Succession planning relates to a system that you design. This includes determining the resources that you need and setting up what we will call progression chains.

The first step includes the system itself, and this involves three main components.

• Identify the critical people for your succession plan.
• Develop progression procedures.
• Incorporate top-level support and buy-in.

The critical people for your succession plan are those whose absence directly interferes with business operations. In a small, family-run organization, this could be just two people (namely mom and dad), and in a medium-sized organization, this could just be four people (for example, the CEO, COO, HR Director, and CFO). As things get larger, the numbers will increase. Beyond those first people that you identify, you must delve down at least two layers to reach all of the people involved in your succession plan.

Note: In businesses that experience high levels of turnover because of contracts, burnout, or retirements, you will need to work through three layers.