What is the purpose of succession planning?

The purpose of succession planning is fundamentally about ensuring that an organization is prepared for future leadership needs and maintaining business continuity. This process involves identifying and developing internal candidates who can fill key positions as they become available, thus safeguarding the organization’s future. By focusing on internal talent, succession planning helps to cultivate a pool of knowledgeable and capable leaders who already understand the company’s culture, values, and operational procedures. This proactive approach minimizes disruptions that can occur when leadership roles are vacated and ensures that there are qualified individuals ready to step up into these critical roles.

In contrast, evaluating the current performance of employees is typically part of a performance management process, which serves a different purpose. Hiring new employees from outside the organization does not align with the strategy of succession planning, which emphasizes internal development. Additionally, while reducing training costs may be a beneficial outcome of effective succession planning, it is not the primary goal; the focus is on leadership readiness and internal talent development.