Succession planning
Succession planning prepares for future vacancies in key roles by identifying required capabilities, potential successors and development or recruitment actions. It addresses planned transitions and unexpected loss of people, supporting continuity and reducing dependence on individuals. Plans should reflect future strategic needs rather than simply reproduce the current leadership profile. Fair processes, periodic review and readiness evidence are important.
Worked example
A board expects its chief executive to retire in two years. It reviews future leadership needs, develops possible internal candidates and considers an external search, while maintaining an interim emergency arrangement.
Common mistake
Do not treat succession as a private promise to one favoured candidate or assume naming a replacement is sufficient without assessing readiness and continuity needs.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | SBL | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |