A Three-Horizons Approach to Succession Management
A Three-Horizon Approach to Succession Management
Succession management is one of the most critical priorities for organisations striving to remain resilient and future ready. It’s a strategic process that ensures leadership continuity while fostering long-term organisational growth.
For me, the principles of succession management align closely with the McKinsey Three Horizons Model, a framework introduced in the 1990s to balance short-term performance with long-term transformation. While the business environment has evolved dramatically since then, the core idea—managing multiple horizons simultaneously—remains deeply relevant. This concept serves as the foundation of my approach to succession management: a multipronged, concurrent strategy to develop leaders at every level.
In this blog, I’ll outline a three-horizon model for succession management that integrates immediate readiness, pipeline building, and future leader development. Let’s explore its key components.
Horizon 1: Replacement Planning – Addressing Immediate Needs
At the base of the model is replacement planning, which focuses on identifying successors for critical roles to mitigate disruption during unexpected transitions.
Why It Matters
Sudden vacancies in key positions can destabilise operations and hinder progress.
Replacement planning ensures seamless transitions by equipping individuals to step into roles at short notice.
Organisations must continuously evaluate roles critical to their success, identify potential successors, and provide them with the skills and knowledge needed for immediate readiness. This is not just a reactive measure but an essential part of sustaining business continuity.
Horizon 2: Building Readiness – Preparing Leaders for Emerging Business Priorities
The second horizon focuses on creating a robust leadership bench, ready to meet the business demands and priorities of the next 3-5 years. This involves identifying leaders who bring a track record of success and leadership impact, aligning individuals with future priorities, and preparing them to rise to the challenge.
Why It Matters
Leadership gaps often occur when organisations prioritise immediate needs without investing in future talent.
A strong leadership pipeline offers flexibility, enabling organisations to adapt to new opportunities and challenges.
How to Prepare Leaders for Emerging Priorities: Implement targeted development initiatives, coaching opportunities, and cross-functional projects that provide diverse experiences. This should include a robust assessment of capabilities and tendencies relative to critical business priorities. These initiatives broaden capabilities and help employees develop the adaptability required for emerging leadership roles and business priorities.
Horizon 3: Accelerated Development – Shaping Senior Leadership Potential
Horizon 3 is focused on the long-term leadership needs of the organisation. This includes accelerated development initiatives, that focuses on preparing a future-ready pipeline of leaders through intensive and tailored development programs.
Why It Matters
Senior leadership transitions have far-reaching strategic implications.
Proactive development of high-potential leaders ensures they are equipped to handle complex, high-stakes responsibilities.
Organisations should identify future senior leaders early, providing them with opportunities for stretch assignments, strategic exposure, and leadership coaching. These experiences help them build critical skills and develop the mindset needed to drive future organisational success. This should include a differential focus on what I describe as ‘pivot skills’. Pivot skill are the core capabilities that serve leaders across multiple situations and at all stages of their career.
Balancing Priority and Readiness
This three-horizon approach highlights the balance between priority and time to readiness:
Short-term readiness ensures continuity by addressing immediate needs.
Mid-term preparation develops a strong bench of leaders for emerging challenges and business priorities.
Long-term vision focuses on cultivating future ready leadership at the top.
Organisations must commit to all three horizons simultaneously to safeguard their future while addressing present-day demands.
Final Thoughts: Succession Management as a Strategic Imperative
Succession management isn’t a one-time project—it’s an ongoing commitment to organisational resilience and growth. By adopting a multipronged approach, organisations can ensure they are well-prepared for leadership transitions at every level.
So, how does your organisation stack up? Consider these questions:
Are you prepared for sudden leadership changes?
Do you have a robust leadership pipeline in place?
Are you actively developing future ready leaders for senior roles?
Addressing these questions will help you identify which areas of your strategy require attention and investment.
Start today. Build an approach to leadership development and succession management that doesn’t just meet today’s needs but also paves the way for tomorrow’s success.