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Succession Planning:  7 Step Process for High Performing Organizations 

 

In many organizations, talent reviews are among the most important annual talent management activities because they connect employee development, succession planning, and business priorities into one integrated process. A talent review is a structured method for evaluating employees’ performance, potential, skills, and readiness for future roles. Its purpose is to ensure the organization has the right people in the right roles while building a strong leadership pipeline.

Each April, many large and mid-sized organizations (including numerous Fortune 500 companies), conduct firm-wide talent reviews for their respective businesses. Leaders are responsible for completing these reviews, consolidating the data, and presenting succession plans to executive leadership. At every level, these leaders are challenged to answer several critical talent questions:

• Who has demonstrated consistently strong performance in their current role?
• Who has the potential to take on a larger role in the next 6, 9, or 12 months?
• Who should be identified as the next successor for critical roles?

If you have led in a mid-sized or large organization, you are likely familiar with the annual talent review process. A robust process typically includes seven critical steps:

1. Define Evaluation Criteria
2. Complete Manager Assessments
3. Hold Calibration Sessions
4. Segment Talent
5. Discuss Succession Needs and Talent Risks
6. Create Development Plans
7. Follow Up and Monitor Progress

Throughout my career, I have seen firsthand how the talent review process can shape an organization’s future. Firms that do this well take a structured, intentional approach to all seven steps. They also go further by ensuring that every key talent employee has a development plan in place.

Best-in-class companies invest heavily in assessment tools such as Hogan, Gallup Strengths, DISC, 360s, and similar instruments to validate whether identified successors truly have the potential to take on larger and more complex roles. Few decisions are more damaging than placing the wrong person in a critical succession role. For that reason, effective succession planning relies on objective, validated talent data, not solely on the subjective perspective of the individual presenting their views.

At times, I have seen how bias and personal relationships can unintentionally influence talent decisions, weakening the overall succession planning process. A leader’s perspective is critically important; however, it cannot be the only data point used to determine whether someone is truly a “ready now” successor. The analogy I often use is the difference between a Ready–Aim–Fire talent strategy and a Fire–Aim–Realize They’re Not Ready talent strategy.

The strongest organizations balance the input of the leader advocate with a data-backed approach, making deliberate, informed decisions before placing someone in a critical role.

There is no magic formula for repairing a succession plan once it has gone wrong. That’s why completing all seven steps of the talent review process is essential before making any critical succession decision. Too often, organizations place someone into a larger role before that person has had a meaningful development plan, the right preparation, or clear evidence of readiness. This is detrimental to the firm, the culture, and, most importantly, the employee who may not be ready for the challenge.

When succession plans fail, executive and senior leaders may scramble to hire an executive coach to “fix” the problem. But in most cases, it’s too late. The employee is not broken; the process was incomplete. Coaching can be powerful, but it cannot fix or fully compensate for a succession decision made without the necessary information: data, development, and intentional preparation.

Great talent decisions rarely happen by accident. They are the result of a disciplined process, thoughtful evaluation, and a commitment to seeing people for both their performance and potential.

As you strengthen your leadership pipeline, invest the time to complete every step of the talent review process with purpose. When you do, the data will speak for itself, helping you identify the individuals who are genuinely prepared to take on greater responsibility and lead your organization forward. When it comes to succession planning, it’s time to take the pressure off your Talent Narrators and let the Talent Data do the heavy lifting. You will not be disappointed.

To learn more about True Peak Coaching, please visit www.truepeakcoaching.com. I welcome the opportunity to help your organization reach its True Peak.