A vacant position is a risk, not an event
Every key position could fall vacant suddenly: the holder moves on, falls ill, retires or is pulled into other duties. That possibility cannot be removed, but its impact can be reduced. A company that already has a picture of who is ready, who is nearly ready, and who must be found externally can act calmly when it happens.
A company without that picture is often forced to appoint an acting leader with no end date, choose whoever happens to be available, or start a search from zero while running operations that have lost their leader.
Three questions for every key position
- Who could fill this position if it were vacant tomorrow? Answer with a name, not with "there may be someone".
- Who could fill it within one to two years if given development? The names that appear here are candidates worth investing in.
- What would be lost if the current holder left, and how much of that knowledge exists only in their head?
If the first question cannot be answered for many positions, that is not a failure of individuals. It is information about how vulnerable the organisation is, and a basis for deciding where to invest first.
A simple readiness map
You do not need a complex system to start. One table is enough: key positions in the rows, successor readiness in the columns. Fill it in using three simple levels.
- Ready now. Could take over with reasonable support.
- Ready in one to two years. Needs specific experience or exposure.
- None yet. Must be found, developed from further away, or considered from outside.
Review this table at least once a year with the leadership team. What matters is not how tidy the table is, but the honest conversation that takes place while filling it in.
Internal and external candidates are not mutually exclusive
Succession is often pictured as a choice between insiders and outsiders. In practice the two complement each other. Internal candidates bring an understanding of the culture and established relationships, but may not yet have been tested at a larger scale. External candidates bring experience and a fresh perspective, but need time to understand the organisation.
An external benchmark is useful even when you lean towards an internal candidate. By seeing who is in the market, the board and the leadership can decide with confidence that the choice really is the best, and not merely the closest.
A company that never asks who the successor is still makes a decision, only without realising it.
Development that makes successors truly ready
- Stretch assignments, such as leading a cross-functional project or taking charge of a unit that is in difficulty.
- Exposure to the board and key stakeholders, so that candidates are known before they are needed.
- Honest, regular feedback from superiors and peers.
- Planned rotation, not chance, so that candidates see different parts of the business.
Confidentiality and honesty towards candidates
Discussing successors means discussing people. Keep the list known only to those who need to know. At the same time, do not promise a position to any candidate. Tell them they are being considered and developed, but that the final outcome depends on business needs and proven readiness.
Involving the board and shareholders
Succession for the top position usually involves the board, not only management. The board needs to understand the profile the company will need over the next five years, which is not necessarily the same as the profile of the current holder. This conversation should take place when things are calm, not under pressure.
Some questions deserve regular discussion by the board: whether there is an emergency plan if the top leader were suddenly unable to serve, who would act as interim, and what authority that person would have. An emergency plan need not be long, but it must be clear and known to those concerned.
Family companies and concentrated ownership
In companies owned by a family or a handful of shareholders, succession has additional layers: personal relationships, expectations across generations, and the question of whether the next leader comes from the family or is an outside professional. There is no single right answer. What helps is clear criteria. If family members are considered, measure them with the same scorecard as other candidates, and if an outside professional is chosen, make sure their authority is real and not just a job title.
Risks that often go unseen
- One person holds a key relationship with a customer or supplier, and no one else is known to them.
- Technical knowledge sits with one person and has never been documented.
- The best potential successor does not know they are being considered, and accepts an offer from elsewhere.
- A strong leader chooses a successor who resembles them, not the one the company needs in future.
Risks like these only become visible when they are questioned deliberately. That is why a good succession review always includes one simple question: what happens if this person leaves next month?
A note for putting this into practice
Choose the five positions that most affect the company's continuity. For each one, write the name of the successor who is ready now, the one who is ready within two years, and write "none yet" if there is none. Take the result to the next leadership meeting. A position marked "none yet" is where you need to begin, whether through development or through mapping the market early.
