As senior leaders approach retirement or exit the workforce, it’s important to ensure that knowledge, experience, and leadership capability don’t leave with them. And it’s not just about planning for retirement. Succession planning strategies must also account for sudden departures, long-term absences, and growing skills gaps. Early exits from the UK workforce contributing to an estimated £31 billion in lost economic output each year, and the loss of key individuals such Financial Controllers, Heads of Tax, or a CFO are often business-critical impacting everything from compliance, investor confidence, and business performance

‍

‍

81% of UK managers believe most technical expertise resides with long-serving employees. Without proactive planning, this critical knowledge risks disappearing. Succession planning ensures that essential roles are backed by a talent pipeline, providing continuity and resilience and enables organisations to future-proof their leadership and secure business continuity.

‍

Succession planning plays a key role in:

• Reducing operational disruption during leadership transitions

• Protecting institutional knowledge

• Maintaining stakeholder confidence

• Supporting long-term growth and transformation

‍

Succession planning also builds trust within your organisation. Employees are more likely to remain engaged when they see clear opportunities for growth and leadership development.

‍

‍

1. Identifying Key Roles
   Begin by identifying the roles within your organisation that are critical to its ongoing success. While leadership positions are an obvious focus, don’t overlook technical experts, team leads, or individuals with specialist knowledge that would be difficult to replace.
   
   Ask yourself:

• Which roles would have the most significant impact if left vacant?

• Where does unique or hard-to-replace knowledge reside?

• Are there roles currently occupied by individuals nearing retirement or likely to leave?
  
  Focus on leadership roles but also consider areas where succession planning can mitigate skills gaps or reduce reliance on a single point of expertise. You may identify a growing need for digital finance skills, ESG reporting, or expertise in AI-driven modelling.

‍

2. Spotting Internal Talent and Future Leaders
   Succession planning is about finding and nurturing replacement talent. Conduct a comprehensive review of current employees, evaluating not only performance but also potential. Use a mix of manager feedback, performance data, and employee aspirations to identify those with leadership potential. Include interim staff, employees returning after career breaks or new hires from outside your sector. They often bring a wealth of experience and diverse thinking that can enrich succession pipelines and create a stronger, more resilient leadership structure.

‍

3. Skills Mapping for the Future
   Once you’ve identified your key roles and high-potential individuals, the next step is skills mapping. This involves analysing the capabilities your business needs now and into the future and comparing them with the existing skills across your workforce. Look for:

• Gaps between future requirements and current capabilities

• Emerging competencies linked to your business strategy

• Transferable skills that could be developed further
  
  Skills mapping helps to inform both recruitment and development strategies, ensuring your talent pool aligns with business goals.

‍

4. Creating Development Pathways
   Once potential successors have been identified, provide them with opportunities to build the capabilities they’ll need to step into future roles.
   
   This could include:

• Leadership development programmes

• Cross-functional projects

• Secondments

• Executive coaching

• Shadowing and stretch assignments
  
  A formal development pathway equips employees with the right skills and signals your investment in their future. This supports retention and nurtures a strong internal pipeline for succession.

‍

5. Mentorship and Knowledge Transfer
   With most technical expertise sitting with older employees, mentorship and knowledge sharing are crucial to effective succession planning. Encourage experienced professionals to mentor those stepping into leadership roles or preparing for more senior responsibilities.
   
   Consider formal knowledge transfer programmes such as:

• Two-way mentoring (where younger employees bring fresh perspectives)

• Job shadowing

• Lunch-and-learn sessions

• Internal workshops
  
  Capturing institutional knowledge is just as important as developing new leadership skills. Without it, the organisation risks starting from scratch every time someone leaves.

‍

6. Reviewing and Updating Your Plan
   Regular reviews of your succession plans ensure your strategy remains aligned with business goals and responsive to workforce changes. Review your plan annually, or more frequently in high-turnover or high-growth environments. Look out for:

• Changes in strategic direction

• Departures or arrivals at the senior level

• New skills required for future roles
  
  Continuous evaluation allows you to refine development pathways, update key role lists, and assess whether your talent pipeline is still fit for purpose.

‍

7. Transparency and Communication
   Succession planning works best when it’s open and transparent. While not every detail needs to be shared, communicating the existence of a succession strategy demonstrates commitment to internal growth and helps reduce speculation. Be clear with high-potential employees about development opportunities, expectations, and the broader business context. This motivates while also helping to manage career expectations.

Succession planning doesn’t sit in isolation. It must be integrated with other talent management strategies to have real impact. That includes:
‍

• Recruitment: Identifying external hires with long-term growth potential

• Learning and Development: Offering targeted training aligned with succession goals

• Diversity and Inclusion: Ensuring your future leaders reflect the diversity of your workforce and customer base

• Workforce Planning: Anticipating future needs based on business growth and market changes

This alignment creates a consistent approach to attracting, developing, and retaining the right people at the right time.

‍

By identifying critical roles, assessing internal talent, building future-focused skills, and creating clear development pathways, your organisation can ensure it’s ready for whatever lies ahead.

‍

Succession planning also sends a powerful message: that your people are your priority, and that you’re investing in the future of your workforce.

‍

If you’re looking to strengthen your senior leadership team or build your internal talent pipeline, Goodman Masson can help. Our expertise spans finance, transformation, HR, and beyond, whether you need leadership today or potential for tomorrow.

Get in touch with our team to find the right talent to drive your business forward.

‍

‍