Succession Planning Best Practices for High-Performing Organizations
“We hired LSA Global to help our long-term client identify root causes and develop an action plan for improving their leadership bench strength in face of high attrition and a changing marketplace. LSA’s succession planning expertise was a 10-out-of-10.
Their recommendations in the areas of attracting and recruiting the right talent, hiring and promoting the best talent, employee development, performance management, knowledge management, and succession planning were right on target.
I would recommend LSA to anyone looking to take their talent management practices to the next level.”
Director | Risk Advisory Services | Global Audit, Tax and Consulting Firm
A recent study by LinkedIn found that 80% of CEOs are worried about the availability of key skills required to execute their strategies. Successful organizations make sure that they have the right people in the right positions to propel the business forward. That includes building internal bench strength, filling the talent pipeline, and being prepared for planned and unplanned personnel changes.
Done right, succession planning should be the fastest, cheapest, and most reliable way to get well-qualified talent into open positions.
Unfortunately, very few companies have an effective or strategic succession planning process.
Companies report feeling forced to go outside for key talent more often than they would like because they do not have sustainable leadership pipeline.
Succession planning is a critical component of an overall talent management strategy which aims to attract, develop, engage, and retain top talent to execute the business strategy in a way that aligns with the organizational culture.
Succession planning focuses on identifying and developing internal talent with the potential to fill key business leadership positions in the organization. Succession planning increases the availability of experienced and capable employees through effective development of the high-potential employees, so that they are prepared to assume leadership roles as they become available.
Done right, succession planning helps build the bench strength to ensure the long-term health, growth, and stability of an organization.
Effective succession planning typically includes five major steps that are highly customized for each unique situation:
Typical stakeholders include the Board of Directors, Chief Executive Officer, Chief People Officer, Head of Talent, Senior Executives, front-line managers, and employees.
The goal is to get clear agreement and alignment about the critical few difference-making roles.
Once again, less is more in this stage. Look for the critical few that matter most for your unique situation, not an exhaustive list.
The objective of a talent review is to identify talent and structure strengths and weaknesses, spot and groom high potentials early, mitigate retention risks, and establish talent pools by levels based on the strategic strengths of the organization.
Targeted action learning leadership development plays a critical role in succession planning and often gets overlooked or is not fully implemented.
The entire succession planning program should be reviewed and adjusted (typically annually) in concert with the overall business and talent strategic planning processes. You will know you are headed in the right direction when you have the right talent in place for now (“ready now candidates”) and in the future (“talent pipeline”) to execute your strategy in a way that makes sense
Ask us about Pay-for-Performance options and how to move the leadership metrics that you care most about. Typical metrics that we move include:
Succession planning is the process of identifying, assessing, and developing high-potential talent to fill critical leadership and business roles. Effective succession planning helps organizations maintain continuity, strengthen leadership bench strength, reduce hiring costs, and ensure they have the right people ready to execute their strategy when key positions become available.
The most effective succession planning processes combine leadership simulation assessments, performance data, potential evaluations, and business requirements to identify candidates with the capability and motivation to succeed in future roles. Rather than focusing solely on current performance, organizations should evaluate future leadership potential, readiness, and alignment with evolving business needs.
Common mistakes include treating succession planning as a one-time exercise, focusing only on current positions, failing to align talent decisions with business strategy, and neglecting action learning leadership development. Many organizations also underestimate future skill requirements, leaving them unprepared for changing market conditions and leadership transitions.
Leadership development builds leadership capabilities across the organization, while succession planning focuses on preparing specific individuals or talent pools for critical future roles. High-performing organizations integrate both approaches, ensuring they develop strong leaders while also maintaining a pipeline of ready successors for key positions.
When done well, succession planning reduces leadership gaps, improves employee retention, accelerates internal promotions, strengthens organizational resilience, and increases the likelihood of successful leadership transitions. It also helps organizations build a sustainable talent pipeline that supports long-term growth, stability, and strategic execution.
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