Succession Planning: Preparing the Next Generation of Leaders

Preparing the next leaders is not a year-end task. It is a long-term investment that keeps the organisation running when someone leaves. How to start and measure it.

Many large companies in Thailand that have gone through a crisis where the CEO or a key executive left suddenly know that succession planning not done in advance can slow the business down for 6 to 12 months, losing deals, customers and people waiting for answers, with a poorly handled transition. Many companies only start paying attention after a crisis, when it's already too late. Good succession planning starts before a crisis and is an ongoing process, not a year-end event.

Why Succession Planning Matters in the 2026 Market

A tighter job market gives key talent more options to move. Not having a backup plan is a tangible risk.

Reasons to do it now

• Top performers get more attractive external offers, especially in AI and data leadership
• Hiring an external CEO or executive takes 6 to 12 months and is expensive
• Internal people who are ready will stay if they see a path to promotion. Those who don't, move to other companies
• Boards are starting to require a succession plan as a governance requirement
• Protection against business disruption is something investors ask about

Investment in succession starts to pay off within 18 to 24 months. Those who start now have runway to prepare before a crisis.

A Framework for Succession Planning

The structure used in Thailand and the region

5 steps that cover everything

1. Identify critical roles that would immediately affect the business if left vacant
2. Identify potential successors for each role over 0 to 12 months, 12 to 24 months and 24+ months
3. Assess each successor's gaps against the requirements
4. Create an individual development plan to close the gaps you find
5. Review quarterly and update when the business changes

Doing this for the first time takes 3 to 6 months, including talking with business leaders, assessing potential and writing development plans. Repeating it in later years takes less time, because you have a baseline.

Identifying Critical Roles

Not every role needs a successor. Choosing wisely saves resources.

Selection criteria

• Roles that make key decisions directly affecting revenue or customers
• Roles that hold unique, undocumented knowledge
• Roles where relationships with external stakeholders are important
• Roles where an external hire takes 6 months or more
• Roles where the incumbent is close to retirement or a high flight risk

Most mid-sized companies have around 10 to 20 critical roles, while large companies may have 40 to 60. Focusing on these positions first is better value than spreading efforts thin.

Assessing Successor Potential

Good assessment uses multiple sources, not the opinion of a single executive

Assessment methods

• A 9-box grid looking at current performance and future potential
• 360 feedback from peers, managers and direct reports
• Structured behavioural assessment
• Stretch assignments that test next-level skills
• External coaching assessments that give an unbiased perspective

Good potential assessment isn't about scoring. It is about seeing what this person needs investment in to be ready for a new role.

Good succession planning doesn't answer who will take over. It answers what each person needs in order to be ready to take over.

Developing Successors

Having a list of successors isn't enough. You need to invest in their development.

Development tools

1. Stretch assignments with responsibilities outside their comfort zone
2. Cross-functional rotations of 6 to 12 months in related functions
3. Executive coaching targeted at each person's specific gaps
4. Board exposure, with opportunities to present to the board on areas they own
5. External mentorship offering perspectives from leaders in other industries

A good development plan takes 18 to 36 months to prepare one person for an executive role. Expecting to prepare someone in the 3 months before their predecessor retires is not realistic.

Communicating with Successors

A question HR debates a lot is whether you should tell successors they are in the plan

Approaches used

• Tell them they have a development plan, but don't promise a specific role
• Talk about career paths broadly, not specific positions
• Let them know the company is investing in them, as motivation to stay
• Be careful not to create expectations that may not materialise
• Review annually whether their status has changed

Good communication balances building engagement with not reducing the business's flexibility to change the plan as circumstances evolve.

Connecting to the Bigger Strategy

Succession planning isn't a standalone task. It connects with several systems.

It connects with Internal Mobility, the path successors follow, and Skills Inventory, which shows who has which skills.

Developing successors connects with Reskilling Employees and Learning Culture, which are the roots of development.

For HR teams who want to get started, see leadership development courses in Plants.work Learn or talk to a mentor with executive succession experience on the Mentors page. In summary, good succession planning isn't crisis preparation. It is a long-term investment that keeps the organisation from stalling. Those who start early have the runway to make quality choices rather than decisions under pressure.