A Guide to Succession Planning in Organisations: Part 3

Succession planning is about future-proofing organisations by cultivating adaptable, emotionally intelligent leaders who inspire and navigate complexity. Beyond filling roles, it prepares talent for unseen challenges, blending rigorous evaluation with growth opportunities. By unlocking latent potential and aligning leadership with organisational values, succession planning secures both the next generation of leaders and the enduring success of the organisation.

As I hope the first two articles in this series have now made clear, succession planning is critical not just for filling immediate vacancies but for ensuring the steady progression of leaders through the organisational hierarchy. In this third article of the series, I focus on evaluating leadership potential beyond the obvious, with a particular emphasis on the skills and attributes that enable managers to ascend to more senior roles. While technical competence and a history of achievements remains important, true leadership readiness is often demonstrated through subtler qualities like strategic thinking, emotional intelligence, and the ability to lead through complex challenges. Essentially, keeping your head 'while all about you are losing theirs and blaming it on you'.

Consider the scenario of a department head who has excelled in delivering operational success but now faces the demands of a broader, organisation-wide leadership role. Their ability to transition from tactical problem-solving to strategic decision-making is crucial, but not always evident through performance metrics alone. Conversely, a mid-level manager may demonstrate these qualities in team meetings, showing the foresight and interpersonal skills needed to inspire cross-functional collaboration. By using traditional methods like psychometric testing and situational judgment exercises, organisations can better evaluate who among their current leaders possesses the capacity for upward mobility.

In this article I explore some of the practical strategies for assessing leadership potential within existing staff and management ranks, ensuring a robust pipeline for all levels from junior managers to executive roles. Succession planning, at its best, is about bridging the present and the future—balancing immediate needs with the preparation of leaders for challenges yet unknown.

Evaluating Leadership Beyond the Obvious

Leadership potential is often more about what lies beneath the surface than what is immediately visible. The temptation to focus on past achievements or an assertive demeanour can lead organisations to overlook subtler, more essential qualities. True leadership is revealed in the capacity to reflect deeply, empathise genuinely, and adapt to shifting circumstances.

Leadership is about deliberating and acting wisely for the collective good, and leaders must be able to balance their technical expertise with moral insight, ensuring that decisions resonate not just in the boardroom but across the organisation. While people are at the heart of this process, taking an all too common people first stance and conceptualising the situation as getting the right people in the right roles is in many ways too narrow an approach

For example, "the CFO has left, we need to put a person in the CFO role". A better approach is to understand the outcomes that need achieving and then work out the most effective way to accomplish the results required. Once reframed in this way, succession planning becomes about ensuring that the people who are being canvassed to achieve the results are more than resumes. That is to say someone who has done this job before. Instead, leadership evaluation should encompass cognitive abilities, emotional intelligence, and motivational drivers, because technical skills alone in modern organisations are insufficient.

Emerging technologies, such as AI-driven analytics, are becoming increasingly popular as they seem to offer insights by identifying patterns in behaviour and decision-making. Yet, the art of evaluation cannot be wholly outsourced to machines. Situational judgment exercises, which immerse candidates in complex scenarios, remain invaluable. They offer a lens into a leader's ability to think strategically, navigate ambiguity, and act with integrity. These tools reveal the truth of a common observation: the most effective leaders are those who are as comfortable asking questions as they are providing answers.

Leadership evaluation should integrate technical skills with emotional and moral intelligence.
While AI can enhance leadership assessment, it must be complemented by human judgment.
Situational judgment exercises provide critical insights into candidates' decision-making capabilities.

Navigating Crises with Confidence

Leadership transitions are often at their most challenging during crises. Whether triggered by sudden departures, external shocks, or internal disruptions, crises test the resilience of an organisation's succession planning. History teaches us that preparation is key. It also teaches that timing is everything. Investors typically view the promotion from within an organisation favourably; however, the positive outcomes effect associated with such promotions is influenced by current performance and, in the event of a crisis, the culpability stakeholders feel resides with the organisation.

When the organisation is performing well, stakeholders tend to support the completion of a succession plan which surfaces talent and future results from within, interpreting it as a sign of stability and continuity. Conversely, in periods of poor performance, promoting from within may be perceived as an indication of managerial entrenchment, prompting a less positive, or even negative, reaction from stakeholders. In either case, ambiguity in succession planning breeds uncertainty, eroding trust and morale.

Contingency planning is the first step in crisis-proofing transitions. Identifying interim successors who can step into leadership roles at short notice is crucial. But, interim in this context does not mean stopgap. Interim appointees must possess the training and readiness to lead effectively during critical moments.

Scenario planning offers another layer of protection. By rehearsing responses to potential disruptions, organisations can identify vulnerabilities and refine their strategies. This approach fosters a mindset that views crises not as insurmountable threats but as opportunities for growth and innovation. Finally, building redundancy within leadership pipelines ensures that multiple candidates are prepared to step into critical roles, creating a safety net that supports organisational stability.

Crisis-proofing requires clear contingency plans and trained interim successors.
Scenario planning enhances preparedness and fosters adaptive thinking.
Leadership redundancy ensures organisational resilience during times of disruption.

Preparing for a Transformative Future

The landscape of leadership is undergoing a profound transformation. Rapid technological advancements, shifting workforce dynamics, and evolving societal expectations are redefining what it means to lead. Succession planning is not immune from having to adapt to these changes to remain effective.

The rise of fully remote and hybrid work environments further underscores the need for new leadership skills. Managing virtual teams requires leaders to excel in communication, build trust across distances, and sustain engagement without physical proximity. 'E-leadership' has emerged as a critical capability in organisational management, enabling leaders to foster effective organisational functioning through technology-mediated platforms. An effective e-leader excels in clear communication, facilitates meaningful social interaction, and demonstrates technological proficiency within virtual settings. Over time, these leaders build cohesive and responsible teams, establish robust accountability processes, inspire organisational change, and cultivate trust—all within the digital sphere.

At its core, e-leadership involves leveraging technology to influence attitudes, emotions, thinking, behaviours, and performance within an organisation. It is defined by six key competencies: e-communication, e-social skills, e-change skills, e-team skills, e-tech savvy, and e-trustworthiness. Together, these competencies empower leaders to bridge the challenges of remote and hybrid work environments, ensuring that virtual interactions remain as impactful and productive as traditional ones. By mastering these skills, e-leaders not only adapt to the demands of modern workspaces but also drive innovation and collaboration in increasingly digital landscapes.

Shifting attitudes toward work represents a growing challenge for succession planning. Research indicates that work is perceived as less central to younger generations' lives, partly due to longer work hours and the intrusion of mobile technology, which often leaves employees feeling perpetually 'on call'—though in Australia at least, the right to disconnect is making some inroads. This is leading to a declining willingness to take on greater responsibilities unless the reward is as clear and certain as the ask. While this only seems fair to younger generations, older generations often interpret this as mercenary or an unwillingness to put in the work. A process which complicates efforts to identify and prepare future leaders.

Compounding this, younger employees often enter the workforce with skill gaps due to inadequate preparation in education systems. Organisations can bridge these gaps through robust onboarding, training, and mentoring programs to unlock potential. Ultimately, rather than adopting fragmented approaches based on generational differences, organisations are best served by universally treating employees well—offering meaningful work, fair compensation, growth opportunities, and competent leadership. Such an approach benefits all generations, fostering a positive and productive organisational culture.

While these trends may seem disruptive, they also offer opportunities for organisations willing to embrace change. Succession planning, at its core, is about equipping leaders to navigate these complexities while preserving the organisation's mission and values.

Emerging technologies are transforming leadership training and development.
Remote work demands new skills, including virtual communication and trust-building.
Generational shifts require organisations to adapt their leadership models to align with evolving priorities.

Leadership as a Legacy

Judge each day not by the harvest you reap but by the seeds you plant.

—William A. Ward

Succession planning is about planting the seeds of future leadership, ensuring that an organisation is not only prepared for current challenges but also positioned to thrive in an unpredictable future. High-potential talent must be nurtured with care, and this requires organisations to look beyond immediate performance to the foundational, growth, and career dimensions that comprise leadership potential. These dimensions reflect the multifaceted nature of talent—stable traits, latent capabilities, and evolving skills—all of which interact with the organisational context to shape an individual's readiness for leadership roles. The most effective succession planning systems recognise this complexity and adopt strategies that align talent development with both organisational objectives and individual career trajectories.

As organisations strive to identify and cultivate their next generation of leaders, the focus must extend beyond measurable cognitive and technical skills. Growth capabilities such as adaptability, learning orientation, and openness to feedback, are equally critical, yet often remain untapped in unsupportive work environments. By providing opportunities for new assignments and diverse experiences, organisations can unlock these latent capabilities, allowing individuals to demonstrate the full spectrum of their potential. This approach not only prepares employees for future roles but also enriches the organisational culture by fostering innovation, resilience, and a commitment to continuous learning.

Ultimately, succession planning is both a strategic imperative and an ethical commitment. It ensures that leadership transitions are not only smooth but also aligned with the enduring values and mission of the organisation. By investing in talent with a long-term perspective, organisations honour the contributions of previous generations while empowering those who will lead in the future. Organisations that embrace these principles will cultivate not only a pipeline of capable leaders but also a legacy of excellence, stability, and growth.

Good night, and good luck.