Why Succession Planning and Understanding Team Capabilities Matter

Knowing the purpose behind producing a capabilities report is essential for including the right information. When it comes to succession planning, understanding the skills and strengths within your team is key to identifying any gaps that need addressing.

Succession planning is critical for business continuity. A notable example comes from a global company in 2004 and 2005, which faced the sudden loss of two CEOs in quick succession. Thanks to a well-prepared succession plan, the board was able to respond within six hours, allowing the company’s revenues to grow by 27% between 2004 and 2007 (Saporito & Winum, 2013). This shows how having a solid plan in place helps an organisation operate smoothly without major disruption.

Succession planning isn’t just about skills. It also involves passing on core values such as social responsibility, which encompasses ethical business practices and a commitment to social, cultural, economic, and environmental issues (DeWitt & Izzo, 2015).

One common challenge is the lack of full commitment to succession planning. Many organisations treat it superficially, often due to short-term focus or reluctance to have honest discussions about leadership performance. This leads to insufficient investment in developing future leaders (Oswin, 2015). However, as the example above illustrates, dedicating time and resources to succession planning is essential for long-term stability.

In practical terms, understanding team capabilities means identifying who might step into leadership roles and what skills they need to develop. Creating a skills matrix can help map out the strengths and areas for growth across your team. While not everyone needs to master every skill, encouraging skill sharing can broaden abilities—for example, designers learning basic video editing or photographers improving image editing techniques.

Clear career progression paths and development plans motivate employees and help retain top talent. Regular one-on-one meetings to track progress, along with quarterly performance reviews and 360-degree feedback, keep motivation high and support continuous improvement. Employees value knowing how they are performing and where they can grow.

By investing in succession planning and understanding team capabilities, organisations can build resilient teams ready to meet future challenges and continue delivering success.