Succession Plan: How to Create One in 6 Steps (Template)

9 min read ยท 2026-11-15

A succession plan is a written plan that names who can step into each critical role, how ready they are, and what you will do to get them ready before the role opens. You build one in 6 steps: secure a sponsor, pick the critical roles and name emergency cover, define what success looks like in each role, assess possible successors, develop them, then review the plan twice a year.

Many companies already have some version of this in a manager's head. That is the problem. A plan that lives in one head has no owner, no dates and no backup. The roadmap below turns it into a document with owners, dates and milestones that you can take to your leadership team.

The roadmap at a glance

Goal: Have emergency cover for every critical role within 2 months, then a named, assessed and developing successor for each one within 12 months. Duration: 12 months, then reviewed every 6 months

  1. Secure a sponsor and set the scope (Month 1)

    Agree on why you are doing this and who signs it off.

    • Name an executive sponsor and an owner, often the HR lead or the COO.
    • Decide the scope: leadership only, or leadership plus critical specialist roles.
    • Write the business risk in one sentence, for example "two of our five department heads could retire within three years."
    • Agree on the confidentiality rules: who sees successor names and who doesn't.

    Milestone: Scope and owner signed off by the sponsor.

  2. Pick the critical roles and name emergency cover (Month 2)

    List the roles where an empty seat would hurt the business most, then close the most urgent risk first.

    • Score each role on impact, how hard it would be to replace, and how likely it is to open soon.
    • Flag any role held by one person with knowledge nobody else has.
    • Keep the first list short enough to review properly in one meeting. You can add roles at the next review.
    • Name an interim cover for every critical role, even if that person isn't the long-term successor.

    Milestone: Ranked list of critical roles approved by the leadership team, each with a named interim cover.

  3. Define success profiles (Months 2-3)

    Write down what someone needs in each role to succeed in it.

    • Interview the current holder and their manager.
    • List 4 to 6 must-have skills, the key relationships and any required certifications.
    • Document the knowledge that lives only in the current holder's head: key contacts, recurring decisions, open projects and where access details are kept.

    Milestone: One-page success profile and handover notes for every critical role.

  4. Assess and name successors (Months 3-4)

    Find the people who could step in and rate how ready they are.

    • Place candidates on a nine-box grid (performance against potential).
    • Calibrate the ratings in a session with peer managers from the same department.
    • Give each successor a readiness level: ready now, ready in 1 to 2 years, or ready in 3 years or more.
    • Mark any role with no internal successor.

    Milestone: At least one named successor, or a clear external plan, for each critical role.

  5. Develop successors (Months 5-10)

    Close the gap between today's skills and the success profile.

    • Write an individual development plan for every successor, with 2 or 3 actions and dates.
    • Combine mentoring, formal training and stretch assignments.
    • Give the interim covers named in Phase 2 a short practice run, such as covering one cycle of the role's recurring work.
    • Update the handover notes as projects and contacts change.

    Milestone: Every successor has an active development plan.

  6. Review, communicate and refresh (Months 11-12)

    Check progress and lock in the review rhythm.

    • Re-rate readiness for every successor.
    • Confirm or replace each interim cover.
    • Present the results to the sponsor or the board.
    • Set the next two review dates, six months apart.

    Milestone: First full review completed and the next review date in the calendar.

What is a succession plan, and how does it differ from a replacement plan?

A replacement plan answers one question: who covers this job tomorrow if the holder leaves? It works like a list of backups. A succession plan goes further and grows people over time, so the business has a choice of successors instead of a single name.

You need both, and they fit in the same document. The replacement part is the emergency cover you name in Phase 2. The succession part is the readiness rating and development work in Phases 4 and 5. Skipping the emergency side leaves a serious gap, and many organizations still have no contingency plan for their top job.

How to create a succession plan in 6 steps

The six phases above are the six steps. A few points make the difference between a plan that works and a file nobody opens again.

First, start with the roles, not the people. If you start from "who are our high potentials", you end up covering popular managers and missing the payroll specialist nobody can replace. Score the roles first, then look for successors.

Second, cover the biggest risk early. A sudden departure can happen in month 3 as easily as in month 11. That is why the roadmap names interim covers in month 2, long before the development work starts.

Third, give every action an owner and a date. "Develop Sarah's leadership skills" is a wish. "Sarah leads the Q2 vendor review, mentored by the CFO, by June 30" is a plan. Mix mentoring, formal learning and stretch assignments, so each successor gets advice, knowledge and real experience in the role at the same time.

Succession plan template you can fill in

Use one block per critical role. Copy it into a document or a slide, one role per page.

  • Role: title, department, reports to.
  • Current holder: name, expected exit window if known (for example, retirement in 2 to 3 years).
  • Risk level: high, medium or low, with one line explaining why.
  • Emergency cover: who steps in for the first 90 days if the role opens tomorrow.
  • Success profile: 4 to 6 must-have skills and knowledge.
  • Successor 1: name, current role, nine-box position, readiness (ready now, 1 to 2 years, 3 years or more).
  • Successor 2: same fields, if you have one.
  • Development actions: 2 or 3 actions, each with an owner and a due date.
  • Knowledge handover: where the key documents, contacts and recurring decisions are stored.
  • Next review date.

Example: a succession plan for a 40-person company

Here is what the template looks like for a 40-person company. The critical roles might be the finance lead, the head of sales and the only person who runs the production system. In month 2, each role gets a named interim cover, and the systems role gets a written runbook by month 3.

The finance lead has a successor who could be ready in 1 to 2 years, so she takes over month-end close twice this year with the finance lead reviewing. The head of sales has no internal successor, so the plan says so and lists an external search as the backup.

Who owns the plan and who approves it

Ownership depends on the size of the company. In a small business, the founder or CEO can own the plan, and a trusted advisor or board member can give it a second look. In a mid-size company, HR can run the process while department heads assess and develop their people and the executive team approves the final list. If you have a board, CEO succession belongs on its agenda.

Whatever the size, keep three roles separate. The owner runs the calendar and the template. The assessors rate successors in a calibration session. The approver signs off on the critical roles and the names. When one person does all three, bias goes unchecked.

Planned exits versus sudden departures

A planned exit, such as a retirement or an internal move, gives you time. Run a structured handover of 3 to 6 months: the successor shadows first, then leads with the holder watching, then leads alone while the holder is still available for questions.

A sudden departure through resignation, illness or death gives you no time. This is why every critical role gets an interim cover in Phase 2 and written handover notes in Phase 3. The interim cover doesn't have to be the permanent successor. Their job is to keep decisions moving for the first weeks while you confirm the long-term choice.

Internal or external: when to hire from outside

Promote from within when a successor is ready now or in 1 to 2 years and fits the success profile. Internal moves keep knowledge in the business and show your other people that growth is possible. They also give strong performers a visible next step, which matters if you want to keep them.

Hire from outside when the assessment finds no internal candidate, when the role needs skills the company has never had, or when the strategy calls for a deliberate change of direction. Write that decision into the plan instead of leaving the box empty, so leadership sees the gap and can budget for the search in advance.

How to present the succession plan to leadership

Leadership wants to know three things: where the risk is, what you are doing about it, and when it will be fixed. Open with a one-page view of the critical roles, colored by readiness, with the interim cover for each. Follow with the 12-month roadmap and its milestones, then one slide per high-risk role using the template above.

Keep successor names on a restricted slide, or present them only to the approvers. Close with the review dates and what you need from the room, such as time from senior mentors or budget for training. Many organizations say their succession planning is not very effective. A plan with visible milestones is far easier to hold to account.

Common mistakes to avoid

  • Keeping the plan informal, in one manager's head, when it should be written down with owners and dates.
  • Writing the plan once and never opening it again. Put two reviews a year in the calendar before the first meeting ends.
  • Covering only the top job, when specialist roles with single-person knowledge carry the same risk and need the same treatment.
  • Rating successors alone. Calibrate nine-box ratings with peer managers from the same department, so one manager's bias doesn't decide.
  • Naming successors without developing them. Every name needs at least two dated development actions.
  • Leaving emergency cover for later. Name an interim person for every critical role in the first two months, even when the long-term successor is years away.

Frequently asked questions

What should a succession plan include?

It should list the critical roles, an emergency cover for each, a success profile, named successors with a readiness level, development actions with dates and the next review date. The template above covers all of these fields in one block per role.

How long does it take to create a succession plan?

The roadmap in this guide runs over 12 months, from choosing the critical roles to the first full review. Emergency covers are named in month 2, so the most urgent risk shrinks long before the full plan is finished.

How often should a succession plan be reviewed?

Twice a year suits most teams. Review sooner when a critical role holder announces an exit, when a successor or an interim cover leaves, or when the company reorganizes.

Should employees know they are in a succession plan?

Many companies tell successors they are being developed for bigger roles, without promising them a specific job. That keeps them engaged and avoids a broken promise if plans change. The full list of names stays with the approvers.

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