A step-by-step guide to succession planning in tech

What is succession planning?

Succession planning is the process of identifying different positions within the organization and assigning qualified employees to those positions. This strategy focuses on paving the way for capable employees within the company, equipped with the required knowledge, skills, and competencies, to assume roles that have become vacant. Usually, the Leadership and Development (L&D) team leads this process by determining which jobs are crucial, what skills are needed, and where there might be skill gaps. Then, they create plans to train the next group of leaders. In essence, the succession plan is about setting a clear future vision for a company.

Importance of succession planning in tech

Succession planning is essential for maintaining the stability of an organization. Without a proper succession plan, the organization exposes itself to potential challenges such as: 

Choosing the wrong successor: If a successor lacks necessary qualities like motivation, commitment, or the right skills and training, their performance can negatively impact the team and its overall productivity. For example, a manager is not necessarily a leader and vice versa so it is important to clearly define the roles of a manager and leader.

Time required for training new hires: Training a new successor takes time and resources which the L&D team may be short on leading to reduced efficiency and output in the team or the department the new hires are joining. Effective time management strategies such as a Time Management Matrix can help with this case.

Workplace disruptions: Changes in key positions can disrupt established processes and workflows. New approaches brought in by new leaders can cause temporary confusion and delays, affecting team performance until things settle down.

Benefits of succession planning in tech

Planning a succession plan for your tech team can yield several benefits. Some of them include the following:

• Risk reduction 

• Lower hiring costs

• Improved employee engagement 

Risk reduction 

By having a well-thought-out succession plan, an organization can significantly mitigate the risks associated with unexpected departures of key personnel. This is particularly crucial in the tech industry, where the loss of critical staff can lead to disruptions in project timelines, loss of institutional knowledge, and potential setbacks in innovation. It prepares organizations for inevitable changes like leadership retirement, helping them respond quickly and lower risks.

Lower hiring costs 

Without succession planning, finding external candidates for important roles can be expensive and slow. When you have an effective succession plan in place, you’re essentially preparing internal team members to step into more senior roles over time. This strategy significantly reduces the costs associated with external hiring processes, such as advertising the position and spending time and resources on interviewing numerous candidates. Additionally, internal candidates are already familiar with the company culture and processes, which reduces the time and resources needed for onboarding and training.

Improved employee engagement

Showing employees they have growth opportunities within the company can motivate and retain them. Succession planning makes internal opportunities more visible and attainable, ensuring that leadership roles are filled based on merit rather than personal connections or resume content. This approach promotes fair opportunity for all employees.

Succession planning process

Planning a succession can be a tedious process with multiple different phases catering to the unique needs of teams. Generally, there are four major steps for successful succession planning process, these include:

1. Define objectives

2. Identify key positions 

3. Identify potential candidates

4. Develop and implement succession plan

Define objectives

In preparing for leadership changes in tech roles, the objectives of the succession planning should align with the organization’s mission and address the unique requirements of the tech industry. The L&D team should focus on developing internal tech talent and promoting diversity within the tech teams to ensure that future leaders are ready to handle the industry’s technological advancements.

Identify key positions

The next step in succession planning for a tech team is to identify key positions where succession changes will be implemented. This involves a thorough analysis of roles that are critical for the team’s operations and future growth, including senior technical roles, project management, and leadership positions. Once these key roles are identified, the focus shifts to understanding the specific skills, experiences, and competencies required for each role. 

Identify potential candidates

Once the roles are finalized, it is important to conduct a thorough assessment of potential candidates for the roles. The L&D team carefully examines the internal talent to identify suitable candidates prepared to fill key positions. This examination includes evaluating the strengths and weaknesses of your leaders, particularly in areas like leadership, communication, problem-solving, and adaptability. It’s important to determine whether these leaders are fully prepared for their roles or if they require additional training.

Develop and implement succession plan

To successfully manage succession, the L&D team should integrate training and development into the succession planning process. It is essential to tailor individual learning plans for employees, aligning them with the requirements of their current and future roles. Sometimes it would be essential to develop a leadership development program to properly train the candidates for the new role. This approach fosters both personal and professional growth. 

Final word

A succession plan is important to ensure that the organization has the right people with the necessary skills for the future. Through succession planning, organizations can proactively address the risk of a shortage of skilled employees and implement concrete measures to ensure they possess the talent needed to outperform competitors.