Leadership succession planning is a process to create and manage the organization’s talent pipeline. A key (and often overlooked) part of leadership is developing the next generation of leaders. This can address the looming retirement of key people or support rapid organizational growth. Succession planning includes:
- Identifying the key positions in an organization, as well as the competencies and experience required for these positions.
- Cultivating a pipeline of high-potential talent from which to select new leadership.
- Conducting a talent inventory to understand the competencies and skills currently available within the organization.
This is a crucial process in every organization, but it is becoming increasing important as 72 million baby-boomer aged workers begin retiring over the next 10 years (U.S Census Bureau, 2009). In addition, estimates show the potential shortfall of replacement workers may be as high as 30 million people.