What does succession mean in business?

Succession in business is the process of identifying important positions in a company and planning and developing processes for individuals to eventually take over these positions. It is a plan that provides context and preparation for people who take over a job when the position becomes available.

The purpose of succession is that a business is able to ensure that they always have the right leaders in place, even if a change should occur quickly. This allows for a smooth transition. Failure to plan for succession leads to the possibility that a company cannot adapt after a key employee leaves their positions or passes away.