What is succession planning's purpose in performance management?

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Succession planning in performance management centers on preparing the organization for future leadership and critical-role needs by evaluating who is ready for higher responsibilities and what development is required to get them there. It uses performance insights to identify potential successors for key roles, assess gaps between current capabilities and future requirements, and tailor development plans such as coaching, stretch assignments, or targeted training. This focus ensures a smooth leadership transition and continuity when openings occur, rather than addressing logistical policies or compensation for all employees. That’s why the best fit is gauging readiness and development needs for key roles.