Succession Planning – Ready for Change?

By Candace Fisher, SPHR, Director, Organizational Development/Certified Coach
Published October 8, 2024

Succession planning is a process that can help to ensure business viability. It is a critical strategy that enables organizations to be resilient when change occurs and allows for smooth, thoughtful transitions. While Human Resources is often charged with the assignment of succession planning, the responsibility is really one of all senior leadership. 

Some transitions can be foreseen. Many employees put a lot of thought and planning into their retirement and make no secret of their intentions. Certainly, those in key positions should never fail to inform the organization of their plans so that the organization can coordinate accordingly. However, not all departures are anticipated. These situations can be unsettling and even destabilizing for the organization if there’s no succession plan in place.

There are three options when filling key positions in your organization: build, borrow, or buy.

“Building” the position is what we think of as traditional succession planning. We identify potential internal candidates and assess their readiness to fill the position. Skill and ability gaps are explored, and training, coaching, and mentoring ensues to prepare candidates so that, when the time comes, the transitions can occur as smoothly as possible.

“Buying” usually entails an executive search to find a candidate in the external job market. Given the critical nature of key positions, the searches are usually extensive and can be both expensive and time-consuming. 

“Borrowing” involves bringing in temporary help to fill a position in the short term, especially when an opening occurs unexpectedly. In this case, the organization may invite a former employee to come back to the organization or may bring an experienced consultant in to fill the gap. During this time, an internal candidate may be mentored by the temporary incumbent as they gain the necessary experience. This may afford the organization the necessary time to find the right candidate from outside the organization.

While there is no single, correct way to fill every key position, organizations that commit to succession planning and attempt to build their talent from within may have better success at retaining talent. Talented employees seek growth opportunities, and succession planning demonstrates a commitment to developing internal talent.

On October 16, HR Source is offering Succession Planning: Building Your Bench. Visit our Training Calendar to register or for more information about the program.