transitions with confidence and clarity. In an era marked by rapid workforce changes and shifting demographics, effective succession planning has never been more essential.
However, research from Deloitte found that only 14% of leaders believe their organizations do succession planning well – despite the fact that 86% see it as an urgent or important priority.
At its core, succession planning is a strategic process designed to identify and develop future leaders within an organization. It ensures that critical roles remain filled, minimizing disruptions and safeguarding business continuity.
A well-executed succession plan aligns with the organization's long-term goals, creating a talent pipeline capable of supporting growth and adapting to change. Organizations that invest in succession planning are better positioned to navigate challenges and retain top talent.
The workplace continues to evolve at an unprecedented pace, shaped by advancements in technology, shifting workforce priorities, and the growing complexity of organizational structures.
For succession planning to succeed in 2025 and beyond, organizations must treat it as a core business strategy, not a one-time initiative.
Companies can work with an employee assistance program to develop and implement leadership succession planning.
The foundation of any successful succession plan begins with identifying roles that are crucial to an organization’s stability and growth. These roles aren’t limited to C-suite executives; they can include specialized technical positions or key contributors with unique expertise.
Start with a detailed role analysis to clarify responsibilities and the core skills required. Beyond technical qualifications, emotional intelligence and leadership potential are often deciding factors in identifying successors.
Developing a strong talent pipeline is essential for ensuring leadership continuity. Rather than focusing solely on identifying successors, organizations must actively nurture talent at every level.
A sustainable talent pipeline isn’t built overnight—it’s cultivated through consistent investment and support.
Continuous development is the cornerstone of effective succession planning. Employees need opportunities to refine their skills, broaden their experience, and grow into leadership roles.
Organizations should provide:
These initiatives not only prepare employees for future roles but also enhance overall organizational resilience.
Succession planning cannot exist in a vacuum. It must align seamlessly with an organization’s strategic objectives. Leadership development priorities should directly support long-term business goals.
Evaluate current and future organizational needs and ensure leadership development priorities align with strategic goals. Use key performance indicators (KPIs) to measure success and adjust succession plans based on business outcomes.
A transparent succession planning process fosters trust among employees and reduces uncertainty. Leaders should communicate openly about the purpose and benefits of succession initiatives.
When employees see a clear path for their growth, they are more likely to stay engaged and committed.
A succession plan is not a static document. It must evolve alongside the organization. Regular reviews and updates ensure the plan remains aligned with current business needs and talent realities.
These reviews help identify gaps and refine strategies, ensuring readiness for future transitions.
While succession planning is widely seen as important, it is not without challenges. Here are a few common hurdles along with suggestions for overcoming them.
Leadership Buy-in
Leaders may not prioritize succession planning in favor of immediate business concerns, often focusing on short-term goals, quarterly results, and pressing operational challenges.
This short-sighted approach can leave organizations vulnerable to leadership gaps when key individuals leave unexpectedly. Additionally, succession planning is sometimes viewed as a low-priority administrative task rather than a strategic initiative.
Solutions:
Resistance to Change
Employees may resist succession planning initiatives due to a mix of fear, uncertainty, and a lack of clarity about the process. Common concerns include perceptions of favoritism, a lack of transparency in decision-making, or worries about job security if they are not identified as part of the succession plan.
Additionally, employees may feel disengaged if they perceive succession planning as benefiting only a select few rather than contributing to the organization's overall growth.
Solutions:
Lack of Resources
Organizations often struggle to allocate sufficient financial and human resources to succession planning, viewing it as an optional initiative rather than a business-critical strategy.
This challenge becomes even more pronounced in smaller organizations or during periods of economic uncertainty when budgets are tight, and resources are stretched thin.
Additionally, the absence of specialized tools or technology can make tracking progress, analyzing data, and managing plans inefficient.
Solutions:
Bias in Succession Decisions
Unconscious bias can significantly influence succession planning outcomes, often leading to decisions based on personal preferences, stereotypes, or unintentional favoritism rather than objective criteria. This can result in missed opportunities for highly qualified candidates, a lack of diversity in leadership roles, and overall weaker succession outcomes.
Bias may also manifest in how leadership potential is perceived, with certain demographics or personality types being favored over others.
Solutions:
Succession planning is a cornerstone of organizational resilience and growth today and will continue to be so in the future. Organizations that prioritize and commit to an ongoing effort of planning will be well-served by having a strong ‘bench’ of leaders who are prepared to assume critical roles, leading to more success and stability as current leadership moves on.
When you partner with Ulliance, our Life Advisor Consultants are always just a phone call away to teach ways to enhance your work/life balance and increase your happiness. The Ulliance Life Advisor Employee Assistance Program can help employees and employers come closer to a state of total well-being.
Investing in the right EAP or Wellness Program to support your employees will help them and help you. Visit https://ulliance.com/ or call 866-648-8326.
The Ulliance Employee Assistance Program can address the
following issues:
• Stress about work or job performance
• Crisis in the workplace
• Conflict resolution at work or in one’s personal life
• Marital or relationship problems
• Child or elder care concerns
• Financial worries
• Mental health problems
• Alcohol/substance abuse
• Grief
• Interpersonal conflicts
• AND MORE!
References:
11 Succession Planning Best Practices to Follow in 2025; Academy to Innovate HR; Monique Verduyn
https://www.aihr.com/blog/succession-planning-best-practices/
20 Strategies For Navigating Effective Succession Planning; Forbes https://www.forbes.com/councils/forbeshumanresourcescouncil/2024/02/02/20-strategies-for-navigating-effective-succession-planning/
Succession Planning: Complete Guide with Examples & Case Studies; Someka https://www.someka.net/blog/succession-planning/
Succession Planning Examples from Top Companies; PeopleBeam https://www.peoplebeam.co/blog/succession-planning-examples-from-top-companies
The Holy Grail of Effective Leadership Succession Planning; Deloitte Insights; Jeff Rosenthal, Kris Routch, Dr. Kelly Monahan, and Meghan Doherty
https://www2.deloitte.com/content/dam/insights/us/articles/4772_Leadership-succession/DI_Succession-planning.pdf