Succession planning is the process of identifying and developing internal personnel to fill key leadership positions within an organization. This strategic approach ensures that the business can continue to operate smoothly when key individuals leave, retire, or pass away.

Characteristics
– Proactive Approach: Involves planning for future leadership needs rather than reacting to vacancies as they arise.
– Talent Development: Focuses on training and mentoring potential successors to prepare them for future roles.
– Risk Management: Helps mitigate the risks associated with losing key personnel by having a plan in place.
– Business Continuity: Ensures that the organization can maintain operations and achieve its goals without disruption.

Examples
– Family Business Transition: A family-owned business may identify a family member who shows interest and capability to take over leadership, providing them with mentorship and training.
– Corporate Leadership Development: A large corporation may implement a formal program to identify high-potential employees and provide them with leadership training, job rotations, and mentorship opportunities to prepare them for future executive roles.
– Nonprofit Organization Planning: A nonprofit may create a succession plan for its executive director to ensure that the organization continues to thrive and fulfill its mission after the director’s departure.