business succession plan sample

Buying and Selling a Business | Templates

Succession Planning Template & 5 Steps to Write a Succession Plan

Published October 14, 2019

Published Oct 14, 2019

WRITTEN BY: Robert Newcomer-Dyer

A business succession plan includes step-by-step instructions that establish procedures in the event a business owner or key employee leaves the business. Our succession planning template helps business owners as they answer questions like who will take over the business, how long will it take, and what standard operating procedures need to be passed on.

There are five common steps involved in succession planning:

• Timeline of succession
• Determining your successor
• Formalize your standard operating procedures (SOPs)
• Value your business
• Fund your succession plan

Download Succession Planning Template

Click below to download our succession plan template as a DOCX or PDF:

• Download as PDF
• Download as DOCX

How Succession Planning Works

Succession planning is the set of events, timelines, and standard operating procedures that are established ahead of a change of ownership in a business. Business owners can create a succession plan in a number of ways, including by following this succession planning template, as well as by engaging a professional who’s well-versed in the process.

Who Should Create a Succession Plan?

Any business owner with a successful, thriving business should consider creating a succession plan. Often thought about in the context of retirement or sale of a business, a succession plan is also a critical tool in the event of untimely death or illness. A properly constructed succession plan acts like a will for your business, ensuring the best interests of the business are carried out.

When to Create a Succession Plan

Business owners wondering when to use this succession planning template to create a plan might wonder when they should get started. Much like a personal will, the answer depends on a variety of factors, but generally comes down to as soon as possible.

Creating a succession plan takes time and effort, and answering the questions accurately is not easy. For this reason, many business owners start planning for succession at least five to six years before a transition. Creating a succession plan should be considered as a contingency in case of death, illness, or other circumstance that creates an unexpected need for transition.

Succession Planning Resources

Finding help with succession planning may mean working with your current accounting firm (provided they have experience with helping to develop succession plans). The amount of help you need will likely scale up with the urgency of your succession planning needs, as well as the size and complexity of the business. Consider whether to bring in a temporary accounting and finance professional, or hire an accounting firm to assist you.

Some resources you can tap to help you with succession planning are:

As one of the accounting industry’s “Big Four,” PricewaterhouseCoopers (now doing business as PwC) is a firm with extensive experience in succession planning. The company’s self-described focus on small, privately held businesses minimizes the risk of becoming just another number and means it commonly deals with the sort of obstacles that you’ll encounter.

SCORE , the nation’s largest network providing small business mentoring, has developed a quick guide to succession planning. The real value is that small business owners can apply to be matched with mentors who offer their assistance on a volunteer basis. For business owners in need of simple succession planning help, this option is worth consideration.

Local Accountant

Small business owners may wish to consider working with a local accountant (provided that accountant is well versed in succession planning). Entrepreneurs who choose this route can ask around in their personal network, tap in to their local Chamber of Commerce or other local business support groups, or search for a certified public accountant in the directory provided by the American Institute of Certified Public Accountants.

The Five Steps to Writing a Succession Plan

Writing a succession plan can be a daunting task. Indeed, many business owners put it off because they’re not ready to tackle the complexities. We’ve narrowed the process down to five simple steps to direct you along the way, including choosing your successor and determining whether to sell your business using life insurance, an acquisition loan, or other methods.

The five common steps to preparing a business succession plan template are:

1. Timeline of Succession

There are two key types of succession plans: an exit succession plan and a death-or-accident succession plan. You may wish to write a death-or-accident succession plan well in advance of when you think you’ll need it to protect your business and successors in the event of unanticipated events. An exit succession plan should be written when you have a specific plan to transfer ownership of your small business.

The two most common types of succession plans are:

• Exit succession plan: A plan to transfer ownership on a specific date, e.g., at retirement.
• Death-or-accident succession plan: A plan for one’s business in the event of their death or disability.

While an accident plan should be considered at any age, an exit succession plan should be written when you are within several years of retirement or wish to otherwise exit the business. When writing an exit succession plan, you should have a specific date that you would like to transfer the business, and indicate whether you will remain involved in the business post-succession or prefer a clean separation.

Template Tip

On the succession planning template, answer all the questions in section one. If you’re writing this succession plan to exit your business on a known date, fill out any remaining details, including how long you expect the transition to last.

2. Determining Your Successor

A highly important aspect of writing a succession plan is choosing who will take over the business. Many business owners plan to have a family member, such as a child, take over the business. Other common choices include a business partner or key employee in the business. And of course, an outside buyer is always a possibility.

Common successors business owners choose are:

• Family members
• Key employees
• Outside buyers

Choosing a successor may be difficult, and requires considering what is in everyone’s—including the business’—best interest. While keeping the business in the family may seem like a clear choice, keep in mind that second generation businesses have a high failure rate. For this reason, many business owners choose instead to sell the business and provide a cash inheritance for their family.

Consider filling out profiles for at least three potential candidates. This will give you a good preliminary comparison of everybody’s skill and experience. Even if you’re already set on a candidate, you may wish to have a backup plan in the event the person leaves your business or doesn’t want to become an owner.

3. Formalize Your Standard Operating Procedures (SOPs)

As a small business owner, you should understand the importance of recording and formalizing day-to-day functions. Standard operating procedures should be documented for your managers and employees to reference, as well as any future owners of the business. Important items to document may include a daily checklist of opening and closing procedures, training for new employees, and a performance management system .

SOPs vary from business to business, but often include the following items:

Common Standard Operating Procedures

In our succession plan template, we’ve provided a checklist for these items—feel free to add or remove any, if necessary. Once you have completed an up-to-date document, attach it to your succession plan and check it off the list.

4. Value Your Business

Figuring out the value of your business should happen early—and regularly. It’s an unfortunate fact that many business owners tend to overvalue their enterprise, and these misjudgments can snowball into financial errors when planning for retirement.

There are several ways you can determine the value of your business, from using a simple business valuation calculator to provide a rough estimate, to following more advanced methods for how to value a business , as well as hiring a professional appraiser. You may also consider working with a company that offers business valuation services, such as BizEquity or Guidant Financial .

A good practice is to consider the lowest price the business should sell for. When the business is eventually listed for sale, it may take a long time to find a buyer who is willing to pay your asking price. The succession plan should provide stipulations regarding how long to wait before dropping the price, how much to lower the price, and the lowest acceptable offer.

5. Fund Your Succession Plan

Few buyers out there have enough liquid cash to pay for your business upfront. This is why every succession plan needs a specific plan for how the buyer will make the purchase, whether it’s a loan, installment payments, or other option. The last thing you want is to reach your retirement date, or triggering event, and find that your chosen successor has no way to afford your business.

This is also why your funding plan will often need a buy-sell agreement. This is a legal document in which your buyer agrees to a specific course of action (like taking out a loan or life insurance policy) in order to afford the purchase. Once you’ve settled on a specific method of funding, make sure you meet with a legal professional to draft your buy-sell contract.

Common Succession Plan Funding Options

Life insurance.

Most commonly used when a family member or co-owner is taking over the business, a life insurance policy can help your successor purchase the business from you or your heirs. Contrary to how it sounds, life insurance isn’t only used in the event of one’s untimely death. Permanent life insurance builds cash value that can be taken out at any time, so it can also be used in the event of retirement, disability, or any other triggering event.

Life insurance arrangements are common in family successions, especially when you may have multiple children, but only one is taking over the business. With your chosen successor as the beneficiary, a life insurance payout can enable them to purchase shares from your other children, thus leaving everyone with some compensation and financial security.

Acquisition Loan

An acquisition loan is money borrowed by the buyer in order to purchase the business. This is common when a key employee or outside party is taking over and they need some funding to afford the purchase. Buyers can typically get 70% to 80% of the purchase price financed from a bank or the Small Business Administration (SBA) —which is great news for sellers who want to be paid in full upfront.

Acquisition loans are secured against future profits of the business. While this makes them a generally reliable option, it also means a bit of work for the seller. Prior to the purchase, you’ll need to provide a lot of details about your business for the bank’s due diligence. Even then, however, the loan is not guaranteed. Pre-approval can provide some security, but it would need to be undergone regularly (every six to 12 months) up until the transfer date or triggering event.

Seller Financing

Seller financing is when the buyer pays you back gradually over time. This is one of the easiest and most flexible arrangements, as the business owner and buyer can set whatever terms they like. Most agreements involve a down payment of 10% or higher, followed by monthly or quarterly payments with interest until the purchase is paid for in full. Again, however, the exact terms can vary widely.

The key downside to seller financing is the time it takes to get paid back. Especially if you’re relying on the sale to fund your retirement, a 20-year term may be less than ideal. However, given the flexibility of seller financing, it can be possible to find an arrangement that works for everyone.

Business Succession Planning Tips From the Pros

We asked industry experts in succession planning to provide some tips for business owners thinking about creating a succession plan. Choosing the right successor is a critical step, as is ensuring that you have realistic expectations throughout the process. Many business owners also ask themselves whether they should consider creating a succession plan.

Some tips when creating a business succession plan are:

Groom Your Successor Ahead of Time

Ray mckenzie, founder & managing director at red beach advisors.

“A majority of businesses do not have a formal business succession plan and never anticipate it being needed.

“The most common mistake business owners make is they retain and keep information only for themselves. This can be signatory rights, passwords, access, or key phrases.

“Review your company succession plan every six months and every time a critical employee leaves the business.”

Keep Your Expectations Realistic

Ed alexander, esq., founder at alexander abramson pllc.

“The biggest mistake small business owners make in their succession plans (aside from not having one) is having unrealistic expectations.

“First, business owners regularly have an unrealistic conception of what their business is worth. It’s their baby, and they have an emotional connection to it, but this connection can’t be laid out in a profit and loss statement.

“Second, Family Business Institute data has shown that 88% of small business owners believe that transferring the business to their children is a viable succession option. The reality is that only 30% of small businesses will pass to a second generation, and only 12% to a third generation.”

Consider the Risk of No Succession Planning

Patrick hicks, head of legal for trust & will.

“Having a business succession plan becomes more important if your business has valuable assets or has employees. If you operate your own business with just yourself and no business assets, the downsides of having no plan may be smaller.

“If you have employees, consider who will be able to make payments to those employees and who will carry on operations after your death.

“Machinery, equipment, materials, intellectual property, and customer lists can all be valuable assets—the brand and reputation associated with your business—that can all disappear if you don’t have a plan in place to deal with those assets.”

One of the most common mistakes business owners make in succession planning is failing to review their plan regularly. Time changes many things, and in order for your succession plan to be effective, it needs to be reviewed regularly and updated to reflect any changes. These could be company changes, tax law updates, changes in valuation, or new industry developments, among other things.

For family-owned businesses, you’ll also need to consider aspects such as changing family dynamics—do all members have the same desire regarding what to do in the future, or are all key players still with the business? It’s essential that business owners update and adjust their business plan to reflect changes such as these.

Bottom Line

Often, the most difficult part of succession planning is answering difficult questions. What unexpected events should you prepare for? Who will take over your business? How will you compensate yourself, your spouse, or your children? You can answer these questions with the help of our succession planning template. You may also wish to engage legal or financial experts with experience in succession planning.

About the Author

Find Robert On LinkedIn

Robert Newcomer-Dyer

Robert has over 15 years of experience in sales leadership, finance, and business development. He recently spent six years leading a team of small business financing professionals, facilitating the deployment of critical capital to over 9,000 small businesses across the US.

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leadership development

A Guide to Building the Best Succession Plans (+ Examples)

Dive into a detailed succession plan example & learn how to cultivate future leaders. Get tips & tools for smooth transitions & sustained growth.

Matthew Reeves

CEO of Together

Published on 

February 6, 2024

Updated on 

Time to Read

mins read time

Picture this: your CEO announces their retirement. The board scrambles to find a suitable replacement. Morale dips. Uncertainty hangs heavy in the air. Sound familiar? 

It's an all-too-common scenario of unplanned leadership transitions, a recipe for disruption and lost momentum. In fact, 49% of companies worldwide lack a formal succession plan, leaving them vulnerable to talent gaps and costly instability.

But it doesn't have to be this way. 

Succession planning isn't a luxury, it's a strategic lifeline. It's identifying and nurturing your future leaders, not before the storm, but while the sun shines. It's ensuring a smooth handover of the baton, preserving institutional knowledge, and guaranteeing your organization's continued growth—even when the inevitable winds of change blow.

Ready to break free from the reactive dance of unplanned transitions? Let's explore the power of succession planning and uncover the tools to build a future-proof leadership pipeline . 

Understanding what succession planning is

Ever heard of a company built like a house of cards? One key departure, and the whole thing crumbles. That's the scenario succession planning aims to prevent.

Simply put, succession planning is building the bridge between your present leadership and a vibrant future. It's identifying and nurturing talent – your high-potential stars – to seamlessly step into critical roles when the time comes. Think of it as inoculating your organization against talent shock.

Why is this so crucial? Consider this:

• Deloitte reports 86% of leaders believe succession planning is an "urgent" and "important" priority, yet only 13% believe they do it well.
• Firing a CEO, without a succession plan in place, costs companies an average of $1.8 billion in shareholder value, whether the new CEO is from inside or outside the company.
• McKinsey research reveals that unsuccessful leadership transitions lead to 20% lower employee engagement and 15% lower team performance.

Think of a well-executed succession plan as your secret weapon:

• It fosters organizational stability and smooth transitions, safeguarding against knowledge gaps and disruption.
• It attracts and retains top talent, who see clear pathways for growth and development within the company.
• It cultivates a culture of learning and continuous improvement, empowering your future leaders to excel.
• It boosts employee engagement and morale, knowing the organization invests in their long-term potential.

In a nutshell, succession planning isn't just about filling empty chairs; it's about building a thriving legacy. It's the insurance that your organization not only survives, but thrives, even as the leadership baton passes to the next generation.

Ready to learn how to craft your own winning succession plan? Buckle up, the next section explores the essential ingredients for success!

🛤️ Also read our Guide on The 4 Stages of Succession Planning

9 key elements of an effective succession plan.

A common misconception around succession planning is that it's simply a wish list – a hopeful glance toward the future with little substance or strategy. But in reality, it's far more than that. It's a meticulously crafted roadmap that guides an organization through the inevitable twists and turns in its leadership journey.

So, where do you begin in crafting this vital roadmap? 

The answer lies in breaking down the essential components that make it truly effective. Imagine these components as individual building blocks, each carefully chosen and strategically placed to form a sturdy and reliable path toward a thriving future. 

Let's delve into these critical elements, dissecting their roles and exploring the tools and strategies you can employ to ensure your succession plan isn't just a pipe dream, but a tangible bridge to a prosperous tomorrow.

1. Identification of key roles

In a successful succession plan , identifying key roles is crucial. This isn't about randomly selecting positions to fill; it's about discerning the very engines that drive your organizational ship, the positions that hold the greatest influence and impact. It requires critical thinking and strategic foresight, looking beyond the immediate present and anticipating future needs and growth areas. 

For instance, if you're a tech company, your lead software developer or project manager may be key roles. Identify these roles early on to ensure a smooth transition when changes occur.

2. Talent assessment

Once you have identified the key roles, the next step is talent assessment , the delicate yet crucial task of discovering the hidden gems within your talent pool. 

Think beyond resumes and experience – look for hidden gems with the right blend of skill, potential, and leadership qualities. Think diverse perspectives and fresh ideas that can fuel innovation and growth.

3. Communication strategy

Next, we build the superstructure of communication and development . Transparency is key – keep your crew informed about the plan and their potential role within it. Hold regular meetings, create informative materials, and foster an open dialogue to build trust and engagement , while celebrating milestones along the way to motivate and inspire. 

4. Leadership development

Imagine a seasoned leader stepping down, leaving behind a vacuum that cripples your organization. Leadership development equips potential successors with the skills, confidence, and experience to step into those shoes with minimal disruption.  

So, how can you invest in leadership development ? The options are varied and adaptable:

• Tailored training programs - Design programs that cater to individual strengths, weaknesses, and leadership styles.
• Stretch assignments - Challenge individuals with projects outside their comfort zone to push their boundaries and unlock hidden potential.
• Conferences and workshops - Provide access to external knowledge and networking opportunities to broaden perspectives and learn from industry experts.
• Leadership rotations - Give individuals exposure to different departments and functions to develop a holistic understanding of the organization.

5. Mentorship programs

Mentorship programs are a vital ingredient in any robust succession plan. They bridge the gap between experienced leaders and emerging stars, weaving threads of knowledge, wisdom, and practical experience to prepare the next generation for success.

The power of mentorship isn't just anecdotal. It's more than just learning the ropes; it's a knowledge-sharing ecosystem where seasoned veterans impart their hard-won insights, helping rising stars navigate the complexities of leadership, build confidence, and refine their skills.

6. Emergency succession plan

No matter how meticulous your planning is, the future can hold surprises. Sudden leadership departures or unforeseen circumstances can disrupt even the most stable organizations. That's why every robust succession plan needs a safety net: a comprehensive Emergency Succession Plan ready to be activated at a moment's notice.

Think of it like a fire drill for your organization. Just as you regularly practice for an emergency evacuation, the Emergency Succession Plan outlines the immediate steps and responsible individuals in case of critical leadership disruptions. This ensures a swift and decisive response, minimizing chaos and keeping the organization on track even amidst turbulence.

Regularly review and update your emergency plan to reflect personnel changes, organizational shifts, and evolving risks. Conduct simulations to identify potential gaps and refine your response mechanisms. 

7. Succession planning committee

A comprehensive succession plan isn't just about identifying future leaders and offering training; it requires careful execution and oversight. That's where the Succession Planning Committee steps in, acting as the driving force behind the plan's implementation and success.

Here's how this committee fuels your succession plan's success:

• Gathering diverse perspectives - The committee isn't a one-man show; it's a melting pot of knowledge and experience. Including representatives from HR, senior leadership, and even key stakeholders ensures you're not missing any crucial angles. 
• Avoiding bias and blind spots - We're all human, which means we have our own biases and blind spots. A well-structured committee helps mitigate these risks, ensuring a fair and objective approach to talent selection and development.
• Building trust and transparency - The committee acts as a bridge between leadership, HR, and the wider organization, fostering transparency throughout the process. This helps build trust among employees, who feel their voices are heard and that the selection process is fair and well-considered.

8. Integration with performance management 

Think of performance management and succession planning as two sides of the same coin. By integrating them, you create a powerful engine for talent development, ensuring a smooth transition of leadership and building a future-proof organization that thrives on its people's potential.

Here’s how you can do this:

• Align development with goals - Use performance reviews to identify strengths and weaknesses of potential successors, aligning their development plans with the specific skills and knowledge needed for future leadership roles. This way, you're not just giving them generic training; you're providing targeted development that directly contributes to your succession plan's success.
• Go beyond annual check-ins - Foster a culture of ongoing feedback and development where managers and mentors regularly provide constructive criticism and guidance. This continuous feedback loop helps individuals stay on track, identify areas for improvement, and build the confidence needed to step into leadership roles.
• Track progress and make adjustments - Use performance management data to track the development of potential successors, assess the effectiveness of your training programs, and identify any gaps that need to be addressed. This ongoing monitoring allows you to adjust your plan as needed, ensuring it remains relevant and effective in the ever-changing business landscape.

9. Regular review and update

Just like your organization adapts and grows over time, your succession plan needs to be a living document, constantly evolving to stay relevant. Regular review and updates are crucial to ensure you have the right leaders ready to step in whenever needed.

Here's how you can embrace continuous improvement in your succession planning:

• Regular reviews - Schedule frequent reviews, ideally annually or even bi-annually, to assess your plan’s effectiveness and identify areas for improvement.
• Data-driven decisions - Gather feedback from employees, stakeholders, and leadership teams to understand their perspectives and concerns. Use performance data and industry trends to inform your decisions about changes and updates.
• Talent pool refreshment - Regularly assess your pool of potential successors and identify new individuals who possess the skills and qualities needed for future leadership roles. Don't rely on the same shortlist year after year.

Remember, a dynamic and adaptable succession plan is an investment in your organization's long-term success. By prioritizing continuous improvement, you ensure you have a pipeline of talented individuals ready to lead when the time comes, navigated by a plan that reflects your evolving needs and keeps you ahead of the curve. 

Succession plan example 

Now that we've explored the key components and principles of effective succession planning, let's put theory into practice. We'll walk you through a succession plan example for a fictional company, highlighting how these elements come together in real-world situations. 

Remember, this is just a jumping-off point, adapt and customize it to fit the specific needs and structure of your organization. 

1. Succession plan overview

• Ensure continuity of leadership and knowledge transfer in key roles to maintain business growth and sustainability.
• Protect the organization from disruptions caused by unexpected departures.
• Develops a pipeline of talented leaders for future growth.
• Motivates employees by providing career development opportunities .

2. Key Positions

• CEO (responsible for overall strategy and vision)
• Head of Operations (looks after production and supply chain)
• Head of Sales and Marketing (drives customer acquisition and revenue growth)
• Chief Technology Officer (leads innovation and technology development)

3. Talent Assessment

GreenGrow Gardens employs a three-pronged approach to assess the potential for each key position:

Performance reviews

GreenGrow's performance reviews delve deeper, assessing qualities like communication, problem-solving, and collaboration. Employees at all levels, including peers, direct reports, and even clients, provide anonymous feedback on potential successors. This multi-dimensional, 360-degree feedback helps uncover hidden strengths and weaknesses often missed in traditional reviews.

Leadership potential assessments

Beyond resumes - GreenGrow utilizes validated leadership assessments to measure cognitive abilities, emotional intelligence, strategic thinking, and adaptability.

Customized profiles - GreenGrow uses customized profiles to tailor development programs and mentorship opportunities to maximize each potential leader's growth potential.

Example in action 

Assessing Jessica Davis for Head of Sales and Marketing

Performance review - Jessica consistently surpassed sales targets while fostering a positive and collaborative team environment. Her innovative marketing campaigns have gained national recognition, showcasing her strategic thinking and creativity.

360-degree feedback - Jessica received high praise for her communication skills, ability to motivate others, and willingness to mentor junior team members. Clients commended her customer focus and understanding of their needs.

Leadership potential assessment - Jessica's assessment revealed strong analytical skills, strategic thinking, and a high score in adaptability. However, it also highlighted a potential tendency to micromanage.

Based on this multifaceted assessment, GreenGrow identifies Jessica as a strong candidate for Head of Sales and Marketing. Her development plan will focus on empowering her team, delegating tasks effectively, and further honing her strategic leadership skills.

GreenGrow offers a range of tailored development programs to ensure that its future leaders have the skills, knowledge, and experience they need to thrive in their roles. Some examples include:

• Mentorship pairings with senior leaders
• Executive coaching
• Leadership training courses
• Stretch assignments to test readiness for higher-level roles

Example in action

Development plan for Jessica

• Executive coaching to enhance strategic thinking and decision-making.
• Leadership training program focused on effective team management and conflict resolution.
• Participation in industry conferences and networking events.
• Lead a cross-functional project to launch a new product line, demonstrating the ability to drive innovation and collaboration.

5. Communication strategy

GreenGrow Gardens believes that transparency and trust are essential for a successful succession plan. Here's how they communicate openly with employees and stakeholders:

1. Unveiling the roadmap

• Town hall meetings - Mr. Thompson, the CEO, holds regular town hall meetings where he openly discusses the succession plan, its purpose, and the benefits for both employees and the company.
• Internal newsletter - A dedicated section in the company newsletter features updates on the progress of the plan, highlighting individuals like Jessica Davis and their development journey.

2. Tailoring the message

• Management training - Senior managers are trained on effectively communicating the plan to their teams, addressing potential concerns and anxieties with clarity and empathy.
• Stakeholder briefings - Mr. Thompson personally meets with key stakeholders, including investors and board members, to explain the plan's details and rationale, addressing their specific interests and concerns. 

3. Fostering engagement

• Interactive Q&A sessions - Following announcements, GreenGrow offers dedicated Q&A sessions where employees and stakeholders can raise questions and receive clear answers. 
• Internal social media platform - A dedicated forum on the company's internal social media platform allows employees to discuss the plan, share feedback, and offer suggestions.

4. Celebrating milestones

• Internal recognition - As individuals like Jessica Davis progress through their development programs and achieve milestones, GreenGrow celebrates their successes through company-wide announcements and internal awards.
• Success stories - The company newsletter and internal communications channels regularly feature success stories of individuals who have benefited from the succession plan, showcasing how it empowers employees to grow and reach their full potential. 

6. Succession timeline

GreenGrow Gardens understands that a clear and realistic timeline is key to a successful succession plan. Here's how they define their roadmap for Jessica Davis' potential transition to Head of Sales and Marketing:

Year 1: Building the Foundation

Year 2: Refining and Preparing ‍

This timeline is a dynamic roadmap, subject to adjustments based on Jessica's development, business needs, and unexpected circumstances. 

7. Contingency planning

GreenGrow Gardens recognizes that surprises can strike. To ensure seamless operations even in the face of unexpected departures or disruptions, they have a robust contingency plan in place. This plan includes:

• Temporary assignments - Key responsibilities can be temporarily redistributed among senior team members while a more permanent solution is found.
• External recruitment - If internal talent isn't readily available, GreenGrow explores external recruitment options to fill essential roles quickly.
• Internal promotions - When possible, qualified internal candidates are considered for promotions, offering career advancement opportunities and minimizing disruption.

8. Monitoring and evaluation

GreenGrow Gardens understands that continuous monitoring and evaluation are crucial for a future-proof succession plan. Here’s how the company keeps a watchful eye on its succession plan.

• Progress checks - Development programs and talent readiness are regularly assessed, ensuring individuals stay on track and the plan remains relevant.
• Adaptive approach - The plan isn't set in stone. Adjustments are made based on progress, feedback, and evolving business needs.

9. Documentation and knowledge transfer

GreenGrow Gardens knows that effective knowledge transfer is a continuous process, not a one-time event. The company cultivates a culture of learning , collaboration, and wisdom sharing by following these diverse strategies:

• Detailed job profiles - Beyond responsibilities, each key position has a comprehensive profile outlining crucial skills, decision-making frameworks, and industry best practices.
• Process playbooks - Every critical operational and marketing process is meticulously documented, step-by-step, with flowcharts and visuals for clarity.
• Wisdom vault - GreenGrow Gardens has established a centralized repository of essential documents, historical reports, and even video recordings of seasoned leaders sharing their insights. This "wisdom vault" is accessible to all, fostering a culture of learning and preserving valuable knowledge for future generations.
• Shadowing - High-potential individuals like Jessica Davis shadow mentors like Mr. Thompson, observing their daily routines, decision-making processes, and client interactions. This firsthand experience provides invaluable insights and builds confidence for future leadership roles.
• Cross-pollination through teams - Cross-training programs break down departmental barriers, allowing individuals to gain firsthand experience from colleagues in other functions. 
• Mentorship circles - Experienced leaders like Mr. Thompson act as mentors, guiding and supporting potential successors through personalized advice, problem-solving sessions, and regular feedback.
• Internal knowledge portal - GreenGrow has developed a user-friendly online platform where employees can access documented knowledge, share best practices, and learn from each other. 

This is a hypothetical succession plan example, and a real succession plan would include more specific details and timelines for each element.

HR's role in succession planning

Succession planning isn't just about filling chairs when leaders move on; it's about strategically cultivating future talent and ensuring seamless transitions for ongoing success. In this crucial endeavor, HR emerges as the architect, playing a multi-faceted role in designing and implementing robust succession plans.

HR wears many hats in this process:

• Talent scout - They identify high-potential individuals across the organization, assessing skills, leadership qualities, and potential through performance reviews, assessments, and even 360-degree feedback.
• Development facilitator - HR collaborates with leadership teams to tailor development programs for potential successors, including mentorship pairings , executive coaching, and leadership training courses.
• Process architect - They work with leaders to define key roles, document responsibilities, and establish clear talent pipelines for various positions, ensuring a smooth flow of talent as needs evolve.
• Communication champion - HR ensures open communication throughout the process, informing employees and stakeholders about the purpose, benefits, and timeline of the succession plan, fostering trust and engagement.
• Change navigator - When unexpected challenges arise, HR helps navigate disruptions and adapt the plan accordingly, ensuring continuity and minimizing uncertainty.

For a truly successful succession plan, collaboration between HR and leadership teams is paramount. Here's how they can work together:

• Leadership buy-in - HR educates leaders on the importance of succession planning, securing their commitment and active participation. This ensures the plan receives the resources and support it needs to thrive.
• Strategic alignment - HR collaborates with leadership to define the organization's future direction and identify the skills and qualities needed for future leaders. This alignment ensures the plan develops leaders who are equipped to navigate the company's future challenges and opportunities.
• Leadership development - HR partners with leaders in designing and delivering leadership development programs. Leaders can share their own experiences and insights, while HR provides expertise in training methodologies and program evaluation.
• Mentorship matching - HR facilitates the matching of potential successors with experienced mentors within the organization, leveraging the wisdom and guidance of current leaders to nurture the next generation.

By proactively embracing their role and fostering strong collaboration, HR can ensure that succession planning is not just a box-ticking exercise, but a strategic investment in the future of the organization. By nurturing a pipeline of well-prepared leaders, HR empowers companies to navigate change, overcome challenges, and secure their ongoing success.

Securing your organization’s future with Together

While the daily grind of operations might keep succession planning on the back burner, its importance cannot be overstated. It's not just about filling empty chairs, it's about cultivating future-proof leaders who drive sustainable growth and navigate the ever-evolving business landscape.

Consider the tangible benefits: smoother transitions, minimized disruption, talent retention , and even a competitive edge when attracting top talent. The example we explored, GreenGrow Gardens, showcased how a well-designed plan fosters employee engagement, nurtures future leaders, and ultimately secures the company's continued growth.

But building an effective plan takes more than good intentions. It requires dedicated resources, expertise, and efficient tools to manage and optimize the process. This is where Together, a powerful mentoring platform, enters the picture.

Together streamlines every step of your succession planning journey:

• Talent identification - Utilize data-driven insights and assessments to identify and track high-potential individuals across your organization.
• Development roadmap - Design personalized development plans, match mentors with successors, and track progress through intuitive dashboards.
• Knowledge transfer - Facilitate seamless knowledge sharing through structured mentorship programs and collaborative tools.
• Communication and visibility - Keep everyone informed with built-in communication features and transparent progress reports.

Embrace the future, invest in your talent, and unlock the full potential of your organization. Take the first step by exploring Together : a platform designed to empower your HR team, engage your employees, and cultivate the future leaders who will take your organization to new heights.

Book a demo today and learn how Together can transform your succession planning into a powerful engine for sustained growth and a vibrant future.

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A Beginner's Guide to Business Succession Planning for Small- and Mid-Size Business Owners

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Having a business succession plan in place can minimize fallout if you lose a key employee. While it takes some extra analysis and foresight — and some transparent communication and documentation — it can pay off when a transition to new leadership goes smoothly.

As you run your business, you're likely focused on the day-to-day challenges. But time can go by quickly, and it's crucial to plan the next generation of leaders.

Proper business succession planning — that is, identifying and developing employees to step into future roles — can set you up for success down the road while also improving your employee retention rates and engagement now.

"It's a strategic approach to thinking about scenarios and plans to ensure smooth transitions between current and future incumbents," says Jay Caldwell, chief talent officer at ADP.

Let's explore the basics of business succession planning, including the benefits of doing it, key steps to take to set it up and the challenges you may encounter (and their solutions).

What is business succession planning?

Succession planning primarily focuses on how you'll replace essential leadership roles in your organization, including the owner and CEO. It may also include guidelines for continuity in other positions that are critical for success or difficult to fill. The idea is to start training and nurturing the next round of talent so you aren't left scrambling if a key employee quits, retires, gets sick or passes away.

Your succession plan may also include operational exit planning detailing what you'd like to happen when you or other top stakeholders retire. Documentation can settle decisions ahead of time such as whether you'd like to leave the business to family, sell it to another company or set up a buy-out with your employees.

"Every business owner wants to minimize distractions to their operations and goals," Caldwell notes. "Changes in leaders can be quite disruptive, particularly if there is not a plan in place."

Succession planning keeps your business running smoothly even when key employees leave. This is one just of the reasons to make business succession planning a priority .

Succession planning can help you find candidates and retain them

However, strategic workforce planning is sometimes not on the radar for small and mid-size business owners. Only 35 percent of these businesses have started the process, and of this group, only 8 percent have a complete written plan, according to 2022 research from MassMutual .

"It could be because of the demands of their operations, a lack of development resources or simply overlooking the importance of planning for transitions," Caldwell observes.

One common issue for smaller organizations when it comes to this type of planning is that you usually don't have a broad bench of talent to draw on. However, if you're thinking about the future of your business early on, you're more likely to ensure a viable candidate has been trained, whether internally or outside your organization. It can keep you from having to do a sudden — and possibly costly — hiring search. It also saves you and other leadership from working overtime to handle the role while looking for a replacement.

Your succession plan can prevent the loss of critical knowledge after someone leaves and conflict between employees suddenly vying for the open position. If your family members are part of the business, your succession plan can even guide the next generation of owners.

Finally, a succession plan has the potential to improve your employees' performance today. That's because your top contenders will stay committed to your organization if they know they're lined up for a role and help future-proof your management team .

"Seeing a clear future with the company is a top driver of retention," says Caldwell. "Establishing and following through on development action plans make succession candidates feel challenged and engaged, which can help ensure they are emotionally committed to doing their best work." He adds, "These are your best people and would be very valuable to your competitors, so succession plans can help protect your most important asset!"

Key aspects to have in a business succession plan

Because every business needs a unique plan, there aren't pre-made blueprints. But you can take several common steps to ensure your business succession covers the major points:

• Identify priority roles. "In a world of finite time and resources, it's unlikely you can have a plan for all roles," says Caldwell. "Pick the ones that have the most significant impact on your business."
• Define what is needed for each role. Consider the required experiences, knowledge, skills and behaviors to succeed in the short and long term. Clarity is a key part of the succession planning process .
• Find possible succession candidates for each role. Look for up-and-coming leaders in your organization, external candidates and family members. Consider where they stand right now versus the position's ideal requirements and what training or skills they will need.
• Discuss career aspirations with your candidates. Ask about their future career goals and if they see themselves in these higher positions. Also, ask what they might need to grow into these roles.
• Set an action plan for developing future candidates. Think of the training, exposure, relationships or experiences that you can offer for these roles in the near term. For example, you could have the successor candidate fill the role temporarily while the current employee is out for a limited time.
• Estimate when transitions may occur. Consider when you or other leaders want to start stepping down. Your plan could include a gradual phase-out, where existing leaders adjust their roles to focus more on mentorship/coaching their successors.

Overcoming road bumps with business succession planning

While succession planning may sound straightforward enough as you line up your wants and wishes for your organization, some common challenges can get in your way.

Vague goals and requirements

You must be clear about each role's requirements and the steps needed to develop your employees. You also should be transparent with potential candidates about how you view their future and gauge their interests rather than making assumptions about what they want.

Missing leadership buy-in

"Many leaders don't like thinking about a future where they are no longer with the company," says Caldwell. "It can feel morbid or counterintuitive, and so they'll need to be sold on the value of doing so."

Lack of available talent

Developing future talent is a must because it cannot happen overnight. You and your HR team should also network with external candidates to build the pipeline of those who could be brought into the company. You can cut down on the time an open position goes unfilled. On top of skills, focus on the diversity of future talent pools and develop a broad spectrum of leaders from different backgrounds and experiences.

Conflict between future candidates

Improper or unclear plans can create unhealthy competition between your employees, leading to distrust and a lack of collaboration. That's why fostering open, honest dialogue about your plans is essential rather than leaving everyone guessing what's coming next.

Emergency loss of employees

Unfortunately, life can get in the way of your succession plan with the sudden departure, illness or death of a leader. Your succession plan should consider how your business would react to an emergency departure. You could also cross-train employees across several roles. You develop more people who can step up in a pinch, and you may uncover unknown employee talents and passions for a new position.

Tricky family relationships

Succession planning can have extra challenges for family business owners to navigate. In some cases, making decisions you think are good for the company can lead to hurt feelings.

"This situation can have heightened emotional dynamics given the personal relationships inside and especially outside of the workplace," Caldwell warns.

You may want to try to make sure your personal relationships don't hinder your objectivity in considering successor candidates. Also, it's a good idea to recognize communication breakdowns that create a lack of transparency in how you're making decisions. If you want to hand over your business to the next generation one day, a well-designed and clearly communicated succession plan is critical.

Where to get help with your business succession plan

Building a succession plan is not easy, especially if it's beyond the experience of anyone in your organization. Even if you feel comfortable with your plan, it still could help to reach out to a professional.

"Getting a third party's opinion can help mitigate the challenges, increase perceptions of fairness and lead to a smoother transition when the time comes," Caldwell says.

You can turn to HR professionals with a long history of experience in helping other small and mid-sized businesses. They can guide you about the essential questions to ask yourself and other stakeholders to shape your plans and the documents necessary to lock it down.

Consider the ADP Talent Management and Succession Management programs from an outside perspective. They can guide you through this important process.

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Free Succession Planning Templates

By Joe Weller | September 24, 2018

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In this article, you’ll find free, downloadable templates for succession planning, including those for emergency succession, career succession, CEO succession, nonprofit succession, board succession, family business succession, and law practice succession.

Emergency Succession Plan Template

This template provides an outline for creating an emergency succession plan to help ensure a smooth transition when an unexpected leadership change occurs. Use the template to develop your own strategic plan for how to handle the temporary or unexpected absence of an executive director or similar role. Identify the key responsibilities of the role that need to be maintained, plans for interim or other hiring options, and procedures for implementing the emergency plan.

Download Emergency Succession Plan Template

Excel | Word | PDF | Smartsheet

Career Succession Plan Template

This comprehensive succession planning worksheet includes a spreadsheet for tracking multiple roles, retirement status, potential successors, required training, and other information. It also includes two sheets for detailed employee succession planning: One matches the competencies required for a position with those held by a potential successor, and the other focuses on internal and external training plans to help fill any competency gaps. This is an Excel template that you can easily modify to include additional data.

Download Career Succession Plan Template

Excel | Smartsheet

CEO Succession Plan Template

Create an executive succession planning template to prepare for a planned or unplanned CEO departure. Use this outline to develop a thorough plan, whether for a temporary or permanent leadership change. The template includes sections for detailed procedures and communication planning. It also includes a section to closely examine the role of the CEO and the attendant responsibilities that need to be addressed.

Download CEO Succession Plan Template

Excel | Word | PDF

Nonprofit Succession Plan Template

As with corporate succession planning, nonprofits need clear plans to help ensure continuity of leadership and management needs. Create a nonprofit succession plan to cover short-term, long-term, emergency, or multiple types of leadership change. Define procedures to be followed by staff and board members, clarify responsibilities for the board of directors, plan for communication with stakeholders, and provide a timeline for implementation. This template also allows you to compile key financial, legal, insurance, and other information for easy access.

Download Nonprofit Succession Plan Template

Board Succession Plan Template

Track the length of service for each board member and identify successors. This is a simple succession plan template that you can use to identify committee members and the roles they serve, list term years with start and end dates, and create plans for re-election or succession. Edit the spreadsheet to include any additional board member information that you want to keep track of.

Download Board Succession Plan Template

Family Business Succession Plan Template

Family businesses can use this template to create succession plans for retiring owners, for the sale of a business, or for unexpected leadership changes. Determine whether family members will be successors and what skills they need to develop in order to be prepared. Define the organizational structure, personnel changes that will take place in the event of a succession, legal and financial considerations, and risk management plans for potential issues.

Download Family Business Succession Plan Template

Law Practice Succession Planning Template

Whether you’re a sole proprietor or partner in a law firm, this succession planning template provides a basic outline for creating concrete goals related to retiring or transferring ownership, identifying capable successors, making a timeline for implementing the succession plan, and more. Create a sense of security for your law practice by setting a clear plan and reviewing it regularly.

‌ Download Law Practice Succession Planning Template - Word

Talent Pool Development Template

This worksheet is designed to help you identify high-potential employees in order to create a talent pool for future positions. These are employees who, with the right career development, could be successors to important leadership positions. Use the worksheet to find key competencies and create an action plan for employees to gain skills and reach goals. Keep track of training and other activities, along with associated results.

Download Talent Pool Development Template

Excel | PDF

How to Create a Succession Planning Template

Once you have selected a template that works well with your business or organizational needs, you can customize it to create a personalized succession plan. Here are some of the elements commonly included in a succession plan:

• Position: This may be one or multiple positions, usually leadership positions, that you will need to fill in the case of a planned or unexpected absence. The plan can provide a detailed look at the key functions of and competencies required for this position.
• Incumbent: This refers to the person currently in the key role.
• Candidates: This is a list of potential employees or others (such as candidates for board membership) who have the skills to move into key roles.
• Readiness Rating: Evaluate candidates to determine current competency levels and gaps that need to be filled. A rating is a quick way to indicate how ready a candidate is to move into the role, and may be based on a range of factors, including performance ratings, specific skills, willingness and ability to relocate, and other assessments.
• Development Needs and Action Plan: Whatever competencies a candidate lacks will need to be developed. A specific plan shows training or other actions that the organization will take to manage this development and track its progress.
• Organizational Chart: Some succession plans include a visual description of key roles and may include photos of the incumbent and candidates in addition to names and other details.

Other common details include communication planning, retention risk information for the incumbent or candidates, procedural guidelines for an emergency absence or a temporary leave, financial and legal information, and more. In some cases, a simple spreadsheet is adequate for identifying talented candidates, planning action steps, and tracking progress. A more comprehensive plan includes supporting documents and clear guidelines for ensuring that leadership roles and management functions continue without interruption.

The Benefits of Succession Planning

Succession planning can support businesses and employees by increasing staff retention, improving performance, and boosting employee confidence. It assists in identifying the critical positions within an organization and tracking potential vacancies so that you can prepare for future personnel needs. It is also a way of aligning future business objectives with employee development by helping high-potential employees gain the knowledge, experience, and skills they need to take on leadership roles. Employees get the benefit of advancing toward promotion, and businesses can help ensure that they fill current and future positions with the right candidates.

Businesses can save money by investing in internal employees, improving staff retention, and preparing for unexpected leadership losses. Succession planning also helps create smoother transitions, whether they’re related to organizational expansion, the sale of a business, retirement, or an emergency situation. Moreover, it can help fill new positions by providing a talent pool that you can draw from. You need to review and update a succession plan regularly so that planning and employee management become ongoing processes.

The Succession Planning Process

Succession planning has at least three stages: identifying future business challenges and key roles, evaluating and selecting employees based on critical competencies, and preparing those employees to fill future positions. Here’s a closer look at some of the steps involved:

• Strategy: Connecting succession planning to strategic business planning just makes sense. Defining challenges and goals for the future provides information about what roles you will need moving forward. Identifying the negative effects (on an organization) of the absence of key positions helps to clarify what competencies, skills, and knowledge are critical for business continuity. Strategizing is also an opportunity to engage senior leaders in the process and help staff understand their roles. Tracking when key positions are likely to become vacant can also help create a more specific timeline for succession.
• Candidates: Create a list of possible candidates based on potential for leadership roles. Of course, the selection process needs to be fair, that is, based on a standardized evaluation process and criteria related to critical competencies and the future potential of each employee. Once you’ve created a talent pool, you can make training plans to fit the competencies that each candidate needs to develop. In order for an employee to accommodate development opportunities, you may need to adjust their schedule or workload. It’s possible that, without undergoing further training, education, or certification, a candidate may already be qualified to fill a position that is not yet open. In that case, be sure to keep them engaged — otherwise, you risk losing a potential leader to another organization.
• Progress: Reviewing and updating plans on a regular basis allows you to track progress and meet milestones. Create a timeline that fits with strategic plans and upcoming vacancies, and include contingencies in case an unexpected transition occurs.

Succession planning may sound like an overwhelming endeavor, but given the potential benefits, it’s worth the investment now to avoid undue challenges later. And, according to the Society for Human Resource Management (SHRM), succession planning might be easier than you think once you break down the process into steps.

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Easy-to-use succession planning template for any business

A succession planning template is a great asset for future-proofing your organization. Even if the tides are in your favor right now, a sudden shift in leadership can create chaos within your company. Without a contingency plan for when managers leave their roles, replacing them with the right succession candidates can be a long and costly process.

But with a succession planning strategy, you can set your company up for future success. Foresight is key to a profitable business in the long term; knowing who can fill in when vacancies open in your company is an important asset.

In this article, you’ll learn how to use our simple succession planning template to line up potential candidates months or even years before the need arises. Let’s dive in.

Get the template

What is a succession planning template?

A succession planning template helps define key roles within your company and identify suitable replacements should they become vacant. Typically, the template will include any information that will help you find the ideal candidate to fill these positions.

Succession planning is the process of finding backups for key positions in case a manager or executive leaves. It’s about ensuring that if option A doesn’t pan out, there’s a backup plan in place. Any good template includes these core aspects of the succession planning process:

•  A list of current business partners and potential replacements
•  Key skills that each senior role requires
•  Level of training and/or experience of the candidates
•  Short-term and long-term cover for senior roles
•  The amount of time it’d take to onboard a candidate for an existing position

The information you record within the succession plan will determine who is the right fit for each critical role in your company.

Why use a succession planning template?

Now more than ever, workers are resigning at alarming rates. A record number of Americans, around 4.53 million , stepped down from their jobs in 2021, leaving companies to pick up the pieces.

A succession planning template provides assurance that when roles in senior management open up in your company, you have a suitable replacement on hand. It’s a way to future-proof your company against everything from sudden dismissals or resignations to retirement and unforeseen events like the COVID-19 pandemic.

When you line up potential candidates to fill a vacant role in the future, you protect your company and can build towards longevity. Businesses with a revolving door dynamic — those suffering from high employee turnover — can experience disastrous consequences. It takes a significant amount of time and resources to train recruits for entry-level positions, let alone for senior roles.

What’s more, you aren’t guaranteed better results when you look to external hires to bail you out of a tight spot.

Using a template and filling out a plan helps you fill any unforeseen vacancies with the perfect in-house candidates. You can save money on hiring costs and decrease the time you spend without a senior manager. It costs on average $4,425 and takes 36-42 days to fill a vacancy when you can’t source someone in-house.

Succession planning can also help boost worker engagement. The clear possibility of promotion incentivizes employees to stay on with the company and gives them something to look forward to.

Now that you understand the “why” behind succession planning templates, let’s explore how you can use them in your company.

What are some examples of succession planning templates?

While all succession planning has the same goal — replacing a vacant role — it doesn’t always follow the same timelines or methods. Let’s take a look at 3 different use cases and templates.

1. Succession planning for soon-to-be-vacant roles

You can use a succession plan template to identify suitable replacements for soon-to-be-retired employees in key positions. With a table like the one below, you can not only plan for the moment the employee retires but also for the immediate future.

( Image Source )

While a long-term plan is necessary, you also have to think on your feet in case something goes wrong in the short term. With this template, you can determine whether you have someone in-house that can step into the role right now, 6-12 months on, or in a year or more. That way, it won’t be an issue if your ideal candidate for the position eludes you, as you’ll have temporary cover lined up.

2. Succession planning worksheet to identify critical roles

You can use a critical role identification questionnaire to figure out which roles are pivotal to your business’ success. Using a simple rating system, you can assign a level of priority to each role, letting you know which gaps you would need to plug first to keep the company running smoothly.

3. Succession planning for identifying strong candidates

Use a candidate profile table to determine key skills needed for the critical roles in your company, as well as preferred experience level.

You can draw upon this information when you create your succession plan for each senior role. It’s a lot easier to find suitable in-house candidates that can take the reigns from those currently occupying critical roles when you already have a list of potential candidates and their strengths.

Want the best of all 3 worlds? We have a solution for you: monday.com

monday.com’s succession planning template

The monday.com succession planning template includes critical role analysis, top candidate tables, and an overview of soon-to-be-vacant roles. Plus, you can take advantage of a fully customizable Work OS , not just dry spreadsheet software. A Work OS is a platform that houses all the tools you need to get work done — task boards, automated workflows, conditional notifications, high-level project planning, real-time dashboards for your management, and more

You can easily create reports to help convince executives that a specific candidate is the right match. You can even use the automation tools and resources to set reminders to discuss your succession planning strategy with your peers.

Personal data security is a priority for monday.com, and sensitive information is only accessible to those who are granted access. As a result, only those involved in the business succession plan will know which candidates are in consideration and for what roles.

Looking for more ways to track, store, and organize your employee growth information? We have a couple of additional templates that may help.

More related templates from monday.com

Individual development plan template.

Individual development plans are often coupled with action plans and inspire employee productivity and professional growth.

With this plan, you can get your employees up to speed on best practices within your company, so you don’t have to address common issues as they arise.

This template can also help you streamline onboarding and performance management processes and provide employees with actionable advice they can use to raise their stock and potentially work towards promotion.

The individual development plan can include the following elements:

•  Professional goals
•  Development opportunities
•  Skills and experience competency assessment

Action plan template

An action plan template is self-explanatory: it details any actions you should take to accomplish a goal or complete a work-related project.

With an action plan, you can break a large project down into bite-size tasks for employees. Then, all you have to do is delegate the tasks to the relevant teams. That simplifies the process and ensures every employee knows what they need to do next, reducing dead time.

Here’s what you’ll need to include in your action plan template:

•  A clear goal or objective
•  Tasks to make progress towards the goal
•  Individuals responsible for each task
•  A timeline for completion of each task and the overall project
•  Key metrics to assess performance
•  A list of any resources that are necessary to get the job done

FAQs about succession planning templates

How do you write a succession plan.

The first step to creating a succession plan is outlining roles that contribute to the company’s ongoing success. Once you’ve done that, you can draw up a list of potential in-house replacements according to whether they meet your criteria for what will make them successful.

Then you’ll want to evaluate each candidate, comparing their skills and experience level to what you expect in the senior roles. Finally, you can identify training that can fill gaps in a candidate’s knowledge and skill levels if necessary to get them up to speed with the role.

Draw from the leadership team’s experience to find out which roles are pivotal to the company’s progress, as this will help you build a clear picture of what the perfect successor looks like.

Which model is most commonly used in succession planning?

The nine box grid succession planning model is very common in succession planning. Nine box succession planning is based on the idea that you can assess a candidate’s potential for various roles using a grid.

The grid, which has nine boxes, categorizes candidates according to their suitability for a role. You divide up information into the following brackets:

• High potential
• Medium potential
• Low potential

You then identify what mediocre to outstanding performance looks like in each of those cases, so you have a complete picture of what a candidate needs to slide into the role and perform the duties well.

What are the steps in succession planning?

Usually, you’ll come across 3 stages of succession planning: assessment, evaluation, and development.

Each stage represents a different part of the process of finding a suitable replacement for a senior management role in your company. Your plan should reflect what key skills a candidate would need to take on the position and perform well in it.

• Assessment: Draw up a list of potential candidates to replace current senior roles in the company, and identify their key skills and experience levels. Determine what your candidates need to be able to do to fill the shoes of these roles.
• Evaluation: Shortlist your candidates according to the criteria you’ve outlined for success in each critical role.
• Development: What development activities are necessary to get any prospective candidates up to speed and ready to fulfill the duties of the role you’ve identified?

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Succession Planning

Ivan Andreev

Demand Generation & Capture Strategist, Valamis

February 23, 2022 · updated April 3, 2024

16 minute read

This article is going to explain what succession planning is and how it can be applied to your business.

After reading this guide, you will have a strong idea of creating or improving your succession planning process and the best practices involved.

What is succession planning?

Business succession planning, benefits of succession planning, succession planning process, succession planning best practices, faq about succession planning, succession planning template.

Succession planning is the process whereby you identify new leaders and develop them to take over the role of the incumbent.

For businesses to thrive, it needs to avoid moments of crisis and lack of leadership.

At some point, succession planning will help with such a situation by preparing a candidate for a planned or emergency replacement. This could be because of retirement, a new opportunity, or in the event of death.

Succession planning is your safety net to ensure that business operations can remain smooth. A robust process will help you identify key individuals who could fill leadership positions.

In the best-case scenario, you will be given advance notice when someone is going to leave. A succession plan prepares you for the worst-case scenario and no notice.

At the same time, an effective succession planning strategy will avoid any questions of succession where leadership positions are concerned.

In the monarchy, this is often resolved through the order of succession. A well-understood model that passes the office to the nearest descendant. This model is also common with family-run businesses that intend to leave the business to their children or next of kin.

It can help you navigate crises and leadership transitions with ease.

In business, succession planning plays a vital role in identifying candidates to take on more challenging roles. When an important postholder departs they leave behind a void that can disrupt the company.

No matter the size of your business, a succession plan is a key to having a smooth transition.

Large companies such as Pepsi , Microsoft , and General Electric have well-known succession plans for executive talent.

For large corporations, it will typically fall to the CEO and the board of directors to oversee the succession plans. They will evaluate employees to identify leadership qualities and provide training for those in consideration.

Often the succession plan will look internally for candidates to take over positions. However, some companies may look to external candidates and may even employ the use of headhunters.

Smaller-scale companies may not need a comprehensive succession plan compared to large businesses. However, there will still be a need to identify someone to take over in the event of an emergency.

Therefore it is wise to train potential successors so they are prepared to step up if the need arises.

Types of succession plans

There are two types of succession plans that should be considered. This will give your business something to fall back on in the case of an emergency.

1. Long-term succession plan

The first type of succession plan you should consider is your long-term succession plan. This is the plan that you will more or less stick to as a standard for key positions.

A succession plan of this nature can be reevaluated and changed as the company grows. For large companies, this would be the plan that outlines the details of succession for all key positions.

2. Emergency succession plan

A secondary emergency succession plan can also be created, where appropriate, to be deployed in the event of an emergency.

This type of plan may involve more temporary measures but is intended to keep operations running smoothly.

This could see other senior members of staff take on extra responsibilities while a replacement is sought.

Many small and medium businesses do not have a succession plan. Of those that do, some of them have only informal plans.

This can be a risk for your business as there could be unforeseen incidents that could occur such as death. It is worth creating a formal, written succession plan that is developed and easily accessible.

Here are some of the benefits for businesses of any size to create a succession plan:

1. Candidates ready to start

When an upcoming promotion, retirement, or departure is approaching you will have the next generation of leaders ready to go.

Thanks to your succession plan the replacement will already have the skills required to take over the role.

2. Encourages managers to develop junior employees

Your succession plan can help your managers to start developing lower-level employees.

The plan helps to define clear progression routes through the company so managers can share appropriate training and information with junior staff.

Managers will also be able to start training their replacement when promotions are approaching.

3. It leads to higher job satisfaction

Employees report higher job satisfaction when there is a succession plan at their company. This is because it helps to define routes to progressions and lowers job insecurity.

A succession plan can help employees understand what they need to do to achieve a promotion. It can help with goal-setting and giving employees a sense of direction at work.

4. Helps to track progress

Succession planning can help your managers to track employee progress through performance reviews.

Internal opportunities can also be quickly filled with knowledgeable employees who have been upskilled and crossed trained.

5. Keeps shareholders confident

Whenever a high-ranking postholder leaves the organization it can leave shareholders feeling uneasy.

In some cases, they may look to sell their shares. A good succession plan can help keep investors on board.

For positions like CEO or CFO, the board may have had some input into the choice of successor. This will give the shareholders confidence in the company and the new postholder.

6. Cultivate and maintain company loyalty

Having a strong culture of promoting from within can lead to increased company loyalty.

You can attract talented employees who will stay with you for a long time. This helps them to have a strong understanding of the businesses, morals, and expectations.

Employees are more likely to stick around for the long term if there are defined advancement opportunities.

Instead of an informal plan, it’s a good idea to make a comprehensive document that outlines how succession should work.

Small and family businesses may only need a limited plan that outlines succession for a single person.

Larger corporations may need a comprehensive document that starts with the hiring process and works its way through the ranks and details different leadership positions.

The fundamentals of your succession plan will remain the same which is what we’re going to look at now.

It’s also worth pointing out that this document can be revised and amended whenever it is necessary.

1. Determine the scope

You will need to figure out how comprehensive you want your succession planning to be.

A small business might only need to find a replacement for ownership. Medium and large businesses may only want to consider the succession plan for their C-suite of employees.

It may also be the case you want a succession plan that covers every eventuality from store manager to distribution to CEO.

Ask yourself the following questions to decide what is best for your business:

• Do you only need a plan that covers senior management?
• Do you want a succession plan that covers the entire organization?
• Are there any vulnerabilities in your business? Such as having a division with a higher amount of employees nearing retirement. Are you prepared for that?
• Should performance reviews be used to help identify potential candidates?
• Should the talent acquisition process be a part of your succession plan?

It’s important to understand what your specific needs are as well as the needs of the business.

The size and type of your business can help to inform some of your decisions but ultimately every business will be different.

2. Identify key positions and skills

First, you have to identify the key roles in your organization that will be good to secure.

It could be the CEO, CFO, CCO, CHRO, and different heads of departments.

Second, you might have some specific specialists that are unique to the industry or your business, e.g. it might be some highly skilled engineer, programmer, scientist, etc.

Consider the following questions to identify key positions and the skills needed for that post:

• How does this position impact the company?
• If this position became vacant, how would that affect the company?
• Are there some big risks if this position became vacant?
• What skills (both hard and soft) are needed for this specific role?

The objective is to figure out how crucial the position is. If the company would be severely affected by a vacated position then this is one that should be considered within your succession plan.

You will also need to understand what specific attributes are needed for the role. That way you can build your training and development around nurturing those key skills.

3. Identify potential candidates

Perhaps the most crucial stage is finding the employees that might be suited to a tougher challenge .

You could ask the current postholder for help determining who could step up in their absence.

It’s also worth considering that the right person for the job isn’t necessarily the next in line. Candidates could be sidestepped in the role or there could be other promising candidates in the business.

You may wish to make hiring a part of the plan and therefore can use interviews to vet potential recruits for career prospects.

Try to answer the next questions:

• Who are the strongest candidates to step into this role?
• What skills do they possess that could benefit their new office?
• What skills are the candidates lacking?
• Does this person have the appetite for more responsibility?
• What training will they need to succeed?

It’s important to identify people who want more responsibility. Your top choice maybe someone who is happy in their current role and not looking to change.

This is something that can be gauged during annual reviews or in meetings about their professional goals.

4. Speak to the candidates

It would be wise to speak with the people you are considering.

This will give you a clear answer if they would be interested in the role.

Don’t make any promises but explain that they are being considered for leadership.

Explain that nothing is guaranteed as there are plenty of moving factors to consider. This includes the current postholder, the company, and the candidates.

However, you can gauge their interest and it may help to encourage high-performing individuals to remain loyal to the company.

5. Work on professional development

Leadership development is worth investing in particularly for employees you have identified for succession into key roles.

There are a variety of ways to develop potential successors and help them to develop leadership skills.

You can create a leadership development plan to ensure candidates have the right skills and are a good fit for leading positions. Employees being groomed for leadership roles can be developed in several ways .

You need to test your employees to make sure they can meet the demands of the increased responsibilities.

Some of the ways this can be achieved are through:

Connect the candidates with business leaders in your company. They can help to develop the skills of succession candidates and even share knowledge that might not be immediately obvious.

You can send prospects on courses to help develop their skills. These could be in-house courses or ones run through independent third parties.

Task forces

Task forces and project management is a great way to test your candidates. This will give them the opportunity to lead a team and test how well they cope under pressure.

When you think about development consider the following questions:

• What is the best way to upskill?
• What resources are required and available?
• Are there some additional skills needed?

The focus should be on improving a candidate’s interpersonal abilities and communication skills that are important in a leading position.

You will also want to give them the opportunity to learn and develop the necessary skills required to do the specific job.

6. Trial and error

There should be ample opportunity to give your succession plan a trial run with the candidates you are considering. For example, if the postholder is away on holiday or off sick for an extended period you can use this as an opportunity to try someone in the role.

The benefit here is twofold, the candidate will get a feel for the position and appreciate the opportunity. While you can assess whether they are the right candidate for the position.

Note: Such tests can affect the team so pay close attention to this . This is especially true for external candidates and people from different teams. Not everybody will like it, unless the candidate is a strong leader from the inside of the team.

This is what you need to consider:

• How does the employee interact with others?
• Have they kept the department running smoothly?
• How do they handle issues that arise?
• How do they react to stressful situations and conflicts?
• How much help do they need in the role?

You want to see them step up and take control of the position. This will help identify if there is any specific training they need to take the role full-time.

You can gauge whether someone is wrong for the position. This may come down to their interpersonal skills or ability to deal with new challenges.

7. Refine and redefine

Your succession plan is something that can be developed over time.

It may be that what was working years ago isn’t quite the same now.

You may need to adjust the succession plan to adapt to a changing business landscape. As the business grows you may need to redefine what is included in your succession plan.

It would be prudent to start with the most important roles in the business. After all, you can’t totally predict when a key position will become vacant.

Once you have those key positions locked down you can start to expand the scope of your succession plan.

1. Start from key roles

You should start with the most important roles first.

Which of the positions will have the greatest effect on your business if the postholder doesn’t turn up tomorrow?

Roles at an executive level are going to be the most disruptive ones. From there work out the specific skills and knowledge required for the role. This will help you to create your plan and identify potential successors.

Once the most pressing roles are covered you can look at what other roles are important to include.

2. Talk to your employees

Your succession plan will affect people and may make some people feel nervous.

It’s important to explain the scope of the succession plan and why certain roles are included in it.

You may only look to include executive positions or your plan may include managers and supervisory staff as well.

By giving a clearly defined scope you can avoid members of staff second-guessing their position.

3. Collaboration between management and HR

This is a process that should be driven by the business leaders with support from HR where necessary.

It is not strictly an HR process and therefore senior leadership should be communicated with regarding the succession plan.

Gain insights, input, and information from across the senior positions to help the succession plan run smoothly. Interviewing the post holders about the wants and needs of their job can provide crucial information.

4. Forecast your business needs

You should have an emergency succession plan in place that can deal with the untimely vacancy of a position.

Alongside this, you can create a detailed forecast and a longer-term plan. This is necessary to address things like upcoming retirement and promotions.

You will also need to consider how quickly the business can mobilize to fill this position.

A strong succession plan will understand how it will impact the business in 6 months, 1 year, and 5 years.

5. Create a pipeline of talent

Create a pipeline of talent so you have individuals ready to take up new challenges as they arrive.

A pipeline of this kind is essential for finding a talented successor but it’s also a good idea to help fill newly created positions. New recruits can be included in your pipeline of talent.

You can learn about this in our talent acquisition guide.

Even if you don’t have any open positions currently, you can still start cultivating a pool of talented individuals.

6. Annual talent reviews

Your succession plan is something that should be continually developed.

This includes reviewing the candidates on an annual basis or more. People may have moved on or into new positions within your company. Promising candidates may no longer be performing at the standard you would like.

Take a look at your succession plan every year and adapt and change things where it is necessary.

7. Build the learning culture inside your organization

It will help you nurture and grow potential candidates as well as new talents.

When you have identified the individuals that are being considered for senior positions you will need to develop their skills.

You can work with the candidates and they can lead their own individual development plan.

This ensures that their progress is actively monitored and they can take ownership of the process.

Managers should be on hand to provide guidance, resources, and provide timely reviews.

Why is succession planning important?

Succession plans make your business disaster-proof. They provide a concrete plan for filling key roles and help to avoid times of uncertainty. It can be reassuring for investors to know that there is a carefully considered plan in place.

How to do succession planning?

Succession planning should be conducted by business leaders with support from the HR teams. All affected individuals need to be involved in the process. Start with the end goal to identify what you need to achieve. Each business will have different needs so consider which positions will have the biggest effect on operations.

What is business succession planning?

Business succession planning is the process whereby you identify candidates to be groomed for senior positions. Specifically, when the incumbent leaves the role, this could be for a promotion, retirement, or an untimely death. Your business succession plan is in place to facilitate a transfer of power and keep your business sailing smoothly.

What is the correct order of the succession planning process?

• Identify which positions need to be included
• What specific skills are required for those roles?
• Identify people who could be a good fit
• Start grooming them for succession
• Review your succession plan and candidates annually

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How to Create a Business Succession Plan

For many small business owners, maintaining positive cash flow and a stable balance sheet can be an ongoing battle that consumes virtually all of their time. Even retirement often seems like a distant speck on the horizon, let alone plans to hand over the business. However, establishing a sound business succession plan is beneficial for most business owners and can be absolutely necessary for some.

For business owners that are at or near retirement, the issue of succession cannot be ignored. In this article, we will take you through the steps you'll want to take to create a successful succession plan.

Picking a Successor Isn't Easy

Many factors determine whether a succession plan is necessary, and sometimes the logical and easy choice will be to sell the business lock, stock, and barrel simply. However, many owners prefer the thought of their businesses continuing on even after they're gone.

Choosing a successor can be as easy as appointing a family member or assistant to take the owner's place. However, there may be several partners or family members from which the owner will have to choose — each with a number of strengths and weaknesses to be considered. In this case, a lasting resentment by those who were not chosen may happen, regardless of what choice is ultimately made. Partners who do not need or want a successor may simply sell their portion of the business to the other partners of the business in a buy-sell agreement .

How Much Is the Business Worth?

When business owners decide to cash-out (or if death makes the decision for them), a set dollar value for the business needs to be determined, or at least the exiting share of it. This can be done either through an appraisal by a certified public accountant (CPA) or by an arbitrary agreement between all partners involved. If the portion of the company consists solely of shares of publicly-traded stock, then the valuation of the owner's interest will be determined by the stock's current market value.

Life Insurance: The Standard Transfer Vehicle

Once a set dollar value has been determined, life insurance is purchased on all partners in the business. In the event that a partner passes on before ending his relationship with their partners, the death benefit proceeds will then be used to buy out the deceased partner's share of the business and distribute it equally among the remaining partners.

There are two basic arrangements used for this. They are known as "cross-purchase agreements" and "entity-purchase agreements." While both ultimately serve the same purpose, they are used in different situations.

Cross-Purchase Agreements

These agreements are structured so that each partner buys and owns a policy on each of the other partners in the business. Each partner functions as both owner and beneficiary on the same policy, with each other partner being the insured. Therefore, when one partner dies, the face value of each policy on the deceased partner is paid out to the remaining partners, who will then use the policy proceeds to buy the deceased partner's share of the business at a previously agreed-upon price.

As an example, imagine that there are three partners who each own equal shares of a business worth $3 million, so each partner's share is valued at $1 million. The partners want to ensure that the business is passed on smoothly if one of them dies, so they enter into a cross-purchase agreement. The agreement requires that each partner take out a $500,000 policy on each of the other two partners. This way, when one of the partners dies, the other two partners will each be paid $500,000, which they must use to buy out the deceased partner's share of the business.

Entity-Purchase Agreements

The obvious limitation here is that, for a business with a large number of partners (five to ten partners or more), it becomes impractical for each partner to maintain separate policies on each of the others. There can also be substantial inequity between partners in terms of underwriting and, as a result, the cost of each policy.

There can even be problems when there are only two partners. Let's say one partner is 35 years old, and the other is 60 years old — there will be a huge disparity between the respective costs of the policies. In this instance, an entity-purchase agreement is often used instead.

The entity-purchase arrangement is much less complicated. In this type of agreement, the business itself purchases a single policy on each partner and becomes both the policy owner and beneficiary. Upon the death of any partner or owner, the business will use the policy proceeds to purchase the deceased person's share of the business accordingly. The cost of each policy is generally deductible for the business, and the business also "eats" all costs and underwrites the equity between partners.

3 Reasons to Have a Business Succession Plan

Creating and implementing a sound succession plan will provide several benefits to owners and partners:

• It ensures an agreeable price for a partner's share of the business and eliminates the need for valuation upon death because the insured agreed to the price beforehand.
• The policy benefits will be immediately available to pay for the deceased's share of the business, with no liquidity or time constraints. This effectively prevents the possibility of an external takeover due to cash flow problems or the need to sell the business or other assets to cover the cost of the deceased's interest.
• A succession plan can greatly help in establishing a timely settlement of the deceased's estate .

The Bottom Line

Proper business succession planning requires careful preparation. Business owners seeking a smooth and equitable transition of their interests should seek a competent, experienced advisor to assist them in this business decision.

American Bar Association. " Forms of Stock Purchase Agreements ," Page 1.

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Template Highlights

• Evaluate and plan for your organization’s future leadership using this succession plan template.
• Access the succession plan template in Excel, Google Sheets, or PDF format for easy use and customization.
• Identify potential leaders, assess their readiness, and plan for their development.
• Implement required actions tailored to each candidate to enhance their skills and readiness for leadership roles.
• Print the template in your desired format or share it via email for collaborative succession planning.

Frequently Asked Questions

What is a succession planning template.

A succession plan template is a strategic tool that helps organizations identify key positions, select qualified candidates, and train promising employees for future leadership roles. It is an integral part of ensuring a company’s longevity and security.

The template typically includes several crucial components:

• Positions : These roles need to be filled, usually revolving around roles critical to the company’s ability to function.
• Name : This is the person who currently fills the position.
• Required Actions : These are the steps that need to be taken to prepare for the transition. Most succession plans include two to three actions for each role.
• Readiness : This system measures how prepared a candidate is for the role.

The template can track multiple roles, retirement status, potential successors, required training, and other information.

Why use a succession planning template?

Using a succession planning template ensures your organization can easily navigate leadership transitions and other unexpected events. It helps maintain business continuity, particularly during shifting leadership and change.

Can the template be used for any industry?

Is this template free and editable, related tags:.

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10 Free Succession Planning Templates for Teams

David Banks

February 13, 2024

Whether in business or life, you must learn how to navigate the turbulent wind of change. 🌬️

Your best bet is to embrace it, be proactive, and do some serious prep. When it comes to workforce changes, succession planning templates are your saving grace.

We’ll discuss 10 of our favorites and show how each succession plan template can help ensure continuity and a smooth leadership transition . They’re free, so why not give them a try?

What Is a Succession Planning Template?

What makes a good succession planning template , 1. clickup succession planning template, 2. clickup corporate succession planning template, 3. clickup staffing plan template, 4. clickup employee development plan template, 5. clickup skills gap analysis template, 6. clickup skills mapping template, 7. clickup training rollout plan template, 8. clickup technical skills matrix template, 9. clickup hiring selection matrix template, 10. clickup employee engagement action plan template, business succession planning templates—an overview.

Succession planning is a strategy businesses use to prepare for leadership changes resulting from resignations, retirements, or promotions. It’s a long-term plan which has to follow office management principles and requires plenty of thinking ahead.

It also needs to be reassessed and updated annually or after each transition. Some of its key steps are:

• Defining critical roles and key positions
• Identifying and evaluating potential successors
• Creating development plans for each potential successor

Succession planning is a framework that helps businesses effectively map out the steps toward a seamless leadership transition. These contingency blueprints serve to streamline key roles and staff changes while reducing the chaos that often accompanies a detailed succession plan. 

To be effective, a succession planning template needs to:

• Be comprehensive : Cover all crucial aspects of the succession planning process
• Allow for customization : Be scalable and adaptable to various types of organizations and leadership positions
• Be user-friendly : Simplify the process and be easy to use for everyone to maintain business continuity
• Facilitate collaboration : Allow everyone to put in their two cents and participate in the succession planning process
• Provide analytics : Ensure real-time tracking of the progress and outline all business challenges

10 Succession Planning Templates To Use in 2024

Succession planning is no walk in the park, but with the right tools, it can go smoothly. Use one of these 10 templates for your succession planning process in ClickUp to create a strong pipeline of potential candidates and leaders and bring about stability during trying times. 

We don’t know what the future holds, but we do know that you can use the ClickUp Succession Planning Template . This succession plan template helps you manage talent transitions in leadership roles or identify key positions in a new succession plan.

It’s a multi-functional organizational tool that makes planning a breeze . 💨

If this is your first time working with a ClickUp Template , refer to the Getting Started Guide. Although advanced, the template is intuitive to use and set up. It’s a folder containing two lists—Team Members and Professional Development Activities.

The Team Members List contains information about each worker, such as their current position, department, potential candidates, and succession readiness. You can customize these fields to better reflect your needs. 

If you prefer Kanban-style boards over lists, ClickUp has got you covered. In Board view, employees are represented as cards and grouped by potential or critical positions to help with visualization.

Each card displays essential information about the potential hiring aspects of your leadership roles, including fun emoji rating scales for communication, leadership skills, and performance. You can change the cards’ appearance as well as their grouping and sorting methods.

The second list, Professional Development Activities , allows you to track and manage all necessary tasks and subtasks to ensure smooth transitions throughout your succession planning.

In the corporate realm, a rock-solid succession planning framework acts as a shield against instability and disruption. Due to the size of these organizations, it’s also easy to get lost in all the data and let ideal senior positions and senior leaders slip through the cracks. 

With this ClickUp Corporate Succession Planning Template , you can stay on top of the game. It organizes and simplifies the account planning process , regardless of your company’s size.

The succession plan template is a folder containing three lists:

• Training Activities : Includes training that potential successors have completed or plan to complete in the future
• Potential Candidates : Contains information about all potential successors and their readiness for higher positions
• Corporate Succession : Singles out the critical roles within the company, outlines their responsibilities, and proposes a transfer plan for succession candidates

Each list comes with a List and Board view for your convenience. Create tasks, subtasks, and checklists to actualize your plans.

Tailor the template to your corporate needs by changing the sorting method and creating custom categories and fields. Introduce new views, such as Gantt and Workload, for effective time and team management .

Succession planning may not be an everyday task, but HR operations are always ongoing. Luckily, the ClickUp Staffing Plan Template allows you to stay up to date with your workforce, be it today’s operational staff or future leaders.

This succession plan template is beginner-friendly and requires no instructions. But if you need guidance, you can find it in the good-old Start Here document.

The Staffing template is a whiteboard comprising two parts— a staffing plan process flowchart and an organizational chart to identify key roles and senior management hierarchy in your organization.

The staffing process outline allows you to define the exact steps of your succession plan. By default, those steps include:

• Assessing current capacity
• Identifying business needs
• Developing HR management strategies

Below each step, you can find sticky notes, which let you create subtasks and caveats.

The organizational chart represents a hierarchy of people within your organization. Color-coded for better visualization, the chart comes with four seniority levels.

As with other ClickUp Whiteboards , you can customize all the elements. Insert images, add connectors to indicate relationships, and group employees together to form cross-functional teams and departments.

Whiteboards also give you the freedom to scribble and introduce additional elements, such as mind maps and websites to give succession plans everything they need to—well, succeed!

Without employee development, succession planning would be complicated at best and chaotic at worst. 😵

That’s why you need a solid training plan for your future leaders . And there’s no better and faster way to make one than with the ClickUp Employee Development Plan Template . It’s a simple tool that anyone can use regardless of skill level.

It’s in list form but has multiple views, including:

• Getting Started Guide : Instructions on how to use the succession plan template
• Employee Summary : A master list of all employees and their development plans
• Department Plan : The same as the previous list, but organized by departments
• Development Status : Employee plans in the agile board form
• Employee List : A table outlining basic info about each staff member

By default, the template contains custom fields such as status, plan timeline, development method type tags, assessment outcome, and many others. 

The Board view helps with visualization, displaying only key info about the worker to prevent visual clutter. You can change the sorting and grouping modes, modify the categories, and add new fields.

Once you’ve chosen the replacements for essential leadership positions, you want to help them excel. If you’re unsure how to go about it, use ClickUp Skills Gap Analysis Template ! 

The tool is your one-stop shop for skill development planning . While you assess, analyze, and hone your future leaders’ skills, the template acts as a bridge that holds it all together. 🌉

It contains multiple List views and a Board view, displaying employees’ details and information about their skills, grouped by different factors—department, skill type, and priority. Besides the basic employee info, such as the position, these lists have dedicated fields for skill importance scores, skill ratings, and action recommendation notes.

Once you assess employees, input the scores in the list and use formulas to calculate total or average scores. The template comes with a preset formula for the Gap score , representing the difference between Target and Total scores. Feel free to introduce custom formulas as well.

Although an essential ingredient of succession planning, skills assessment is a satiating meal on its own. To develop your employees’ skills and enable them and the company to grow, you have to know where they stand.

ClickUp’s Skills Mapping Template allows you to do that effortlessly. It’s a platform for self-assessment and score documentation and visualization with multiple views, including an assessment form and lists that show the results using different sorting criteria.

The first step is to forward the form to your employees. After they complete it, refer to one of the List views to see the results. You can also create other forms and collect different types of info, such as 360-degree feedback.

Keep in mind that you must subscribe to the Unlimited plan or up to share forms.

In the List view, scores are represented with fun emojis, adding a playful touch to the often dreaded skills assessment process. You can personalize emojis, categories, and fields to make the form more relatable and less intimidating. 

Once succession training gets underway, you need a solid system to manage programs and track progress . With the ClickUp Training Rollout Plan Template , you can stay on top of all information and plan the next steps with clarity and confidence. 💪

Although packed with features, this template is easy to use. It’s a list with many views covering various aspects of training management. 

The main view offers a complete list of training programs grouped by type. The columns include trainers, assignees, start and due dates, resources, and modalities, but you can customize them if needed. 

The Schedule view displays the timeline of events to help you manage time and coordinate training programs to ensure efficient implementation. The Modality board view shows courses as cards, enabling a visually engaging and intuitive way to organize tasks.

While the previous template allows for efficient training scheduling, this one lets you track assessment results. You can review scores, add ratings, calculate averages, and compare results to choose the best successor for any position .

The ClickUp Technical Skills Matrix Template is a handy tool for understanding the potential of each employee. With color-coded categories, it’s easy to identify strengths, areas for improvement, and skill gaps within your team. Although designed for technical skills, this template can be modified for other purposes, such as soft skill assessments and 360-degree feedback.

The template contains several views, including:

• Technical skills : A list of all employees and how they score on various hard skills, such as software development and debugging
• Core competencies : A list of all employees and how they score on core competencies, such as project management and analytics skills
• Gap analysis : A table that singles out employees with skill gaps that should be addressed in their key positions

To quickly identify top performers, calculate average or total scores using formulas. Specify the overall development needs by selecting a category from the drop-down menu. You can add supporting documents in the References field to track everything in your future or past succession plans.

Finding new people is sometimes more convenient than relying on internal resources and trying to fit square pegs into round holes. In such cases, you should screen numerous candidates to find the perfect match. With the ClickUp Hiring Selection Matrix Template , that process becomes more manageable.

It’s a document with multiple views designed to help you track candidates and their progress . In the Candidate Database list, you can find all the necessary info, including CVs, contact details, and assessors’ ratings. 

The Call Log board view shows candidates as cards, grouped by the hiring stage they’re in. The cards represent simplified candidate profiles, but you can reveal more information by clicking on them. To manage meetings , refer to the Interview Schedules Calendar view in ClickUp .

The ClickUp Employee Engagement Action Plan Template is a simple document that assists in your efforts to increase employee retention, satisfaction, and productivity . 📚

It begins with a space for your company name, logo, department name, and date. In the next section, Key Areas of Focus, you can state your:

• Business Strategy : Your values and the problem your business or department aims to solve
• People Strategy : Your goals when it comes to talent engagement within your company and how you plan on achieving them
• Strategic Priorities : Summary of the essential points from the previous two sections, organized in a table

The following section focuses on measuring success. You can input your expectations for each objective in the table, then compare them to actual results to evaluate progress . Finally, create a communication plan, specifying preferred channels, audience, and frequency of updates for each goal. 

Compared to other succession plan examples in this list, this template lets you jazz up the document by inserting cool graphics or images, playing around with fonts, and customizing the color scheme to match your branding.

Check out a brief rundown of all the templates and their benefits:

Use These Succession Planning Templates To Stay Ahead of the Game

In the words of the great Miguel de Cervantes, ‘To be prepared is half the victory.’ This timeless wisdom holds true in the realm of succession planning as well.

With the right approach and tools, you can facilitate a successful transition of leadership within your business . Use these templates for succession planning and allow your organization to triumph no matter the circumstance. 👑

Business succession planning doesn’t have to be a challenge. Get ClickUp today and see why so many businesses rely on the platform for documenting and planning.

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Succession Planning Tools & Templates

Free succession planning templates library.

To complement our  Succession Planning Services , we have developed a library of free succession planning templates and tools that will support your organization’s initiatives. For a complete printable version of all of our succession planning templates and to learn more about our  succession planning process , download SIGMA’s Succession Planning Guide below.

Succession Planning Guide

SIGMA’s Succession Planning Guide includes our most important templates in chronological order, as well as instructions and examples to guide you through SIGMA’s six-step succession planning process.

What is a Succession Planning Template?

A succession planning template is a tool that can be used to help move a business along each stage of the succession planning process. Each of our templates provides checklist items, forms, and development plans to propel your business’s succession planning efforts further.  Browse our library of templates below to get started.

Succession Planning Templates

Critical Roles Identification Questionnaire

The Critical Roles Identification Questionnaire is a succession planning template that will help you to identify those key roles that your organization should target in your succession program.

Success Profile Template

The Success Profile Template is a succession planning worksheet designed to describe the talent needed for success in a key role.

Succession Nomination Survey Template

The Succession Nomination Survey is a simple succession planning tool that can be used to identify which candidates to consider for the critical roles you identified in phase one.

Succession Bench Template

The Succession Bench Template is used to evaluate the overall readiness of your succession candidates for a role.

Candidate Succession Profile Template

The Candidate Succession Profile Template is designed to identify gaps between the requirements for a role and the potential candidate being developed for that key leadership position.

Development Actions Form

The Development Actions Form outlines a succession candidate’s goals, action plans, and milestones for their growth and development.

Talent Progress Scorecard Template

The Talent Progress Scorecard Template allows you to review the outcomes of your business succession plan across several important indicators.

Our succession planning guide will walk you through what is required at each stage of the succession process along with some helpful tips to get you started.

Succession Planning Checklist

The succession planning checklist is a quick measure of the maturity level of your succession plan and what areas need to be improved.

Succession Planning vs Replacement Hiring Checklist

The succession planning vs replacement hiring checklist will help you identify if your organization is engaging in strategic long-term planning or settling for a quick fix.

Developing a Succession Plan that Supports Diversity

In this guide, we discuss the importance of diversity, how building diversity can benefit your team, and how you can use succession planning to create a leadership development program that supports diversity.

Download All Succession Planning Templates

If you would like a copy of all the templates you need to create your own succession plan, download SIGMA’s comprehensive Succession Planning Guide. This free guide includes our most important templates in chronological order, as well as instructions and examples to guide you through SIGMA’s six-step succession planning process . 

Video Transcription

Our succession planning template available in this free download will walk you through what is required at each stage of the succession process, along with some really helpful tips to get you started. Inside you’ll find functional templates and tools to help you along every stage of your succession planning process, including measuring the maturity of your current process, determining where to focus limited resources, defining what is required for success at each role, identifying those succession candidates, building and measuring your talent bench, documenting development needs, tracking progress and identifying those really important development opportunities, and finally, measuring and communicating the success of your process which we think is really the most important part of the processes, is closing that loop. Hopefully this template helps you develop and get started on your succession planning process. If you need help getting started, take a moment to check out our “Succession Planning Launch Series” which offers a simple and cost-effective way to build a robust process and ensure your organization’s leadership is positioned for success and prepared for the unknown. Contact us to learn more about our Succession Planning Launch Series that delivers a custom succession plan in just 30 days, while requiring less than eight hours, essentially two half-day sessions, from your leadership team.

Browse Templates by Process

Identifying critical roles.

Determine which roles your organization should target through its succession program.

BUILDING SUCCESS PROFILES

Describe the talent composition required for each critical role today and in the future.

NOMINATING SUCCESSORS

Choose candidates for each critical role through a nomination survey.

ASSESSING SUCCESSION NEEDS

Summarize each candidate’s talent profile and identify gaps to target through development.

DEVELOPING TALENT

Prepare development plans for candidates and track their development activities.

MEASURING PROGRESS

Measure the impact of your succession plan.

Need Help Getting Started?

SIGMA’s  Succession Planning Launch  is an efficient and affordable solution designed to establish a strong succession planning process and fortify leadership for optimal performance, even in unpredictable circumstances. Contact our team today to learn how we can deliver a full-year, custom succession plan in just two half-day workshops.

Succession Planning Template FAQs

What is a succession planning template.

A succession planning template can be a process or a tool. As a process, a succession planning template outlines the steps an organization can follow to build a strong succession plan. SIGMA uses a six-step process, which is unique because it not only helps leaders create a plan, but it also helps organizations establish an ongoing talent development program. This ensures that the succession plan will be sustainable over time, and replicable as new employees join the talent pool.     As a tool, succession planning templates may consist of checklists, forms, development plans, etc. SIGMA’s templates are built to correspond to a particular step in the succession planning process. For access to all of our templates in chronological order, d ownload SIGMA’s free Succession Planning Guide. The guide walks you through our six-step succession planning process AND includes all the templates you’ll need along the way .

Why use a succession planning template?

SIGMA’s succession planning templates provide a structured approach to identifying and developing future leaders, ensuring a smooth transition during leadership changes. They can also help organizations save time, provide consistency, and help align  talent development with strategic goals.

Can these succession templates be used for any industry?

Yes, SIGMA’s succession planning templates can be adapted for use in various industries. While the specific terminology and requirements may vary, the underlying principles of identifying and developing talent for leadership roles remain relevant across different sectors.

Are these succession planning templates suitable for organizations of all sizes?

Yes, SIGMA’s succession planning templates can be beneficial for organizations of all sizes, from small businesses to large corporations. The templates can be scaled and adapted to meet the specific needs and resources of your organization.

Do these succession planning templates address both internal and external succession planning?

Yes, our succession planning templates address both internal succession (promoting from within) and external succession (bringing in talent from outside). The templates can be tailored to suit your organization’s specific needs in either scenario.

Want to Learn More About our Succession Planning Methods?

Glen Harrison is a senior consultant who specializes in organization transformation and succession planning. He has worked with many Fortune 500 companies and government organizations in Canada and the United States. Glen has helped numerous clients build strong succession plans using SIGMA’s products and services to unlock their people potential. Contact Glen today and learn about how SIGMA can help you develop your leaders. We would love to hear from you!

Business Succession Planning: A Step-by-Step Guide

Business succession planning is a valuable tool for both small businesses and growing enterprises. In small businesses, succession planning means effectively managing changes in ownership or leadership. In larger organizations, it that can help to avoid potential talent gaps that have a detrimental effect on the company. The right strategy can help you plan ahead so that you can transfer knowledge and retain employees in key roles. And this is a top priority in these uncertain, post-pandemic times.

With that in mind, we have created a step-by-step guide to help you design and implement a plan that sets your business up for long-term success . We will take a look at the benefits of succession planning in HR and break down the succession planning process to help you understand everything that’s involved.

What Is a Succession Plan?

Why is business succession planning important, what is succession planning in hr, the business succession planning process in 5 steps, business succession planning best practices, succession planning template, succession planning tools.

• Create a succession plan with performance management software 🚀

So, what is the definition of succession planning? How can you apply it to your business?

Business succession planning is a process that helps you prepare your company for the future. Essentially, it’s about creating a strategy and process for identifying potential future leaders and developing their skills so that they are ready to take on a new role when one of your key employees leaves the company.

Through careful planning, communication, training, and feedback, you can create a successful change management strategy that prepares you for potential transitions in your business. This helps you avoid key player talent gaps. It also helps you proactively develop your inclusive leaders of the future.

Despite its valuable role in business planning, according to a survey conducted by SHRM last year, only 44% of HR professionals claim that their organization has a succession plan in place. What’s more, only 21% of those that do have a plan in place have created a formal succession management plan.

Do you have a detailed succession plan in place? If not, then you’ve come to the right place.

According to the 2021 Global Leadership Forecast , companies around the world are facing a leadership crisis. In fact, only 11% of surveyed organizations reported that they have a “strong” or “very strong” leadership bench, the lowest rating in the past 10 years (it has been in decline since 2011’s reported 18%). This drop has been attributed to a decline in leadership development and transition training in organizations.

Understandable given the distractions the world has had over the past couple of years.

Nonetheless, this figure shows just how important it is for organizations to work on their succession management strategies. This is the most effective way to ensure that the leaders of the future have the right skills and experience to guide them to success . And this is what business succession planning is all about.

By preparing strong leaders for the future, you can help your organization reach its long-term goals, reduce employee turnover , and build a stronger and more resilient business that’s ready to thrive.

Benefits of Business Succession Planning

In case you’re still not convinced, let’s take a look at some of the specific benefits of business succession planning in a bit more detail.

• Identifying and developing your existing employees for future leadership roles helps you to promote from within . Aside from reducing turnover and hiring expenses , this also helps you ensure your future leaders have the right organizational knowledge and internal relationships , something which external recruits will lack.
• Promoting the development of your existing employees shows them that you are willing to invest in their future . This can be a great morale boost that motivates employees to stay at your company. This helps you stay competitive and attract top talent to your business.
• A well-designed succession plan helps you formalize training for both present and future leaders. It keeps your business moving forward and helps you retain your top performers .
• Business succession planning is also an effective tool for mitigating the risks of organizational change . This helps you avoid any potential talent gaps when someone leaves your company. It also helps you pass on valuable institutional knowledge to future leaders before it’s too late.

Succession planning in HR consists is a vital part of talent management. It’s all about your role as an HR professional in identifying key roles and positions that may need filling in the future and finding and developing internal candidates who may have the right skills and experience to fill them. The right strategy can help you retain staff, cut recruitment costs and better manage your internal recruitment processes .

HR succession planning is the process of identifying, selecting and developing employees who could potentially become key players with the right development. This helps you prepare for potential organizational changes so that you have skilled and engaged employees waiting to fill key leadership roles when the time comes.

As an HR professional, you play a significant role in preparing and facilitating your organization’s succession management strategy. However, for your succession planning in HR strategy to succeed, it’s equally important to get the support of senior management so that your plan is as effective as possible and aligned with your organizational goals .

Talent Management and Succession Planning: Employee Buy-in

Business succession planning is also about managing your existing talent so that you are able to retain as much institutional knowledge and experience as possible. This means that, aside from working with senior management, you also need to rely on the feedback of your employees.

What do we mean by this?

Essentially, it’s all good and well managing and developing your existing talent, but they need to be on board with your succession plan and have a genuine interest in remaining at your company and developing their skills. Otherwise, the time and money you invest in preparing them for future leadership positions will be wasted.

Make sure the potential succession candidates you select are:

• Interested in learning new skills
• Comfortable with change
• Motivated and engaged
• Able to adapt to uncertainty and new working environments
• Willing to take on more responsibilities
• Up for a challenge

Now that we’ve discussed what business succession planning is, let’s take a look at what you need to include in your succession planning process.

Make sure your succession planning framework includes the following 5 key stages.

Define & Align Your Goals

The first step is creating a succession leadership plan. This means you need to define your goals and align them with your business. You may need to meet with senior leaders for this phase to ensure your goals are aligned with your overall strategy.

You also need to have a clear idea of who you are as a business before creating your succession leadership plan. Once you understand “who” you are, you will be better equipped to identify your potential new leaders.

Finally, to complete your plan, you need to:

• Define the roles, skills, and experience that each successor will require (your succession profiles). Make sure you gather as much feedback on this as possible from your team to help you get a full picture of what you need to include in your succession plan.
• Create a forecast of your company’s needs . Where do you need to be as a company within the next 5 years? How will your organizational structure change over this time? Think about your turnover trends, compensation strategies, who may be due to retire, and training and development plans for the future.
• Update your job descriptions to reflect the information you’ve gathered. Make sure you are clear about your expectations . This will help you define the right candidate profiles for your succession plan.

Create Your Succession Strategy

Defining your goals is one part of your plan, but you also need to create a comprehensive succession planning strategy to make sure you are on the right track – you need a business strategy game plan !

So, what does this mean, exactly?

Put simply, you need to define a series of actions and strategic moves that help you align your succession goals and objectives with your overall HR strategy .

Consider the following:

• Where do you want to be as a business? What roles, positions, skills and experience will you need to succeed?
• Which senior/leadership roles do you need to create a succession plan for?
• Will you take business succession planning into account during performance appraisals in order to identify potential candidates throughout the year?
• Does your business have any specific vulnerabilities that may affect your succession plan? (For example, a high percentage of employees that are due to retire soon)
• Have you considered adjusting your hiring strategy to account for successor roles?

The key here is to be as proactive as possible with your strategy. Anticipate potential gaps in your workforce before they occur.

Identify Potential Candidates

The next step is to evaluate your current workforce in order to identify key positions that may need filling in the future, and key employees that may be suitable replacements. This is where you will implement the succession profiles and job descriptions that you created in the previous step. The more information you include in your profiles and descriptions, the easier it will be to identify the right match within your existing workforce.

Generally speaking, the best candidates will be supportive, proactive, engaged with learning and development, great problem-solvers, adaptable and able to take on more responsibility.

It’s important to be as objective as possible in this stage. You also need to consider that potential candidates may not currently be in leadership roles. It’s all about finding potential. The most effective way to do this is by using succession planning tools and metrics, rather than relying on personal opinions. More on this shortly.

Establish Professional Development Opportunities

As soon as you have your list of potential candidates and you know what skills they need to work on in order to eventually fill the role you have matched them to, it’s time to create a professional development plan to help them get where they need to be.

Which skills does each candidate need to develop? What learning opportunities would help them get the right experience and expand their current skillset? Are there any knowledge gaps that you need to address?

Create a list of the skills each candidate currently has vs. the skills they need to acquire, then work out the best way to offer them suitable opportunities for learning and development. Create individual development plans, offer formal training, consider creating a mentoring or coaching program to support them, and encourage continuous feedback and communication.

Implement Your Plan

The final stage is implementing your business succession plan. This will usually be a gradual transition with multiple short and long-term layers.

The first layer involves officially announcing your succession plan and notifying potential candidates. You then need to roll out your individual development plans and arrange training. Introduce candidates to their mentors, if you are using them, and encourage them to meet regularly. This will show your employees that you support their professional development, and you can see that they have potential.

Most importantly, make sure you collect regular feedback to see how your individual development plans are progressing, and if potential candidates are on track to reach their succession objectives.

Here are a few business succession planning best practices to help you create a plan that sets you up for success:

• Formalize your plan . The sooner you create and formalize a detailed succession management plan, the better. Make sure your succession planning process focuses on all key stages. That means not just identifying the roles and skills you need for your future leaders, but also implementing individual development plans to get your workforce where they need to be.
• Make sure your succession planning in HR plan is dynamic . Succession planning is all about change management. Be prepared to adapt to change by constantly updating your plan.
• Collect regular 360-degree feedback . This will help you keep track of your employees’ interests, skills, performance, strengths, weaknesses, and opportunities.
• Promote open communication . This will help you build trust and set clear expectations.
• Consider your entire workforce . Don’t just focus on your managers. Your leaders of the future might be hiding in lower-level positions. Look for potential, not existing skills.

One of the most valuable tools you can use for this strategy is a succession planning template. The right template will help you define key roles within your company and identify suitable replacements. Make sure you include a template in your HR audit checklist (check out this HR audit checklist template if you don’t already have one!)

Here are a few examples of the information you can collect with a succession plan template:

• Current key employees and potential replacements
• Key skills and experience that each position requires
• Candidate training and/or experience level
• The time it would take to onboard a candidate for an existing position
• An overview of upcoming vacancies (for example, key employees that are due to retire)

In order to create and manage an effective business succession planning strategy, you need to use the right succession planning tools. These are the tools that will help you identify which candidates could potentially be future leaders at your organization. They also help you identify potential succession gaps and map the right candidates to the right positions.

Ideally, you should be using a range of tools to help you get a full picture. Here are a few examples of succession planning assessment tools that will help you with this:

• Personality assessment tools : to help you get a comprehensive picture of your existing culture (e.g. tools for tracking motivation levels)
• Behavioral assessment tools : to help you identify and analyze employee leadership skills and assess how they behave at work (e.g. situational judgment tests)
• Cognitive assessment tools : to evaluate critical thinking and reasoning skills related to performance (e.g. a cognitive aptitude test)
• 360-degree feedback : to gather valuable input from employees and their peers in order to understand their readiness to take on future roles (included in most performance management software solutions)

Succession Planning Software

Finally, once you have designed and implemented your business succession plan, you need to regularly monitor progress. This will help you determine if your plan is working and if potential candidates are on track to reach their succession goals.

And this is where succession planning software can help.

Succession planning software isn’t as daunting as it sounds. In fact, most HRIS systems can provide you with the data you need.

The first thing you need is access to key metrics and KPIs . This includes turnover rates, retention rates, cost-per-hire, time-per-hire, and the rate of planned positions being filled. You also need to evaluate performance metrics to determine if business succession planning candidates that have taken on their new role were ready for it.

Did they achieve the training and experience they needed during the development phase in order to take on their new leadership role? If not, what could you have done better?

By analyzing the right data, you can determine what areas of your business succession planning strategy you need to work on in order to continuously improve the quality of your succession candidates. And by using the right HR software and performance management software you can easily identify talent gaps, make comparisons between employees, and simplify the succession management process.

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Business succession planning examples.

Succession planning and the Peter principle

Have you ever come across a manager or a key position employee and wondered how they reached that position? Yet, when speaking to them, you realize they’re just not the right fit for the job. If you’re nodding your head vigorously in agreement, then you’ve just been introduced to the Peter Principle.

The Peter principle, a concept by Laurence J Peter, states that “People in a hierarchy tend to rise to their “level of incompetence.”

The further explanation of the principle is that an organization often promotes or prepares people for higher or key positions based on their past performance. This goes on until the employee is no longer competent in their position. Are you wondering how the Peter principle is connected to examples of succession planning? Well, it is one of the most critical factors.

Let’s take an example to make it clearer.

A sales manager at Company X has suddenly resigned due to health issues. The company needs to fill this key position immediately so as not to disrupt the operations. They promote the salesperson within the team that has the best sales track record. That’s only fair, right? However, it so happens that although this newly promoted employee has an outstanding sales record, they might find it extremely difficult to execute their role as a manager. A good sales manager needs a different set of skills and competencies than a salesperson. They could lack necessary skills, like being able to motivate their colleagues, distributing tasks and responsibilities, communicating with different management levels, conflict management skills, etc.

This may lead to underperformance and feelings of demotivation, frustration, and anxiety. On the other hand, the succession planning model involves building core strategies so that you do not fall prey to the Peter Principle and can fill in a key position with the right employees at the right time. It includes:

•  Identifying the requirements for key roles

Developing a succession planning model with correct assessment and training tools

• Investing in the talent management processes

The three points above can help prevent organizations from falling prey to mediocre succession planning management and assist them in taking effective leadership decisions based on the value they will bring in the future.

Succession planning model with examples

Succession planning means an organization is prepare d to replace key employees who leave their positions , suddenly or otherwise . Each step in this process is critically important to ensure that your successors will add to the company’s future success. Below are examples for each step to help you better understand the sample succession plan document . 

Identifying requirements for key roles

It’s often only after someone leaves an organization that a gap in knowledge and expertise is felt. This gap can take a while to fill and could complicate business operations. Therefore, succession planning examples emphasize identifying the key roles, skills, and competencies needed for the organization to constantly be operating at peak efficiency. There are generally two levels of management that need to be a part of identifying the requirements of key roles and positions. Below are the examples of responsibilities of each department in succession planning.

The managers of each department should actively recognize the key areas and positions that could disrupt operations if left vacant. They must identify the knowledge, skills, and abilities needed for key positions. If they notice any critical gaps, they should tailor the learning and development plans accordingly. Below are some responsibilities that managers must perform to implement a successful succession planning model.

• Discuss career development with members of their teams
• Create opportunities for employee development
• Organize performance review meetings to understand if there is a need for further development.

Human resources department

The HR department plays a crucial role in succession planning. They advise managers to identify vulnerable positions that may soon fall vacant. For example, the employee in question could be retiring, moving to another city, or taking up a job in another company. This oversight allows managers to be alert and provide ample time to prepare a successor for a key position on time. Their responsibilities include:

• Engaging in ongoing discussions with new/old prospects
• Organizing performance management exercises and talent review meetings
• Consulting with different departments to understand the current and future human resources
• Evaluating succession planning initiatives
• Helping to communicate key areas and positions to employees.

Once the people who are part of the succession planning process are recognized, the next step is to equip them with the right tools. These tools can help to match the right employees that will fit the future needs of the organization and help it achieve greater and consistent success. Below are some succession planning tools that can help walk you through the process.

Outlining the succession plan

Start with ensuring that you have a clear outline of the aim of the succession plan. A successful succession plan must include the below criteria:

• A focus on progression and movement as well as on promotions for development purposes.
• Guides for individual development
• The ability to empower employees to self-nominate.
• Ensuring that people on the plan are very well-versed with how it works.
• Providing rewards and recognizing employees that support the plan.
• An element to “retain” and improve individual performers.
• External candidates to spur competition

Establish a board of key decision-makers

All the key decision-makers must be on the same page so that the plan is effective and can be enacted when the need arises. These key decision-makers constitute a board composed of managers, HR, stakeholders, C-suite, and the owner or stockholders.  Together they can plan to grow and develop internal prospective candidates; note down the succession timetable, and create a contingency plan in case of emergency.

Selecting potential candidates

Selecting and analyzing suitable candidates can ensure that the employees do not feel forced into a position they may not wish to obtain or that is appropriate for them. It’s possible that, when introducing a range of evaluation methods for prospective candidates in your succession planning model, a sense of favoritism may seem to come into play. However, it’s necessary to make clear that decisions are based on quantitative and objective measurements that reduce bias, and the influence of organizational politics. A good way to achieve this is to practice transparency in the evaluation process.

Recording technical skills

Listing down the technical skills, educational background, and work experience required for the key position can help select candidates that have the right capabilities to perform the job. These include requirements like:

• Education and certifications
• Work experience
• Strengths and weaknesses
• Promotion readiness
• Reference checks

Psychological profiling

Psychological profiling has become a top-rated tool to select suitable candidates. This is done through psychometric assessments and interviewing, to identify any blind spots or characteristics that can derail the prospective candidate.

Selecting a training plan and activities

Now that the prospective candidates are identified, it’s time to develop a training program to support their growth. There are numerous succession planning models designed to develop the current employee into future leaders as the elected successors within the organization.

Stretch assignments

This method provides an opportunity for the selected candidate to demonstrate additional capabilities. Examples of stretch assignments include developing a new market entry plan, leading a new technology platform, or any tasks that are currently beyond their level of knowledge or skill and that will challenge them to learn and grow.

Formal training

This includes investment in academic programs such as higher education or enrolling them in any formal programs that can help them to upskill. Take a look at the most sought-after skills of 2022 here.

Motivate your employees to take charge of their career

The success of succession planning depends on fostering and promoting the continual development of employees. When you encourage a learning culture within your organization, your employees will be prepared and motivated to tackle bigger challenges. In our guide, you can understand the concept of upskilling, reskilling, and cross-skilling that can be detrimental to future-proof your workforce. 

Leadership coaching

In this method, an experienced senior employee coaches and prepares the selected candidate for the demands of a more leadership-based role. The importance of this type of coaching is evident through leadership development statistics that show that 71% of companies do not feel their current leaders can carry their organization into the future.

Measure and evaluate the progress

To ensure that the succession plan is working, you should review and evaluate the model and its effectiveness.

Here are some useful metrics to measure and evaluate the success or failure of the succession planning model.

• The percentage of positions filled internally as compared to external hires: as external hires are more expensive; a high rate of internal placement indicates that the plan has been successful.
• The percentage of employee promotions without taking tenure into account: while generally, promotions often go to candidates with the longest tenure, an effective succession plan selects the candidates most aligned with the key position.
• The percentage of promoted employees that are promoted again within 3 years: this is a clear indication that the first succession strategy was successful as the employee has been able to exceed their job requirements.
• The percentage of quick fill-in when a sudden job opening occurs wherein preselected employees can immediately fill a sudden “unplanned” opening without a loss in productivity.

Investing in the talent management processes 

Effective succession planning includes making judgments and predictions to identify high performers who can succeed in meaningfully more significant or more challenging roles. Thus, the question arises, “What certainty do you have that you are investing in the right people? What if you are a victim of the Peter principle?”

Take a look at statistics that show how catastrophic things can be when businesses fail to invest appropriately in future employees.

• 24% of employees worldwide are “actively disengaged.”
• 75% of companies agreed that it was more time-consuming this year than last year to find the right talent to fill positions.
• The cost increased to replace employees have increased to 30% of an annual salary .

These numbers can affect both employee happiness and your company’s overall productivity. The solution to this nerve-wracking dilemma lies in investing in a talent management process that relies on scientifically proven processes to help organizations tackle the challenges of succession planning.

To understand how HRForecast can help you prepare for key people leaving or any questions that aren’t covered here, get in touch with one of our experts.

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3 succession planning examples and best practices.

Every organization can expect to deal with leadership changes, especially given that we’re seeing a record number of CEO turnovers this year. 

But, without the right approach in place, leadership transitions can put companies in a vulnerable position – from stock prices taking roller-coaster rides to employees feeling anxious about the ongoing changes. 

That’s why it’s critical to have a thoughtful succession plan in place. 

In this post, we’ll provide best practices to keep in mind for succession planning and share examples of successful leadership transitions. 

3 best practices for developing a succession plan

A seamless leadership transition doesn’t happen overnight. That’s why a key part of succession planning is being able to think ahead at least three to five years. Here are four best practices to help you stay ahead of the curve. 

1. Cultivate a pipeline of talent 

Building a high-quality talent pipeline is a challenging and time-consuming process. In fact, 74% of public and 52% of private companies reported that maintaining a robust talent pipeline is the most difficult aspect of CEO succession planning. 

Unfortunately, the pipeline is something that many HR teams tend to neglect. 40% of companies report not having a single internal candidate to replace the CEO should he or she exit the position. This puts the company in a vulnerable position and will ultimately cost the company in several ways, from paying for executive search costs to seeing turnover amongst high-potential employees (HiPos) who feel overlooked when they’re not considered for leadership positions.

That’s why, even though you might not have any open positions now, it’s important to start cultivating that pipeline today. This means accurately identifying who your HiPos are and making sure you’re constantly adding new candidates into the mix. 

Want to learn how to identify, retain, and develop the HiPos in your organization?

Check out our ebook . 

2. Invest in the ongoing development of leaders 

Simply having a pipeline isn’t enough for succession planning. Companies also need to invest in the leaders they’ve identified and make sure they’re prepared for executive roles when they become available. In practice, this means helping HiPos develop relevant leadership skills, align with the company culture, and have opportunities to be exposed to various roles and responsibilities.  

On the surface, companies invest a lot of resources in training their leaders. A Training Industry study found that organizations around the world spend $370 billion per year on leadership development . Yet 74% of executives were not prepared for the challenges they faced in senior leadership roles. This indicates a gap between the type of training that’s being provided and the intended effectiveness. 

We’ve found that one of the best ways to invest in the growth and development of these leaders is to offer mentoring and leadership coaching programs. Not only are mentoring and coaching the two most unmet needs of HiPos , but we’ve also found within our own dataset that 92% of mentees report improved confidence in handling challenges and increased skills for the job . Similarly, the International Coach Federation also reports that 86% of companies report that they recouped their investment in coaching and more .

3. Regularly monitor and assess your leadership bench 

Organizations and people are constantly evolving. That’s why it’s necessary to regularly monitor and assess your leaders. This process ensures the HiPos leaders in your pipeline are still aligned with the needs of your company. It can also help you identify any new or rising HiPo leaders you may have missed in your initial assessment. 

For example, you may have identified a promising HiPo leader in your talent pipeline. But, after a few years at your organization, it’s evident that they’re not growing in the direction that you anticipated. Without regularly assessing this individual’s performance, you wouldn’t be able to identify that they’re no longer a good fit for the executive position they were originally being considered for. And you may be passing up a better fit for the role in the process. 

3 succession planning examples 

Given the public nature of leadership transitions, we’ve seen many succession plans in action. While not all of them go as smoothly as anticipated, some companies do an excellent job of putting the best practices we outlined above into practice. 

McCormick & Co.

In 2008, spice and flavorings giant McCormick & Co. transitioned its CEO position from Robert Lawless to his successor Alan Wilson using a succession model that was praised for being thoughtful, comprehensive, and well-executed. Lawless made a point of establishing a transparent timeline of five years, planning his transition to a non-executive chairman of the board role. He also tied part of his discretionary compensation to succession planning, proving his investment in finding and preparing the right person. 

What McCormick & Co. did right:

• Developed its own robust succession planning over the course of many years, taking its time to intentionally identify and create thorough development strategies for all senior executives
• Monitored the progress of its potential candidates over several years before settling on Wilson, who demonstrated a strong fit with the company culture and a deep understanding of front-line issues

Virginia Rometty’s succession as CEO of IBM in 2012 is also a case of internal succession planning done well. Rometty’s advancement worked well because of her cultural fit, and because of the professional development systems that allowed her to succeed based on merit and become IBM’s first female CEO. HR analyst Josh Bersin said of Rometty’s appointment: “IBM’s talent management process is very mature, integrated, and global. At the executive level, the company takes development planning and succession very seriously.” 

What IBM did right:

• Rometty started at IBM as a systems engineer , eventually climbing the ranks upward to SVP and Group Executive for Sales, Marketing, and Strategy before being offered the CEO role
• She’s a prime example of an incoming CEO who was well-entrenched in the company culture, known to the board, and had a sterling track record

Barneys New York 

Luxury retailer Barneys New York went through a long-planned change as Daniella Vitale stepped into the CEO role in 2017, replacing her predecessor and mentor Mark Lee. With her long tenure in the high-end fashion retail industry, Vitale was considered “uniquely qualified” to run Barneys. She worked as an assistant buyer while still in school at LIM College and moved her way up through lateral moves between major brands, including Ferragamo, Armani, and Gucci, before joining Barneys in 2010 as a Chief Merchant.

What Barneys New York did right:

• Vitale was given substantial leadership opportunities and had experience running nearly every facet of the organization by the time she was offered the CEO position 
• Lee spent a long time investing in Vitale’s success, and he was instrumental in putting together a formal five-year succession plan specifically for her

Succession planning is a long and laborious process. But done right – by cultivating a high-quality talent pipeline, developing your HiPo leaders, and regularly assessing fit – it can make an otherwise stressful transition much smoother. Want to learn more about how to identify and develop the HiPos in your organization? Download our ebook here . 

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Your Business Needs a Succession Plan: Here Are the Basics

Succession planning may be the single-most neglected aspect of business ownership. Don’t make the same mistake that so many others do. Instead, get started with your plans today.

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In Part 1 and Part 2 of this series on selling your business, we’ve examined the questions facing owners who entered 2020 ready to make their move, breaking down how the COVID-19 pandemic changes the situation and how to increase a business’s value if you decide to delay bringing it to market. There’s another way forward, though — standing pat and not selling.

Tax Wrinkles for Work-at-Home Employees During COVID-19

If you were a business owner who was considering putting your company on the market but decided not to sell (or at least not anytime soon), what steps should be you taking now? The goals are to ensure preservation of the current business, as well as provide for an orderly and stable future transition when the proper time to sell arrives. Accordingly, the first and most critical step is setting a goal to implement both a business continuity plan and a business succession plan. The sooner, the better.

We have all learned a valuable lesson from the COVID-19 pandemic: A significant business disruption can happen with very little advance notice, and not being prepared can be disastrous.

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Developing a Business Continuity Plan

Armed now with the knowledge of how the pandemic impacted your own business operations, you can now plan. Did the travel restrictions impair your sales efforts? Did the substantial increase in employees working remotely overburden your IT infrastructure? Did your vendors and suppliers make requests that you couldn’t respond to effectively?

The goal of a business continuity plan is to identify that which is essential and that which is not and to place the business in a position where it can continue to operate during a disruption. Ideally, the business continuity plan would include:

• A comprehensive strategy for keeping the business operating day-to-day.
• An assessment of essential and non-essential operations and processes.
• An analysis of key employees/positions and how each would be impacted by a disruption and, specifically, the potential loss or unavailability of key employees.
• A review of facilities and analysis of how the business operates if one or more location becomes unavailable.
• A plan to protect, secure, back up and replicate, if necessary, critical data systems, infrastructure and applications.

These are only a few of the many issues for consideration when developing a business continuity plan. Many of the details are industry-specific, and you need to work with your key employees and advisers to address the challenges likely to face your particular industry. Consider meeting and discussing with your vendors, customers and suppliers the challenges that were presented by the COVID-19 restrictions. Get their views on how things could have been handled more effectively. Information is key to developing a plan that will actually work.

There’s Never Been a Better Time for Business Owners to Make a Move

Once you develop a plan, revisit it regularly and adjust and update it so that it is always ready to go when you need it. If, for example, your CFO retires, you will need to consider how the loss of that person and their particular knowledge will affect the plan. Will their successor have the wealth of historical knowledge necessary to obtain and transfer information in a timely manner? If not, consider how you address the gap. Every organization seems to have those “go-to” people who have been there forever and without whom things run much less smoothly. Consider how the plan is impacted if those individuals are unavailable. The key takeaway is that the plan needs to grow and change with the business in order to work effectively when the disruption happens.

Developing a Business Succession Plan

No matter what your plans are for the future of the business, eventually, you will transition it to someone. Perhaps that someone is a purchaser, or perhaps you will transition to your family, key employees or some combination of the two groups. The point is that transition will eventually be unavoidable. Ideally, you get to control and be part of the process. That, however, is not always the case. Unexpected death of an owner, key executive or employee can cripple a business if no successor has been identified and there is no plan for transitioning management.

Every business succession plan looks different. Not every business owner wants to transition their business in the same way or at the same time. Some owners want to exit completely at a certain date. Others want to stay involved to a lesser degree over time but never exit entirely. These issues, as well as many others, must be considered. The plan should be designed to:

• Address anticipated timing.
• Identify one or more successor.
• Address the value of the business.
• Provide for implementation of the plan.
• Discuss communication with employees, customers and family.
• Include tax planning.
• Provide for contingencies.

In my long career as a business lawyer, I have observed that succession planning is the single-most neglected aspect of business ownership. Maybe it’s human nature to think that we’ll always have time to deal with it later. The truth is, if you don’t get around to it and the unexpected occurs, the impact on your family and employees could be devastating. Also, we see many executive job candidates asking about a company’s transition planning before they are ready to commit to working there. Lack of a transition plan can therefore have a negative impact on attracting and retaining talented employees and executives.

The best way to approach the process, in my experience, is by dedicating a year to the effort. Spend three or four months discussing the process with your family, executive employees, your bank and other key stakeholders. Get your lawyer and accountant or other tax adviser involved from the outset. Develop and refine the plan over the next few months, and implement it over the last three or four months. One year is what you need. Negotiate the fees with your professional advisers in advance and get a budget for each phase. When it’s done, you’ll thank yourself, and your business will be better off for having gone through the process.

Final thoughts

As touched on in this article and the other parts of this series, the COVID-19 pandemic was and remains a major disruption that couldn’t have been foreseen by most business owners at the start of 2020. The confusion of the early days, however, is beginning to clear. For owners who were planning for a transition, there is path forward — be it bringing the business to a changed market, delaying the decision or staying put for a time.

No matter the decision, proper preparation and organization will make it easier.

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Patricia Farrell is a corporate law attorney in Pittsburgh. With a primary practice in business services, she regularly represents privately held businesses in mergers, acquisitions, divestitures and other major transactions, both in the United States and in Europe, Asia and Australia. She also has a broad corporate practice where she assists with corporate governance as well as succession planning for business owners and a variety of other day-to-day business issues.

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Top 10 Succession Plan Example Templates with Samples

Kavesh Malhotra

The  succession planning process   involves identifying critical positions within your company and developing processes and action plans to fill those positions. By adopting a comprehensive approach to both present and future objectives, this type of planning ensures you have the right people doing the right jobs, both now, and in the foreseeable future (at least five years or more).

By engaging in long-term succession planning, organizations can increase their competence and market relevance. The uncertainty of business environment or political vacuums are not unduly worrying for firms that have a firm succession planning process in place. This happens as there is no time lag in continuity at the top; such businesses have already documented and developed ways to map personnel with the necessary skills and knowledge to the critical job positions and roles to ensure business continuity.

An analogy to business succession planning is observed in the field of sports or even in politics (to a degree).

If a star player or a captain retires, the team cannot be allowed to fall off the cliff of high-performance; the wins have to keep rolling in, hence the need for an equally competent successor, without delay or hesitation. This is why organizations use succession planning to ensure they are prepared for the future.

Succession planning emphasizes leadership development, which can take time and money, but it is always wise to develop bench players, as well, to step up and take on a more critical role in the future.

There should be a succession strategy in place for every firm. Succession planning is a must for three scenarios. These are:

1. Technical leadership roles

If you must fill a leadership role requiring technical abilities, replacing a technician with years of experience in specialized software can be challenging. To plug this eventuality, include a buffer in the recruiting process to ensure the right candidate can be trained and developed.

2. Senior executive roles

As senior executives approach retirement, succession planning is critical. The earliest possible start to this process is necessary to find and train the ideal applicant for the job, again a process that takes years.

3. Family-owned businesses

It is essential to have a documented succession plan for your family-owned company rather than relying on informal or verbal succession arrangements.

With this primer on how to ensure you have no business uncertainty as to the future in terms of the top guys, here’s SlideTeam’s top 10 succession plan example templates to help you ensure you can offer the best solutions to your clients, the top management if you work as HR head, or a business owner.

These templates are 100% editable and customizable, but the given framework is an apt fit for all your needs. Just key in your own data and the job is half-done. Now, just find the right guy and add to the template.

Let’s explore these best-in-class now.

Template 1: Business Succession Planning PowerPoint Presentation Slides

This PPT Template allows you to incorporate and understand aspects, such as critical position, planning metrics, employee competency, risk of loss, and many more. Use this talent and career planning presentation template to ensure stakeholders realize the importance of succession planning. Also, brand yourself as a clear leader in resolving obstacles to succession and career planning with the deployment of this template.

Download Now!

Template 2: Succession Planning PowerPoint Presentation Slides

Use this template to plan your talent needs, budget, and the potential to develop new skills. Make strong and purposeful succession planning to identify management needs of your business and lead it to success. Download this impactful template to understand the areas where you need to step in to ensure smoother succession planning and clear impediments to it.

Template 3: High Potential Employee Succession Planning PPT Presentation Slides

Create a report for every working individual to analyze their performance using this high-potential succession planning template. Incorporate visuals to demonstrate ways to create career opportunities and raise your company's productivity. Download this template now and get an outstanding succession planning PPT, complete in all respects. Alongside, for planning best talent management, click on our SlideTeam’s blog featuring the best talent management templates .

Template 4: Customer Success Playbook Succession Planning Grid to assess employees

Use this outstanding succession planning PPT presentation template to assess your employees’ performance. The aim is to see who can fit in the bill for that steep move up the ladder, when needed.  A sit-in through this presentation helps employers understand which employees need improvements and in what areas. Download it now to generate better performance and motivate employees.

Template 5: Succession Planning Process PPT Sample Presentation

Want to create a perfect succession plan? Download this Succession planning Process PPT Sample Template to generate a step-by-step plan. Demonstrate the level of competition and success at levels such as business platforms and strategy consulting. The aim is to ensure that the mapping of the personnel to the job role is perfect, and is akin to a round peg in a round hole, and so on.

Template 6: Succession Planning Template PPT Sample Download

If you plan to pass the leadership to another employee or a group of employees, you need to have a well-defined, clear structural guideline manual in place. Using this template, you can provide details on what job roles or responsibilities a particular employee will take over, when, and how much time the transition will take. Download this template now and create that perfect and strategic succession planning. Use this template to also showcase your preparedness for succession planning, as this actionable presentation divides potential candidates into UP-NEXT, ON-DECK and HI-POTENTIALS.

Template 7: Succession Planning Process PPT Model

With this Succession Planning Process PPT Model, you can aim at creating continued smooth leadership for your organization, and it includes key aspects of replacement planning. Download now to help your company stay ahead, with crystal-clear processes on the leadership issue.

Template 8: Succession Planning PPT Presentation Examples

Use this Succession Planning PPT Presentation to improve your business model. This template allows you to identify the ideal leader for your organization to meet target goals. The USP here is the team-wise segmentation that this design provides. Download and get going with this extraordinary template.

Template 9: Integrated Talent Management Process with Succession Planning

Create the perfect succession plan using this PPT Template, which gives you the design to do this, completely and successfully, in seven process stages. Using this presentation template, highlight talent strategy & planning, leadership development, performance management, and other vital aspects. Download now and take full advantage of this template.

Template 10: Key Best-Practices For Succession Planning Model

Our PPT Template will help you demonstrate the four key elements: planning, developing, monitoring, and reviewing in succession planning. Evaluate your employee’s performance and build strategic organizational planning and management. Assessment of key talent is one rea where this listing of best-practices will make you a star, as you present this template before your audience.

Bottom Line

Succession planning is an essential process for any organization. This ensures that businesses can continue their mission and operation without disruption. It involves creating a plan for identifying, training, and designing potential successors to key leadership positions over time and assessing and developing current employees, for future leadership roles.

These customizable templates provide you the structure, the format and even offer the flexibility to present this powerful idea into a simple PowerPoint format. Just to reiterate, the customizable nature of the templates is a bonus, which is what makes these really yours. Your savings in time and money are humungous, if you give these templates a chance to augment your already-rich knowledge base.

FAQs on Succession Plans

What is the purpose of succession planning.

Succession planning aims to prepare for any staffing and leadership needs that may arise due to retirement or other events. This process is broken down into steps such as creating a succession planning model chart and selecting one or more successors for critical roles. Once successors are identified, they should be trained for their next-level roles.

What are the five steps in succession planning?

STEP 1: Identify Key Positions and Areas

STEP 2: Determine Capabilities for Important Positions and Areas

STEP 3: Determine each chosen employee’s competency and assessment grid  and evaluate them against the needed competencies.

STEP 4: Create and implement plans for transferring knowledge

STEP 5: Design the effectiveness and  succession plant flowchart.

What is succession planning as an example?

The best example of succession planning is:

●       IBM

An example of internal succession planning is Virginia Rometty's appointment as the CEO of IBM in 2012. Because Rometty fit in with the company's culture and had access to professional development programs, she was able to develop and ultimately become IBM’s first female CEO, after having risen through the ranks.

What are the four stages of succession planning?

• Establishing Goals and Objectives: This involves identifying the organization’s current and future needs and developing a plan to meet them.
• Identification of Potential Successors: This stage involves researching potential successors and assessing their skills and abilities to meet the organization’s needs.
• Preparation and Development: This stage involves providing training and development opportunities for potential successors, such as mentoring and coaching, to prepare them for the additional responsibilities.
• Transition and Implementation: This stage involves the actual operationalization of the succession plan, including the selection of the successor, the communication of the change to the organization, and the integration of the new person into the organization.

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Azenta Announces CEO Succession Plan

CEO Dr. Stephen Schwartz to Retire; Search Underway to Identify Successor

BURLINGTON, Mass. , May 8, 2024 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today announced a CEO succession plan, under which CEO and Board Director Dr. Stephen Schwartz will be retiring from Azenta after more than 14 years of service. Dr. Schwartz will continue to serve as CEO until a successor is appointed to ensure a smooth transition.

Dr. Schwartz's retirement follows a discussion with the Board as part of the company's active succession planning process. In connection with that process, the Board has initiated a search to identify Azenta's next CEO, and has engaged Heidrick & Struggles, a leading executive search firm, to assist in the process of identifying and evaluating candidates.

Dr. Schwartz said, "It has been a privilege to be a part of this incredible company. I am proud of Azenta's achievements and I want to express my deepest gratitude to the terrific Azenta team. Together, we have undergone an impressive and complex transformation from semiconductor capital equipment company, Brooks Automation , to the leading life sciences business Azenta is today. I look forward to supporting a smooth transition to the next CEO as Azenta prepares to embark on its next chapter."

Frank E. Casal, Chair of the Board, said "On behalf of the Board, we are grateful to Steve for his unwavering commitment to Azenta for more than 14 years. Under his leadership and vision, Azenta successfully transformed into a standalone, publicly-traded, pure-play life sciences company, operating around the world with annual revenue of over $600 million and more than 3,000 team members. We thank Steve for his many contributions to Azenta's success, his collaborative partnership in the Boardroom as well as his commitment to leading the business, as we identify the best possible successor."

Today, Azenta also reported its earnings results for the second quarter of fiscal 2024.

About Dr. Stephen Schwartz

Dr. Stephen Schwartz joined Azenta in April 2010 as President and was appointed CEO in August 2010 . During his tenure as CEO of Azenta , Dr, Schwartz oversaw the $3 billion sale of Azenta's Semiconductor Solutions business to Thomas H. Lee Partners , and established Azenta as a global, pure-play life sciences company with annual revenue of over $600 million . From November 2018 to January 2024 , Dr. Schwartz served on the board of directors of Spire Inc., a publicly traded natural gas company. Dr. Schwartz received his BSEE, MSEE, and Ph.D. in electrical engineering from Purdue University . He also holds an MBA from the University of Chicago .

About Azenta Life Sciences

Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ , FluidX , Ziath, 4titude, Limfinity, Freezer Pro, Barkey and B Medical Systems .

Azenta is headquartered in Burlington, MA , with operations in North America , Europe and Asia . For more information, please visit www.azenta.com . 

INVESTOR CONTACTS:

Yvonne Perron Vice President, Financial, Planning & Analysis and Investor Relations [email protected]  

Sherry Dinsmore [email protected]  

MEDIA CONTACTS:

Robin Weinberg , Emily Claffey [email protected]

SOURCE Azenta

In This Story

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