Most growing companies don't have a succession plan. They have a founder, a few key people and the hope that nobody important leaves at the wrong moment. Succession planning replaces that hope with a short list of critical roles, named successors and a plan to get them ready. It doesn't require a big HR team.
- Focus on a handful of critical roles, not the whole org chart.
- Rate readiness for specific roles, not abstract potential.
- Every successor needs a development plan with real stretch assignments.
- Review twice a year. A plan in a drawer is not a plan.
Step 1: Identify critical roles
A role is critical if losing the person would seriously hurt the business and the role is hard to fill quickly. In a 200-person company that's often 8 to 15 roles: leadership team members, key technical experts and people who hold critical client relationships.
Step 2: Define what success in each role requires
List the four to six capabilities that matter most, including behavioral ones like decision-making under pressure, giving feedback and leading change. Be specific: "has led a team through a difficult reorganization" beats "strong leader."
Step 3: Identify and assess candidates
Look beyond the obvious deputy. Use evidence: performance history, behavioral assessments, practice scenarios and input from several people, not just the incumbent's view. Rate readiness for each specific role:
Readiness ratings are more useful than abstract potential, which is the main weakness of the 9-box grid.
Step 4: Build a development plan for each successor
- Two or three priority gaps, based on the role requirements and the assessment.
- Stretch assignments: leading a project, covering for the incumbent, owning a client.
- Practice for the hardest moments of the role, such as difficult conversations and negotiations.
- A mentor, often the incumbent.
Step 5: Review and update
Revisit the plan at least twice a year. People grow, leave and change direction; so does the business.
Succession planning template
| Critical role | Risk if vacant | Successor(s) | Readiness | Top gaps | Next action |
|---|---|---|---|---|---|
| Head of Operations | High | Plant manager | 1-2 years | Budgeting, leading managers | Own next year's budget draft |
| Key account lead | High | Senior account manager | Ready now | Executive negotiation | Co-lead next renewal |
Common mistakes
- Naming one obvious successor and stopping there.
- Relying only on the incumbent's opinion.
- Assessing "potential" without defining it.
- Making a plan and never developing anyone.
Cairo helps growing companies run this without a large HR team: behavioral profiles across 80+ indicators show strengths and gaps for each candidate, and each gap connects to a development path with courses and practice scenarios. See how to build a leadership development program.
Frequently asked questions
What is succession planning?
The process of identifying critical roles, naming potential successors and developing them so the business can keep running when key people leave or move.
Do small companies need succession planning?
Yes. Smaller companies are often more exposed, because a few people hold critical knowledge and relationships.
How many successors should each role have?
Ideally two: one closer to ready and one longer-term candidate.
How often should a succession plan be reviewed?
At least twice a year, and whenever a critical role or strategy changes.
Sources
- DDI, Global Leadership Forecast 2025.
- Silzer, R., & Church, A. H., The pearls and perils of identifying potential, Industrial and Organizational Psychology, 2009.
- Lombardo, M. M., & Eichinger, R. W., The Career Architect Development Planner, 1996.
