Succession Planning is preparing for the inevitable and often unexpected changes in leadership. There are financial and legal issues to consider, but this information is geared to the management concerns.
Form the perspective of a boss, succesion planning (sometimes called “succession development”) is a process for identifying and developing internal employees with the potential to fill key leadership positions in the company. It is very important for the sustainability of a company, yet few firms, especially smaller ones take the time to do it.
The process involves understanding the competencies needed for the leadership role, assessing the capabilities of the potential successor, and designing a development plan to prepare the individual within a certain period of time. Part of the reason companies don’t do this is because it can make the incumbent leader feel unsure about her future. A good boss identifies someone to succeed him and develops the skills of the successor.