• Only 19% of organizations have formal succession plans¹. 

• 72% of organizations focus succession planning primarily on executive and senior management roles, neglecting broader management layers and skills critical for operational continuity². 

• The U.S. labor force participation rate is projected to drop from 62% in 2023 to approximately 58% by 2030, intensifying skill mismatches in healthcare, education, and manufacturing³. 

As we outlined in Bridging the Skills Gap: Strategic Workforce Planning and Development, most organizations have launched talent initiatives to combat skill gaps and talent shortfalls. However, succession planning remains a significant gap for four out of five organizations. 

To help organizations assess and strengthen the effectiveness of their succession planning efforts, we introduce a framework that involves strategic management across three critical areas:

INPUTS

The alignment between business strategies and structured talent management mechanisms is crucial. This alignment, along with reliable people data, are foundational items that lay the groundwork for accurate and consistent performance measures and development pathways.

ANALYSIS

Leading organizations leverage a suite of tools to identify areas of skill abundance and scarcity. While some of these tools are not new (e.g., skills clustering, 9-box grids), they are being reimagined to fit the trending skills-based approach to talent. Collectively, these tools allow HR to build the case for change when it comes to delivering the succession planning program to the organization.

OUTPUTS

The cohesive link between business strategies, talent management mechanisms, and the case for change ensures C-suite buy-in for the succession planning process and outcomes. The outcomes include succession plans for every key role, focused leadership development program content, and the groundwork for individual and group development plans.

By leveraging this framework, organizations can diagnose weaknesses, build resilience, and create a sustainable leadership pipeline for the future.

Relevant Case Studies

• Skills Assessment (HR Competency Builder) A healthcare system collaborated with ScottMadden to transition to a new HR service model. Using ScottMadden’s HR Competency Builder, 360-degree assessments were conducted, clearly identifying staff skill gaps and aligning competencies with new strategic objectives. This structured approach improved professional development outcomes and successfully positioned the organization for future leadership roles. 

• Succession Planning Framework: An electric utility collaborated with ScottMadden to implement a robust succession planning framework to support long-term strategic workforce planning. The initiative focused on identifying critical roles, defining key skills and experiences, and effectively recognizing and developing future leaders. To enhance these efforts, the client’s existing data on performance and development was optimized, enabling the integration of succession planning capabilities within their existing HCM. 

How ScottMadden Can Help

ScottMadden supports organizations in building robust succession planning strategies and programs. We leverage data-driven methods (e.g., skills assessments, validation and collaboration tools) to provide tailored talent assessments, benchmarking insights, and structured leadership development pathways. Learn more about our expertise in Human Capital Management for optimal organizational performance, and contact us for a succession planning health check to ensure your leadership pipeline is ready for the future.

1. Society for Human Resource Management, 2022
2. SHRM Benchmarking: Human Capital Report, 2022
3. Charalambous, 2024