SUCCESSION PLAN MUST-DOS

Whether you operate a small family business or lead a mid-sized organization, leadership transitions are inevitable. Yet many local companies admit they haven’t formally prepared for who will take the reins when key leaders retire, resign, or move into new roles. Effective succession planning isn’t about predicting the future—it’s about preparing for it. The most successful organizations follow a set of core practices to ensure they’re ready when change occurs.

Here are nine best practices that can strengthen your succession planning process and help safeguard your organization’s future.

1. Start Early and Think Long-Term
Succession planning is not a project you complete in a single meeting. It’s a long-term strategy that takes time and energy. Ideally, planning begins years before a transition occurs, allowing future leaders time to develop the capabilities and experiences they need. Starting early also reduces the stress and rush that accompany unplanned leadership changes.

2. Make It a Leadership Priority
The most effective plans include active involvement from senior leadership. Their involvement ensures alignment with business strategy and accountability. When current leadership understands the importance of succession planning and supports the process, the entire organization follows.

3. Build a Strong Talent Pipeline
Instead of simply identifying replacements for one or two key positions, build a pipeline of emerging leaders at multiple levels. A strong internal bench reduces turnover, strengthens engagement, and ensures your organization is never caught off guard when unexpected situations occur.

4. Give Ongoing Feedback
Future leaders need clarity about expectations, strengths, and developmental areas. Regular feedback helps emerging leaders refine their skills and stay engaged with their career trajectory. Feedback should include honest conversations about readiness, timelines, and opportunities for growth.

5. Look Both Internally and Externally
Internal candidates ensure continuity and cultural alignment, but external candidates can bring fresh perspectives that spark innovation. A balanced approach helps your organizations adapt to changing business needs while preserving what makes you strong.

6. Prepare for the Unexpected
Not all transitions are planned. Sudden departures due to illness, resignation, or personal matters can create operational disruptions. Developing emergency succession plans, especially for critical roles, ensures that your organization remains stable even during unforeseen events.

7. Keep the Plan Flexible
Your organizational needs will evolve, and your succession plan must evolve with them. Review the plan at least annually to ensure it still aligns with your strategic priorities, growth goals, and the current talent landscape.

8. Use Technology and Data
Using talent analytics and competency assessments can provide objective data on leadership readiness. These tools help you evaluate performance, identify skill gaps, and support more strategic decision-making.

9. Celebrate and Learn
Recognize successful leadership transitions and highlight what worked well. At the same time, evaluate bumps in the road. Every transition offers lessons that can strengthen your future succession efforts.

Leadership transitions don’t need to be stressful or disruptive. By embracing these best practices, organizations can create a thoughtful, proactive succession plan that supports stability, growth, and long-term success. Succession planning is not about anticipating a crisis—it’s about building a stronger, more resilient future. The best time to start? Right now.

The views expressed are those of the author(s) and do not necessarily represent those of the Greater Rockford Chamber of Commerce.