That starts with understanding where team members are in their careers, how they cross over into different roles and departments, plus their own promotion, advancement and leadership goals. Brzychcy says this is part of good organizational hygiene, but with a tight focus on “helping people plot out that career piece overlaid with your organizational growth.”

Once a candidate is identified, use small stretch projects, cross-departmental exposure and mentoring to help them gain a bigger-picture view of the organization and how it works. Give them a chance to make decisions and then see the consequences of those actions, but within the safety of a leadership sandbox, so to speak. For example, Brzychcy recommends putting someone in charge of one committee or cross-functional team, and then seeing how well they make decisions, work across departments and manage competing priorities. 

“Start by looking at any senior-level responsibilities that can be delegated, especially cross-functional assignments that give prospective leaders exposure to higher-level decision-making,” Brzychcy advises. “That’s a great way to give people experience before they move up, while also freeing up current executives to focus on broader priorities.”

What an effective succession plan should include

The succession planning odds are stacked against organizations right now. Millions of Americans reach retirement age each year, but most companies haven’t identified successors yet, and long-range planning is a crapshoot at best. Oddly, this is exactly why companies need to start earlier, while they still have time to develop people, test them in bigger roles and build relationships before a departure forces a rushed decision. Some good early steps include:   

• Identify potential successors. Look for individuals who understand the business and have an interest in taking on more responsibility.
• Broaden their exposure. Include them in areas like finance, operations, sales and marketing, and customer service.
• Give them bigger assignments. Put prospective successors in charge of a committee, cross-functional project or other assignment that requires them to make decisions and manage competing priorities.
• Bring them into customer relationships early. Make sure customers have time to get to know prospective successors well before a leadership change takes place.
• Ask them where they want to go. Talk to them about where they see themselves in three, five or 10 years. Their answers may point you to your best succession candidates.

Outside of the obvious benefits, early succession planning also helps with executive retention. When someone can map out their career trajectory over the next three, five or 10 years, it gives them more reason to stay, grow into bigger roles and take more ownership of the organization’s future. 

Early actions also help distribute leadership responsibility across more people and reduce the risk tied to any single executive. “That way, by the time a leadership change happens,” Dimond says, “the next generation of decision-makers is already embedded in the business and its customer relationships.”