Every organisation faces a pivotal question: who will lead next?

But succession planning is too often treated as a reactive measure rather than a proactive strategy. One of the biggest challenges is accurately identifying the right internal talent for critical roles. Additionally:

• Constantly changing markets make it hard to pin down future leadership needs
• Biases in the the selection process can lead to overlooked talent
• A lack of targeted development means talent pipelines aren’t nurtured effectively
• Successors are often selected based on tenure, not capability

If your business struggles with any of this, you’re risking leadership gaps that weaken performance and the ability to compete. Predicting future leadership roles requires strategic foresight, structured leadership development and an inclusive approach to talent management.

This is where Hanover Search excels. As a trusted partner in talent acquisition and effective succession planning, we help businesses stay ahead in leadership, crafting bespoke succession planning frameworks that ensure you have the best people ready to step up at the right time.

Today, we’re sharing the succession planning best practices we use to ensure continuity, stability and sustainable success.

The high cost of poor succession planning

Before we start – why do you need a better approach?

Disruption in business operations

When a leader suddenly exits without a successor in place:

• Decision-making stalls
• Teams lack strategic direction
• Key projects and initiatives lose momentum

Vacancies at the top create instability that ripples throughout the organisation, affecting everything from revenue streams to stakeholder confidence.

Lower employee engagement

Employees value career progression. When they see no clear pathways to future roles, they may feel overlooked, and motivation will plummet as a result. In Cognexo’s 2024 report:

• 64% of employees feel disengaged
• 45% feel undervalued
• 31% are concerned by limited growth opportunities

Uncertainty about who’s steering the ship will also erode team confidence. Employees may check-out, and productivity will dip as attrition rates climb.

Difficulting attracting (and retaining) top talent

High-potential employees are drawn to organisations who offer progression. Without a roadmap for career advancement, attracting sought-after candidates becomes gruelling, leaving organisations struggling to fill key positions.

Not only that, if succession planning efforts are lacking, top talent in the company may seek opportunities elsewhere, with 85% of UK employees citing a lack of career growth as the top reason for leaving.

Reputational damage

A weak succession planning framework tarnishes an organisation’s reputation, not only in the talent market but also among investors, partners and clients.

A well-prepared organisation signals stability, while leadership turbulence triggers doubts about long-term viability.

Building a robust succession planning process

Effective leadership transitions don’t happen by chance – they require a structured approach. Following succession planning best practices means identifying high-potential talent, investing in comprehensive development and continuously assessing your leadership pipeline.

1. Define key leadership roles

The first of our succession planning best practices is identifying critical positions that drive strategy, innovation and operational success. These include C-suite executives, department heads and pivotal specialists whose expertise is irreplaceable.

Each role should be assessed for its strategic impact on the organisation. This will make it easier to map out potential leadership gaps and anticipate future roles.

2. Identify high-potential candidates

Spotting the right people for future roles isn’t just about looking at who performs well today. It’s about assessing potential. Future leaders should demonstrate:

• Strategic vision and decision-making ability
• Strong communication and influence
• Adaptability to market shifts
• The ability to inspire and develop teams

Assessing these qualities early ensures organisations nurture the right people for critical positions. Here are some tips to help you:

• Go beyond job titles and tenure. Longevity in a role doesn’t always mean leadership readiness; the fact that only 27% of employees rate their managers as highly effective proves that. Instead, evaluate individuals based on leadership potential and strategic thinking, not their status or the number of years stamped in their company passport.
• Assess internal talent based on past performance, cultural fit and growth mindset. You should put the future of your organisation in the hands of those who align with its values, embrace challenges and continuously seek to improve.
• Consider external candidates. Fresh leadership can inject new ideas, challenge outdated thinking and accelerate transformation. Better to bring in the right leader than risk the company’s future on someone who isn’t ready.

3. Implement comprehensive development strategies

The most effective succession planning efforts focus on practical experience, continuous learning and opportunities that challenge promising employees.

Mentorship and coaching programmes

Mentorship and coaching provide future leaders with real-world insights, emotional support and personalised career advice from experienced executives.

Coaching programmes can be formal or informal, depending on organisational needs. Either way, the goal remains the same: sharpening leadership instincts and preparing individuals for critical roles through hands-on learning.

Leadership development workshops

When it comes to leadership, technical expertise is a bonus – but not the key to the kingdom. Influence, vision, communication and adaptability are far more important.

These skills can be honed in targeted leadership development workshops, which cover strategic thinking, team management, self-awareness, emotional intelligence and more. Crucially, these sessions must be tailored to all leadership levels, ensuring a strong pipeline of high-performing leaders who drive success at every level, from first-line management to the boardroom.

Rotational assignments and project opportunities

Nothing builds leadership versatility like first-hand exposure to different parts of the business. Rotational assignments give talent the chance to work across departments, broadening their perspective and developing cross-functional expertise.

Whether through structured rotation programmes or high-stakes project opportunities, these experiences ensure leaders can adapt to future challenges and drive success across multiple areas.

Educational and training programmes

A strong leadership pipeline isn’t built on experience alone; continuous learning is key.
Formal education (executive MBAs, finance certifications, industry qualifications) strengthens decision-making and business acumen. On-demand learning platforms, industry webinars and virtual courses allow leaders to upskill at their own pace – especially in critical soft skills.

Organisations can also leverage succession planning software to track progress and identify skill gaps, ensuring future leaders are always learning and growing.

By prioritising education and continuous upskilling, organisations build a dynamic leadership pipeline – one that keeps pace with change, strengthens internal talent and ensures future leaders are primed for success.

4. Regularly assessing effectiveness

Succession planning efforts can’t be static. Just as you wouldn’t make investment decisions based on outdated market data, so shouldn’t you let last year’s succession plan determine your leadership needs today. Your strategy must be continuously assessed and adjusted in order to remain effective.

• Use leadership readiness metrics. Track key indicators like skill gaps, performance data and promotion readiness to ensure succession plans stay aligned with your needs.
• Gather feedback from executives and employees. Regularly collect input from staff to refine development programmes and ensure succession planning efforts are relevant.
• Reassess leadership pipelines frequently. Conduct regular reviews to ensure your internal talent pool is strong, diverse and aligned with future leadership roles.
• Use succession planning software. Data-driven insights can help track leadership progress, identify gaps and refine development strategies in real time.
• Make succession planning an ongoing priority. Integrate it into broader business strategy discussions rather than treating it as a one-off HR exercise.

Best practices for identifying high-potential leaders

Succession planning best practices start with becoming finely attuned to recognising untapped potential in those who inspire others, adapt to change, think strategically and demonstrate resilience and innovation.

But it’s important to remember that potential is a state, not a trait.

It depends on having the right raw ingredients, like capability and mindset, but also an individual’s appetite for growth. Both can shift over time, making regular assessment critical. Someone who isn’t ready today might be your strongest leader tomorrow – if they have the right development and opportunities to rise to the challenge.

Look beyond job titles

A common mistake in succession planning efforts is assuming that the next leader is already sitting in a leadership role. But past promotions don’t have anything to do with leadership potential. Instead of looking at current titles, ask:

• Who is already influencing others, even without a leadership role?
• Who steps up in a crisis, takes initiative and thinks beyond their remit?
• Who challenges the status quo and brings new ideas to the table?

Leadership is more about mindset, adaptability and strategic vision than hierarchy. The best organisations cultivate a talent pipeline by identifying those who already demonstrate these qualities, whether they have a leadership title or not.

Evaluate the qualities that matter in future leaders

The most successful leaders have a mix of strategic foresight, resilience and the ability to inspire others. These are the traits to look for:

• Strategic thinking and vision: Great leaders react to change and anticipate it. They spot industry trends before they happen, align their teams with long-term business goals and understand how their decisions fit into the bigger picture.
• Strong decision-making skills: Leadership means making tough calls under pressure. High-potential leaders demonstrate sound judgement, confidence in their choices and the ability to weigh risks while acting decisively.
• Effective communication and influence: Leadership is also about bringing people along with you. Future leaders must articulate a clear vision, influence stakeholders and communicate in a way that inspires action across the business.
• Ability to build and motivate teams: The best leaders elevate the people around them. They know how to bring out the best in their teams, foster collaboration and create an environment where employees thrive.
• Adaptability and resilience: The modern business landscape is unpredictable. Future leaders must be able to navigate change – pivoting when necessary, maintaining composure and keeping teams focused is crucial to quick recovery.
• Growth mindset: Underpinning all of these qualities is the willingness to learn, adapt and evolve. Leaders with a growth mindset embrace challenges, experiment with new ideas and learn from setbacks. By modelling this behaviour, they encourage innovation in others, inspire continuous learning and build inclusive, high-performing cultures where talent can reach their full potential.

Utilise a variety of assessment tools to get a full picture

Even if you see all of the above qualities in someone, identifying potential leaders shouldn’t be based on gut instinct. Without a structured, data-driven approach, you risk letting unconscious biases seep into the selection process – which 96% of recruiters agree is a problem.

To avoid decisions getting swayed by familiarity or outdated notions of what leadership should look like, you must implement a variety of assessment tools to keep your decisions anchored in proof. Here are our top three suggestions:

• Performance reviews and 360-degree feedback: Performance reviews alone only tell part of the story. But when combined with a 360-degree feedback system, where input is gathered from employees and managers, they create a well-rounded view of individual strengths, areas for improvement and leadership potential from different perspectives.
• Psychometric assessments: Personality and cognitive ability tests provide insights into how someone thinks and operates under pressure. These assessments measure decision-making skills, emotional intelligence and leadership tendencies, helping you spot natural leaders who might not yet have formal experience.
• Leadership simulations: Theoretical leadership ability and real-world leadership ability are two different things. Simulations, like role-playing scenarios or crisis management exercises, put candidates in realistic leadership situations to see how they react. These exercises can reveal strengths, gaps and unexpected high-potential individuals who excel when put to the test.

Developing future leaders

Developing future leaders is a lot like tending a garden. You can’t just plant the seeds and hope for the best. Without regular watering, sunlight and the right conditions, nothing thrives.

The same goes for leadership pipelines. A culture driven by succession planning best practices is one that embeds learning, growth and development into the fabric of everyday operations.

• Create a culture of continuous learning: Leadership is constant evolution. Organisations must foster an environment where employees are encouraged to upskill, challenge themselves and embrace new learning opportunities. Not only does a strong learning culture create a workforce that’s adaptable, informed and always growing, it also doubles employee retention rates, with 94% of employees staying longer at companies that invest in their career growth.
• Provide challenging assignments: Leaders develop by tackling real business challenges. Stretch assignments, high-impact projects and exposure to cross-functional teams push high-potential employees to refine their decision-making skills, develop resilience and think strategically.
• Offer mentorship programmes: Mentorship is one of the most powerful ways to shape future leaders. When emerging talent is paired with experienced executives, they gain more than career advice – they get real-world insights, support through challenges and a clearer path forward. A strong mentoring culture centres on sharing experiences and building confident leaders who can carry the business forward.
• Invest in tailored leadership development: A one-size-fits-all approach to leadership training doesn’t work. Succession planning best practices involve tailored leadership development programmes that address specific skill gaps, align with business strategy and equip future leaders with the tools they need.

But providing these opportunities is just half of the equation. Developing future leaders is also about understanding each individual’s readiness to step up.

Not everyone is prepared for leadership at the same pace, and that’s why ongoing assessment is crucial. By regularly evaluating skills, experience and mindset, organisations can pinpoint where leaders are today, where they need to be and how to close the gap in a realistic timeframe.

This ensures development efforts are targeted and effective, accelerating growth without overwhelming emerging leaders or setting them up to fail.

Integrating DE&I into succession planning

When leadership development is open to everyone – not just a select few – it fuels fresh thinking and builds stronger teams. True innovation happens when decision-making isn’t confined to a narrow group of voices but shaped by diverse experiences, backgrounds and ways of thinking.

It’s not about fairness, it’s about inclusion. It’s about recognising that the best solutions come from a mix of perspectives, not an echo chamber. Businesses that invest in a broader, more inclusive leadership pipeline create teams that challenge assumptions, spot risks others might miss and drive smarter, more balanced decisions.

Strategies for advancing diverse talent

• Provide equal access to leadership training. Development opportunities shouldn’t be reserved for those who fit the “traditional” leadership mould. Structured, transparent pathways ensure everyone – regardless of background – gets the support needed to go further.
• Address hidden biases in promotion decisions. Biases aren’t always obvious, but they carry a lot of weight. Organisations must critically examine how promotions are decided, challenge outdated criteria and focus on ability and impact rather than familiarity or comfort.
• Create sponsorship programmes that go beyond mentorship. While mentorship offers guidance, sponsorship actively opens doors. Senior leaders must advocate for employees from underrepresented groups, ensuring they’re considered for stretch assignments, key projects and leadership roles.
• Embed accountability into leadership development. Real change doesn’t happen without measurable goals. Companies must track who gets leadership training, who moves up and who gets overlooked, making diversity in leadership a business priority, not just an HR initiative.

Benefits of diverse leadership teams

Many think “diversity” is just a buzzword, or a means of getting a pat on the back, when in reality, diverse leadership teams are catalysts for better business performance.

• Diverse management teams drive 19% higher revenues due to innovation
• Inclusive teams are 35% more productive and make better decisions 87% of the time
• Employees who feel safe to be their authentic selves are 2.4 times less likely to quit
• Companies who champion ethnic diversity are 39% more likely to outperform those who don’t

At Hanover, we understand the transformative power of diversity. Our expertise in driving DE&I efforts in recruitment and leadership development ensures that organisations don’t just meet diversity targets but harness the full potential of varied perspectives to achieve excellence.

Proactive planning: The key to future-proof leadership

If you leave this insight knowing one thing, let it be this: great leadership doesn’t happen by accident. To secure your organisation’s future, you need a proactive, structured approach to succession planning. Here’s what matters most:

• Succession planning must be proactive, not reactive
• Identifying future leaders demands you to look beyond job titles and tenure
• Mentorship, leadership training and hands-on experience are non-negotiable
• Diversity strengthens leadership – don’t ignore it
• Succession planning is an ongoing process, not a one-hit wonder

At Hanover, we don’t just fill leadership gaps, we build future-ready leadership pipelines. From executive search and leadership development to DE&I strategies that drive real impact, we help businesses secure top talent, nurture future leaders and create leadership teams that are built to last. Contact us today to see how we can support your business.