Most executives agree that succession planning is essential. Yet typically, its progress is based on gut feelings instead of facts. Starting with data is critical. Numbers tell you not only where you stand today, but also how well prepared your company is for tomorrow.

Here are the critical data points every organization should collect and analyze before building a succession strategy.

Mission-Critical Roles and Readiness

Begin by taking inventory of your mission-critical positions. How many exist in your organization? More importantly, how many of them do not have at least one ready successor identified? This data alone reveals your company’s vulnerability.

Once critical roles are identified, assess your talent pipeline in three timeframes:

• Ready now – Are there any candidates who could step into the role today?
• With targeted development, are there candidates who could be ready in 1–2 years?
• Looking ahead, can you identify individuals early in their career paths, who might be leadership candidates in 3 or more years? Now is the time to put them on a leadership development path – don’t wait.

This breakdown provides a snapshot of organizational bench strength and helps you forecast where leadership gaps may appear, so you can be prepared rather than reactive.

The Size and Health of Your Succession Pool

The succession pool is only as strong as the number of candidates within it. Tracking the size of the pool—and the turnover rates of its members—can highlight whether you are truly developing a pipeline or just relying on a handful of names.

Key measures include:

• Executive turnover rates – both voluntary and involuntary.
• Internal placement rates – the percentage of open leadership roles filled internally.
• High-potential turnover rates – losing top talent before you can promote them is a red flag; if it’s happening often, dig deeper into why.

Development and Assessment Metrics

Succession planning is about risk management and business continuity. Just as your insurance broker will estimate the impacts your company may endure during a covered event, you must estimate the impacts and ripple effects of losing a key employee and not having a capable and ready replacement to step in to the void. To estimate your risks and impacts, consider:

• Percent of potential successors who have been formally assessed. Assessments reveal strengths, gaps, and growth opportunities. (This is usually accomplished via regular performance assessments, third-party assessments and/or annual senior leader strategic planning meetings.)
• Percent of potential successors with individual development plans. Development plans provide the structure for turning potential into readiness. (Regular performance assessments should include a development plan component.)
• Average time in the succession pool before promotion or exit. If people linger too long without advancement, you risk losing them to competitors.

The Role of Outsiders

An often-overlooked data point is how much outside talent you bring in. Promoting from within strengthens culture and rewards loyalty, but “outsiders” are critical for fresh ideas and perspectives. A good rule of thumb: aim for about 20% of senior leaders to come from outside the company. These hires should be carefully vetted—both for their ability to challenge the status quo and their fit with your company’s values and competencies. (Your internal culture and high-performing leadership team should make being chosen from outside the company a coveted victory.)

Turning Numbers into Strategy

Collecting the data is only the first step. The real power comes from asking: What story do these numbers tell?

• If you have too few “ready now” candidates, you’re comfortable with the status-quo and not looking far enough into the future.
• If your high-potential turnover is high, you may not be offering enough growth opportunities—or your competitors are offering more.
• If your internal placement rate is low, you’re probably overlooking talent you already have, or your development processes may be insufficient. Either way, this puts you at the most risk.

Why It Matters

Succession planning without data is guesswork. With data, you can identify blind spots, strengthen weak points, and create a leadership pipeline that ensures business continuity. Think of this process as your insurance policy against disruption. The more accurate your data, the better able you are to create a strategy and the more confident you can be that the right people will be in the right roles—today, tomorrow, and years into the future.

NM

By Nanette Miner, Ed.D.

Keywords: Entrepreneurship, HR, Leadership

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