--- title: "Succession Planning Process Primer: Who's Next? | PPS International" description: "A step-by-step succession planning process: five components, the decisions to make first, seven steps, assessments, stakeholders and how to tell it is working." image: https://www.ppsinternational.net/hubfs/pps-international/resources/images/pps-resource-812036b5d6212873c5b7.jpg --- [Skip to main content](https://www.ppsinternational.net/resources/articles/whos-next-a-succession-planning-primer#main-content) [![PPS International Limited](https://www.ppsinternational.net/hubfs/raw_assets/public/pps-international/assets/images/logo.svg)](https://www.ppsinternational.net/) [Expertise](https://www.ppsinternational.net/expertise) [Leadership Development](https://www.ppsinternational.net/leadership-development) [Talent Development](https://www.ppsinternational.net/talent-development) [Communication & Influence](https://www.ppsinternational.net/communication-influence) [Change & Transition](https://www.ppsinternational.net/change-transition) [Sales & HR Effectiveness](https://www.ppsinternational.net/sales-hr-effectiveness) [Performance Support](https://www.ppsinternational.net/performance-support) [Implementation Support](https://www.ppsinternational.net/implementation-support) [Solutions](https://www.ppsinternational.net/solutions) [Assessments](https://www.ppsinternational.net/assessments) [Contract Training & Facilitation](https://www.ppsinternational.net/contract-training-facilitation) [Coaching Services](https://www.ppsinternational.net/coaching) [Instructional Design Services](https://www.ppsinternational.net/instructional-design) [Interaction Styles](https://www.ppsinternational.net/interaction-styles) [Training Administration](https://www.ppsinternational.net/training-administration) [Training Programs](https://www.ppsinternational.net/programs) [Shop](https://shop.ppsinternational.net/) [Resources](https://www.ppsinternational.net/resources) [About](https://www.ppsinternational.net/about) [About PPS](https://www.ppsinternational.net/about) [Who We Serve](https://www.ppsinternational.net/who-we-serve) [Get in touch](https://www.ppsinternational.net/contact) Search the site Search Search the site Search Expertise [Explore all expertise](https://www.ppsinternational.net/expertise) [Leadership Development](https://www.ppsinternational.net/leadership-development) [Talent Development](https://www.ppsinternational.net/talent-development) [Communication & Influence](https://www.ppsinternational.net/communication-influence) [Change & Transition](https://www.ppsinternational.net/change-transition) [Sales & HR Effectiveness](https://www.ppsinternational.net/sales-hr-effectiveness) [Performance Support](https://www.ppsinternational.net/performance-support) [Implementation Support](https://www.ppsinternational.net/implementation-support) Solutions [Explore all solutions](https://www.ppsinternational.net/solutions) [Assessments](https://www.ppsinternational.net/assessments) [Contract Training & Facilitation](https://www.ppsinternational.net/contract-training-facilitation) [Coaching Services](https://www.ppsinternational.net/coaching) [Instructional Design Services](https://www.ppsinternational.net/instructional-design) [Interaction Styles](https://www.ppsinternational.net/interaction-styles) [Training Administration](https://www.ppsinternational.net/training-administration) [Training Programs](https://www.ppsinternational.net/programs) Explore [Resources](https://www.ppsinternational.net/resources) [About PPS](https://www.ppsinternational.net/about) [Who We Serve](https://www.ppsinternational.net/who-we-serve) [Shop](https://shop.ppsinternational.net/) [Get in touch](https://www.ppsinternational.net/contact) Article [Sales & HR Development](https://www.ppsinternational.net/resources?topic=sales-hr-development) October 31, 2014 # Who's Next? A Succession Planning Process Primer With a generation of leaders leaving their current roles for retirement and employees willing to change jobs and companies without hesitation, more talent and development professionals are asking, "Who's next?" to fill the talent and knowledge gap. Succession planning, once the people process of the very large, resource-rich organization, is now a necessity for even the smallest. Succession planning is the process of making provisions for the development, replacement and strategic use of key personnel in key positions. The most successful succession planning processes work to integrate existing systems such as performance reviews, internal recruiting efforts and training and development activities rather than adding a new layer on top of them. This primer is a step-by-step succession planning guide drawn from our [HR effectiveness](https://www.ppsinternational.net/sales-hr-effectiveness) work with organizations large and small. It covers the five components of a structured process, the design decisions to make before you start, a seven-step succession planning process, the role of assessments and how to bring stakeholders along. The original 2014 primer is also available as a [printable PDF](https://www.ppsinternational.net/hubfs/pps-international/resources/downloads/pps-resource-d2005e0fbc980d5d8a4f.pdf). ## What succession planning is and why it matters now The most common business purpose for a succession planning process is to ensure the stability and tenure of the personnel necessary to achieve organizational goals. Aside from this, talent and development professionals also know that succession planning activities build morale, increase the cross-functionality of individuals in roles, aid in reducing turnover and attract talent. It helps to separate succession planning from replacement planning. Replacement planning names a backup for a position in case of an emergency, usually a single person and usually without development attached. Succession planning develops a pool of candidates for key positions over time, so that when a vacancy comes the organization has a choice and the candidates have been prepared. Most organizations need both: the emergency list covers the business in the short term, and the development pool provides choices over time. Many organizations have not built this yet. In a SHRM survey, only 21% of HR professionals said their organization had a formal succession plan in place, 24% had an informal plan and 56% had no plan at all, with a lack of time and resources the most common obstacle \[1\]. SHRM's 2025 benchmarking found much the same picture: 22% of HR leaders reported a formal plan, even though 42% of talent management executives called creating a succession strategy a top focus for 2026. Size matters as well, with 16% of smaller organizations reporting a succession plan compared with 44% of extra-large organizations \[2\]. The gap between priority and practice is one reason we suggest starting with a process you can run this year rather than the complete system you may want in three. ## Who succession planning is for Traditionally, organizations have implemented succession planning solely for senior positions. With a growing need for knowledge transfer at all levels of the organization, the audience for succession planning is growing. The engineer who is the only one who truly understands a customer's custom configuration is landlocked in that role as much as the organization is at risk if the engineer leaves. Because of this, the audience for succession planning is broadening to include: - Senior leaders, where the cost of a vacancy or a poor transition is highest. - Mission-critical middle managers, including plant, regional and functional leaders who hold the organization's operating knowledge. - Individual contributors whose knowledge or roles are not easily replaced from within or outside the organization. - Sales leaders and key account roles, where customer relationships can leave with the person; see our guide to [planning sales leadership development](https://www.ppsinternational.net/resources/articles/how-to-plan-sales-leadership-development). ## The five critical components of a structured succession planning process Whatever its scale, a structured succession planning process has five components. Here is what each covers: | Component | What It Covers | Typical Outputs | | --- | --- | --- | | Communication | Define the process and the organization's commitment to it, and communicate on an ongoing basis. | A written process description, a calendar and messages to leaders, managers and candidates. | | Position assessment | Assess present and future work requirements for key positions. | A list of key positions and a success profile for each. | | Performance assessment | Appraise individual job performance and potential. | Talent review results, assessment data and readiness ratings. | | Placement | Promote, move laterally or hire to fulfill needs. | Placement decisions, transition plans and selection tools tied to the success profiles. | | Developmental actions | Close the developmental gaps with formal and informal development. | Individual development plans, learning maps for key groups, coaching and assignments. | These five components are the succession planning framework behind everything that follows. Fundamentally, we believe that the most successful succession planning processes devote less attention to forms than to results and developmental activities; the test of any component is whether it changes who gets developed and who gets placed. ## Before you design the process: five decisions Whether working solo or in partnership with a consulting firm, talent and development professionals can be most successful if they remember that there is no perfect system. Its success is based more upon alignment with company culture and values than on fancy systems that look good on paper but are nearly impossible to use in real life. Knowing this, ensure that your organization's principles and values are clearly defined before implementing a succession planning process, and then make decisions about the following: - **Under whose direction is the program?** Direction can come from top managers, who establish procedures and remain involved in the overall process; associates and their immediate managers can be involved in every step; human resources and training and development professionals can also lead the effort. In our consultancy we see each of these approaches work when the direction is explicit. - **What is the desired timing?** Succession planning can be conducted on an ongoing basis, periodically or once, at strategic times in the business. Timing is set by when staff resources are available and by the business need. Based on the timing, define the decision-making and information-gathering steps and the actions expected of everyone with a role in the process. - **Who has the accountability or focus?** Work to determine who holds the most accountability among candidates, managers, HR professionals and other stakeholders. A process in which managers own the development actions looks different from one in which HR administers everything. - **How open is the process?** In an open system, work requirements, participation, competencies and success factors are identified and communicated to those participating, which typically encourages candor and accountability. In a closed approach, certain stakeholders are not included, usually to reduce the labor involved, to keep more control of the process and to avoid building candidate expectations of advancement. Either can work; a process described as open that behaves as a closed one tends to lose trust. - **How much discretion do individuals have?** Determine whether individuals identified as candidates or high potentials have the option to choose whether or not to participate, and whether participation as a high potential is a requirement for job success. Where relocation, travel or a change of function is part of the path, we suggest asking candidates rather than assuming. The answers to these questions become a map to establishing your most useful succession planning process. Write them down; they are the first page of the process document. ## The succession planning process, step by step Here is the sequence we use with clients, whether the process covers a dozen positions or a few hundred. Each step produces something the next step uses. ### Step 1: Identify key positions and their future requirements Start with positions rather than people. A key position is one where a vacancy or a poor fit would have a significant effect on results, where the knowledge or relationships involved are difficult to replace, or where the strategy over the next two to three years is likely to change what the role demands. Ask the executive team to nominate positions against those criteria, then challenge the list; a first pass often includes every direct report of every executive and misses the two technical roles that would stop shipments. For each position, record the present work requirements and the ones you expect the strategy to add. As an example, when working with a global architecture and event management firm, their goal in succession planning was to prepare the next level of owner-leaders, while maintaining organizational culture during growth. This meant that each of three regions identified roles that would be stepping points to potential principal roles. The firm prioritized roles in both client-facing positions and internal to the success of the firm. ### Step 2: Build a success profile for each key position A success profile describes the behaviors, knowledge, skills and experiences that distinguish strong performance in the position, now and into the future. Use existing success profiles, competency models or job profiles where they exist. Where they do not, interview incumbents and their managers, pull from a competency bank for similar positions (or, if working with a consultant, draw upon theirs) and use organizational data. Prioritize the items. Not every behavior, knowledge or ability is important, so force yourself away from insisting they are; in our experience, two or three items tend to be critical, with others nice to have. When we support clients in building success profiles, we often suggest including a behavior such as "keeps up with industry and role trends" so that learning is built into the role rather than added to it. Our article on [competency development](https://www.ppsinternational.net/resources/articles/is-competency-development-still-important) covers what a usable model contains. In our earlier example, the firm's holdings board conducted a senior leader survey on success factors, then conducted a facilitated workshop with PPS. Prior to that workshop, we did benchmarking and interviews of key principals, founders and others, which guided the workshop and the success profile. Entrepreneurship and being a steward of relationships were two critical competencies for the future of the firm. ### Step 3: Assess performance and potential This is the talent review. Managers bring performance data for the people in and around the key positions, and the review adds a view of potential: the person's aspiration for a larger role, their ability to grow into it and their engagement with the organization. Many organizations plot people on a nine-box grid (the 9-box) of performance against potential. The grid helps structure the conversation; it is not a decision by itself. The value is in managers calibrating their ratings against one another using the success profiles and evidence such as assessments, project results and multi-rater feedback rather than reputation. Keep the review to the key positions and the people who could fill them; a review of the whole workforce tends to consume the calendar and produce little placement. In our example, the HR leaders in each region worked with senior principals and holdings board members to conduct talent reviews as part of business planning. The competency model, along with experience from project reviews, shaped recommendations for high-potential individuals. ### Step 4: Identify successors and rate their readiness For each key position, name a pool rather than a single successor, and rate each candidate's readiness in bands the organization can act on: ready now, ready in one to two years and ready in three or more years. Note the emergency cover for each position separately, since that person may not be a long-term successor. Look at the pool as a whole for concentration, such as three positions that all depend on the same candidate, and for representation, because a pool that looks nothing like the workforce is often a sign that the assessment or the nominations are missing people. Decide now, in line with the openness decision above, what candidates are told and by whom. This step is often misunderstood and can stall succession planning. Depending upon the organization, individuals may be suitable for a variety of roles. Those who are identified early in the development process and career may receive general development, knowing no positional movement will happen for some time. In some roles, time in position to gain exposure to various parts of the business is critical. When that's the case, an organization may choose not to have defined readiness for specific roles. ### Step 5: Close the gaps with development actions The readiness rating shows the gap, and the development plan is how it closes. Each successor on the plan needs an [individual development plan](https://www.ppsinternational.net/resources/guides/individualdevelopmentplans) that lists the two or three capabilities to build, the experiences that build them and the support the person can expect. Most of that development happens on the job through stretch assignments, project leadership, acting roles and exposure to the executive team, with coaching and formal programs around it. The [70-20-10 model](https://www.ppsinternational.net/resources/articles/streamline-the-learning-options-in-your-70-20-10-model-for-learning) helps balance the mix, and our tool listing [20 ways to develop skills and knowledge](https://www.ppsinternational.net/resources/guides/tool-20-options-for-development) gives managers options beyond training. For groups of successors with similar gaps, such as first-time general managers, create a learning map for the group and run it as a cohort. Where high-potential individual contributors are heading for management, an emerging leader program before the promotion lands prepares them to lead on day one; see our [new manager development case study](https://www.ppsinternational.net/resources/case-studies/new-manager-development-a-case-study). [Coaching](https://www.ppsinternational.net/coaching) suits the ready-now and one-to-two-year candidates, where a specific behavior stands between the person and the role. ### Step 6: Make placement decisions Placement is the point of the process. When a key position opens, the succession pool gives the organization a choice among prepared candidates, and the decision is best made against the success profile rather than the organization chart. Create interview and other selection tools that measure candidates against the succession-planning-identified behaviors, so internal candidates are assessed on the same basis as any external one. Sometimes the right answer is a lateral move that builds a missing experience, and sometimes it is an external hire because the pool is not ready; an external hire is also a signal to revisit Steps 1 through 5 for that position. Support the transition with an onboarding plan for the new incumbent and a development conversation with the candidates who were not selected, who are often the successors for the next opening. Placement is also where onboarding begins; our [four-phase onboarding process](https://www.ppsinternational.net/resources/guides/a-proven-on-boarding-process) covers the first year in the role. ### Step 7: Communicate, track and review Plan, write and implement communication about the process to candidates and employees, consistent with the openness decision. Establish the tracking and monitoring systems needed to administer the components, either using software or more manual data collection; a spreadsheet with positions, candidates, readiness and development actions is enough for many organizations. Review the plan annually in a talent review and check development actions quarterly, because the follow-through on Step 5 is where the process most often stalls. Know that having a working, reliable, useful way to track the successors for key roles in your organization is more valuable than a complex, unwieldy, too-much-to-tackle process. Sometimes practical and fast are as important as having the "model" succession plan. ## Assessing your way through Even with the most targeted and streamlined succession planning process, you will find yourself considering how and what to assess. We typically see two uses for assessments: to determine who is a high-potential candidate, and to determine the developmental gaps of identified high-potential candidates. Both can be fulfilled through: - Written tests and inventories to determine knowledge, preferences or ability. - Simulations to determine use of skills and application of knowledge. - Multi-rater assessments to determine fit and perception by stakeholders. - On-the-job observation for timely and accurate feedback. - Polling of existing company measures such as performance reviews and career and other interview data. Use the following process to select appropriate assessments: 1. Determine the assessment need and purpose through structured interviews with your project stakeholders. Nothing will ensure assessment derailment faster than being misaligned on why you are assessing and what you will do with the data collected. Discuss perceptions and desires with those who are affected before choosing anything. 2. Use existing success profiles, competency models or job profiles, or develop them, to determine the areas to be assessed. 3. Research assessments for the best fit between the area to be measured and the available tools, taking into account your project parameters: time, tolerance for testing and the staff available to support administration. Our guide to [choosing leadership assessments](https://www.ppsinternational.net/resources/articles/choosing-the-right-leadership-assessments-for-your-priorities) walks through the trade-offs. 4. Benchmark the assessment with top performers and low performers to set baseline performance indicators. This simple step is often overlooked, yet it is a practical validation of whether the assessment identifies the skills, knowledge and abilities you care about. 5. Administer the assessments yourself or work with assessment providers on an administration plan. Assessments come with plenty of questions from participants, and your plan should have answers: Who will see the information? How long is it stored? Is there a passing or failing result? A few positions from our assessment work carry over to succession planning. Participants tend to trust external assessors over internal ones, not because internal resources are less skilled but because external assessors carry no history with the participants and no authority over their careers, and most organizations find the best success in separating the assessment and debrief from the use of results. Assessment centers, with live simulations and trained observers, give the most complete picture for senior and sales positions. Our [sales assessment center case study](https://www.ppsinternational.net/resources/case-studies/sales-assessment-center-for-global-sales-professionals-a-case-study) shows how one global organization used a center to give its succession planning evidence about candidates' skills and their desire for growth. Learn more about our [assessment services](https://www.ppsinternational.net/assessments). ## Align your stakeholders Work closely with your internal clients to ensure stakeholder buy-in and support. Typically this happens by: - Interviewing stakeholders within the organization for their needs and expectations of a succession planning process, and providing a written document of findings to the project sponsor. - Creating an overall succession planning strategy document and presentation that is delivered to executives and other decision makers. - Inviting and encouraging stakeholder participation in assessments and pilot groups. - Developing and conducting training with stakeholders on the purpose, roles, support needed and skills necessary to implement the process, including how to hold a development conversation with a candidate. Never neglect your stakeholders. You need their input and support, and they are generally both customers of the process you are designing and participants in it. ## Setting up the process Because setting up a succession planning system can be a project with many phases, stakeholders and political facets, some organizations choose to partner with an external firm to help build the business case and implement the chosen components. Whether the work is done internally or with a partner, it usually begins with benchmarking leaders in the same or similar industries to see how they have linked succession planning to business strategy, and with selection and placement mapping at the executive level to uncover areas for improvement, before the seven steps above are built out. Be cautious of consultants who claim to be able to handle all components of succession planning implementation well. Sometimes the best approach is to use a full or modified process, partnering with consultants who have expertise in specific areas, such as assessments or technology for administration, while the organization owns the business cadence and the decisions. ## A small-scale version If your organization has a few hundred employees, or no dedicated talent management staff, the same five components apply at a smaller scale. Here is a version we have seen work: - A list of 8 to 12 key positions agreed on by the leadership team, each with a success profile of three to five critical items. - One talent review a year, about half a day, in which the leadership team rates performance and potential for the people who could fill those positions. - A one-page successor chart with emergency cover and readiness bands. - A development plan for each successor on the plan, reviewed in the person's regular one-on-ones. - A quarterly check by the CEO or the head of HR on whether the development actions happened. Low volume also changes the development options. Where a cohort program is not practical, learning-from-experience checklists, curated micro-learning and external coaching cover most needs, and our article on [coaching at scale](https://www.ppsinternational.net/resources/articles/coaching-at-scale-when-group-coaching-makes-development-more-accessible) describes the group coaching option. ## How to tell whether the process is working Measure the process by its results rather than by completed forms. A few indicators we recommend tracking: - Share of key positions with at least one ready-now successor, and with two or more candidates in the pool. - Internal fill rate for key positions, and time to fill them. - Retention of identified successors, especially in the year after a review. - Share of development actions completed on schedule. - Performance of placed successors at six and twelve months. - Representation in the pool compared with the workforce. Our article on [measuring talent management effectiveness](https://www.ppsinternational.net/resources/articles/ways-to-measure-talent-management-effectiveness-a-few-lists) lists further measures and how to present them. ## Common pitfalls - Too much attention to forms. Elaborate templates that consume the review and leave no time for development decisions. - A single successor per position. One name is a replacement plan, and that person may leave or be needed elsewhere. - Development that never happens. Readiness ratings that do not change from year to year usually mean Step 5 was skipped. - Assessments chosen before the purpose is agreed. Instruments selected before stakeholders agreed on why they are assessing and how the data is used. - Timelines that are too short. Readiness in one to two years is realistic for most moves; a plan that expects every gap to close in a quarter may lose credibility. ## Frequently asked questions ### What are the five steps of succession planning? Most frameworks describe five steps: identify key positions, define what success in them requires, assess performance and potential to identify candidates, develop the candidates against their gaps, and place and review. Our version adds a step for success profiles and separates placement from review, which makes seven. The five components described above are the same in either count. ### What is the difference between succession planning and replacement planning? Replacement planning names a backup for a position in case of an emergency, usually a single person and usually without development attached. Succession planning builds and develops a pool of candidates over time so that a vacancy becomes a choice among prepared people. Organizations need an emergency list for every key position and a succession pool for the ones that matter most. ### How often should a succession plan be reviewed? Annually, in a talent review tied to the business planning cycle, with a quarterly check on whether development actions are happening. Positions and success profiles change when the strategy changes, so a significant reorganization, acquisition or new market is a reason to revisit Steps 1 and 2 outside the annual cycle. ### Should employees be told they are on a succession plan? It depends on the openness decision the organization makes. Open processes tend to produce candor and retention, since candidates can see a path, and they require managing expectations if the path does not materialize. Closed processes reduce that labor at the cost of trust if people learn about them indirectly. Whatever you choose, we recommend discussing the candidate's development plan openly even when the specific positions are not. ### What should a succession planning framework include? The five components (communication, position assessment, performance assessment, placement and developmental actions) plus the five design decisions about direction, timing, accountability, openness and individual discretion. A framework with those elements can be run on a spreadsheet. Software helps with administration once the elements exist. ### What is an example of succession planning in practice? A global organization ran an assessment center for its sales professionals across regions, combining simulations, a customized multi-language 360-degree instrument and structured interviews aligned to a success profile. Among the outputs was information for sales leaders and those in talent development, career planning and succession planning roles about each individual's skills, their desire for growth in role and within the organization and their development needs, which is the input a succession pool needs. The full story is in our [sales assessment center case study](https://www.ppsinternational.net/resources/case-studies/sales-assessment-center-for-global-sales-professionals-a-case-study). ## Where to start If your organization is asking "Who's next?" for more positions than it can answer, start with Steps 1 and 2 for a few key positions and one talent review; the rest of the process grows from there. PPS International Limited has designed succession planning processes, success profiles and assessment centers for organizations large and small, and we partner with clients on the pieces where an outside view helps most, such as assessments and facilitation of the talent review. Learn more about our [talent management consulting](https://www.ppsinternational.net/talent-development) and [assessment services](https://www.ppsinternational.net/assessments), or [contact us](https://www.ppsinternational.net/contact) to talk through your process. ## References 1. Maurer, R. (2024, April 17). *Succession Planning: Set Your Organization Up for Success*. SHRM. [shrm.org](https://www.shrm.org/topics-tools/news/organizational-employee-development/succession-planning--set-your-organization-up-for-success). 2. Cohen, M. (2026, January 5). *What HR Leaders Need to Know About Succession Planning in 2026*. SHRM Executive Network. [shrm.org](https://www.shrm.org/executive-network/insights/what-hr-leaders-need-to-know-about-succession-planning-2026). 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