The growing number of companies who are nurturing a talent pool and promoting from within is good news for leaders-in-waiting.

Succession planning, as many business leaders know, has a long timeline. But to be most effective, the process must start earlier and have a wider scope than you might think.

At my firm, we use the mantra “Strategy first, people always.” Succession planning only works when we start with a clear understanding of business goals and stakeholder objectives.

Of course, effective succession planning starts with identifying individuals who exhibit the potential to take on leadership roles in the future. We just hadn’t been doing this consistently.

WHY SUCCESSION PLANNING IS NEGLECTED. There are many reasons for neglecting proactive succession planning. Some CEOs, like Logan Roy, simply do not want to acknowledge that they can be replaced.

A solid succession plan often results in a higher valuation if selling, and a successful transition when passing the reins to younger employees, family, or establishing an ESOP.