Succession Planning – tips for nurturing future leaders

Uncertainty breeds instability. That is as true when it comes to the leadership of your organisation as it is with broader economic or regulatory challenges. Ensuring that the handover of key roles happens quickly and smoothly and that the right people are promoted to leadership positions, is a key business function.

Succession planning shouldn’t be something that lies dormant until the moment a departure or retirement is announced and then kicks into gear. Succession planning should involve the ongoing identification and development of leadership talent in your organisation (and sometimes outside it), so that the right people are ready to fill roles as soon as they become available.

Leaving succession planning to chance should not be an option. Getting it wrong can lead to instability and disruption and can put the long-term future of your business at risk. Here are five steps to successful succession planning.

The UHY Forum 2025

Create a succession strategy

Succession planning is a strategy, not an activity. It is important to formalise the processes involved with clear timelines, measurable criteria and robust governance. If the size of your company warrants it, consider setting up a steering group or committee to oversee leadership talent development and role transitions.

Identify and develop internal talent

This is perhaps the most important part of your succession planning strategy. Invest in leadership development programmes to identify and nurture future managing partners. Shadowing, mentoring and rotational leadership roles can prepare candidates for top jobs.

In addition, create a culture of leadership readiness. Encourage entrepreneurial thinking and ownership among younger partners. Continually ask what the leadership skills required to fulfil the future strategic direction of the firm will be. Put training in place to develop those skills in promising candidates.

One of our most innovative pathways for developing leadership potential at UHY is our flagship UHY Forum programme. This highly successful annual event, now in its 23rd year, brings together potential leaders from around the network to meet, bond and grow under the guidance of globally respected business school mentors. UHY Forum alumni have gone on to fill senior positions in UHY member firms and have even become UHY International Board members and chairpersons.

We have also recently unveiled our new UHY Mastermind programme, an online initiative aimed at providing structured, ongoing peer group development for member firms’ leaders of the future.

Balance tradition and innovation

Leadership candidates should honour the legacy of the firm and have a deep understanding of the strategy and approach that have brought it this far. But succession should also be an opportunity to explore new ways of thinking and working. Your talent development programmes should identify candidates with a firm grasp of business fundamentals allied to an unquenchable curiosity for new technology and fresh ideas. 

Consider culture, not just skills

It stands to reason that leadership candidates should have technical and leadership skills. As we have seen, they should also be open to innovation and keen to learn and grow – and they should also fit the culture of the business. In most cases, you are looking for potential leaders who believe in evolution rather than revolution. They need to be able to steer the organisation towards its next chapter in a measured and mindful way and have the communication and interpersonal skills to bring everyone on the journey with them.

Widen the talent pool

Candidates that already work in the business know its ethos and can be nurtured for specific leadership roles. At the same time, acknowledge that internal processes, however comprehensive, might not produce the best result every time. In short, the leaders of the future may not be ready to lead right now, but with nurturing and focus, they may be the best people to lead your organisation in future years.

When considering external candidates, it is worth remembering that they bring fresh perspectives and new ideas, as well as current leadership experience. To avoid delays and disruption, develop internal pathways for promising executives while also establishing close relationships with high-level recruitment specialists. Sometimes it will be necessary to widen the talent pool and find the very best people from outside the organisation.

Every organisation’s succession planning needs to be tailored to their unique circumstances, but these steps can form the foundation to a rounded succession strategy. Remember to review your processes regularly and adjust them as necessary. As with everything else in your organisation, a culture of continual improvement is the best way to ensure you always have the leaders you need. 

If you’d like to find out more about succession planning, get in touch.