Succession Planning Steps:

Identify the critical positions in your company.There are the obvious “C-level” players, but also consider any positions that you’ve filled in the past two years. If you’ve hired anyone during this lackluster economy, it was probably for a critical role.

Determine what skills people in those positions need.Doing this can be as simple as identifying the five top talents that a candidate has, and then matching those to a position requiring some or all of those skills.

Find and assess potential successors. Even if you don’t have a formal competency model in place, you can jumpstart your initiative by identifying the most obvious candidates. Doing so will help you create a working process.

Involve managers and leaders at all levels throughout the company. In my experience, they often know where the hidden talent lies outside the “inner circle,” including the excellent qualifications of an underemployed individual.

Commit to developing internal talent and monitoring their progress.It’s more cost effective to promote from within, and I’ve found this often results in better leadership.
Creating a succession plan doesn’t have to bog you down as a business owner. By following these steps, you can concentrate on selecting the right candidates who will provide the best future for your organization.​

Step 1: Identify critical positions

Step 2: Identify competencies

Step 3: Identify succession management strategies

Step 4: Document and implement succession plans

Step 5: Evaluate Effectiveness

It is important to systematically monitor workforce data, evaluate activities and make necessary adjustments.