What does a succession plan involve?

A succession plan is a strategic process that focuses on identifying and preparing individuals to fill key leadership positions within an organization. This ensures continuity in leadership and helps to mitigate the risks associated with sudden changes in management or unforeseen departures. By preparing candidates, organizations can ensure that they have qualified individuals ready to step into critical roles, maintaining stability and the ongoing success of the organization.

In contrast, documenting annual sales results, creating a financial budget, and developing marketing strategies all pertain to different aspects of business operations, such as sales performance, financial planning, and market positioning. While these functions are essential for the overall health of an organization, they do not directly address the proactive approach of preparing future leaders, which is the central tenet of a succession plan.