Great leadership is essential for a company to succeed, so naturally, selecting the right individuals to lead your business can be a daunting task. From identifying top candidates to determining who is the best fit and ultimately training them for success, the process can be a headache if you don’t have a clear path forward.
Whether you’re a CEO looking for a successor or filling other leadership roles, this expert-backed, step-by-step guide will help you identify the best leaders for your organization. Plus, experts share their best advice on training successors, so they can lead with confidence.
How to Identify Potential Successors
Step 1: Recognize What Roles Need to Be Filled
“Leaders can anticipate and recognize which roles need to be filled by consistently reviewing both short-term and long-term objectives,” says Bobbie Weichselbaum, CEO of E. Gluck Corporation, a global fashion watch manufacturer. “Regular evaluations of current teams can reveal any missing core competencies or areas that are overburdened.”
Weichselbaum also suggests talking to employees to discover “pain points” within the company, where new leadership or talent could benefit.
“Once a need is identified, leaders can create detailed job descriptions and offer cross-training opportunities to ensure the team remains agile and capable of adapting to change,” she says.
When a CEO is transitioning out, Shama Hyder, the CEO of Zen Media, recommends breaking down the CEO’s job into different operational functions and looking at succession as a distributed model.
“It might not be one person. It might be, like, three different people with different goals and different areas of competencies,” says Hyder. “I think you start looking at it as competencies and what you need filled. Then, it’s like any other job that you are trying to fill.” She says that this could take the pressure off of finding one “perfect” person to assume the CEO position.
Step 2: Pick Out Promising Candidates
The best place to start your search for successors is within your own company. While hiring externally may end up being the best choice for your business, promoting internal candidates “fosters growth and loyalty,” says Weichselbaum.
“A leader should begin by looking within the company for high performers—those who not only meet but exceed expectations,” she says. “It’s important to also consider individuals who demonstrate leadership qualities, even if they haven’t yet held a formal leadership role.”
If it’s not possible to promote internally, special consideration is needed when hiring external talent.
“When hiring externally, it’s critical to find candidates who not only have proven experience in the relevant field but also align with the company’s values, culture and work ethic,” she adds, saying that individuals who aren’t in alignment will struggle regardless of their skill set.
Step 3: Evaluate Each Candidate
When determining the right candidate for a leadership role, numerous factors should be taken into account.
Experience & Background
Looking into your candidate’s experience will give you a good understanding of what they will bring into the role, who they are as an employee and what skills they may have developed during their career.
When evaluating a candidate’s experience, ask these questions:
• Have they been in any leadership positions in the past?
• What specifically about their background makes them suited for the position?
• Is there anything about their experience or background that could be problematic once they step into the position? Are these things trainable?
• How much training would this candidate need to be ready to assume the role?
“A candidate should have a deep understanding of the competitive landscape and be familiar with industry best practices and trends,” says Weichselbaum.
Skills
Now that you have identified the roles that need to be filled and what skills are required to excel in those roles, look at your candidates’ skills to see if they are a good fit.
“When identifying the appropriate candidate for a role, it’s essential to evaluate both technical skills and soft skills,” says Weichselbaum. “Hard skills, such as industry-specific knowledge or technical abilities, are foundational. However, equally important are communication, adaptability and problem-solving skills.
“If necessary, companies can invest in targeted training programs to help current employees develop specific skills for a new role,” she says.
Past Performance
Past performance is a key indicator of how the potential successor will perform in their new role, according to Weichselbaum. “How well have they worked within their teams? Do they show initiative and have they consistently met or exceeded expectations?” she says.
To be able to look back at the employee’s past performance, Hyder emphasizes the importance of documentation. “Document everything,” says Hyder. “When things happen with certain people, document them so you can start to see patterns—the good and the bad, everything. A mistake is a mistake. So, like, things happen, but repeated mistakes show you a pattern.”
Personality
A candidate can look great on paper, but if they don’t have the personality for being a leader, they could be ineffective in their new role.
Great leaders will be passionate about the growth of their company or teams. They are wonderful communicators and even better listeners, and they have the ability to inspire subordinates and gain their respect easily.
“Candidates should also be open to feedback and show a willingness to improve based on constructive criticism they receive from their leaders,” says Weichselbaum.
How to Train Successors for the Job
“Training for potential successors should be structured, hands-on and ongoing to effectively prepare them for leadership roles,” says Weichselbaum. “Regular performance reviews, along with peer feedback, help assess leadership effectiveness and areas for improvement.”
She stresses the importance of providing successors with shadowing opportunities and mentorship throughout the entire process.
“Shadowing is a vital aspect of the training process, allowing the employee to learn firsthand from current leaders, observe their management styles and understand decision-making processes. This mentorship ensures that the employee receives continuous guidance and support as they grow into their new role.”
She also notes that a development plan of 12 to 36 months is generally enough time to train the successor for the position, and the process should start with “exploration and assessment, then gradually move into hands-on training.”
“The plan should allow them to shadow and progressively take on more responsibility, building up their skills and independence. The goal is for them to eventually transition into a leadership role where they can function autonomously while continuing to receive support and guidance,” she adds.
Small Business Considerations
In a small company, bias and claims of bias within the decision-making process are more likely to occur. To avoid this challenge, Hyder recommends that small and family-owned companies bring in an external adviser to ensure an unbiased process.
“One of the things that I recommend is bringing in an outsider, someone who can be objective, because you’re just gonna be too close to it, especially if family is involved,” she says.
According to Weichselbaum, succession planning within a small business is largely the same as in a larger organization, though the process will be more informal with a smaller pool of candidates, and chosen successors will have more frequent opportunities for hands-on training.
“The principles of identifying potential, providing training and offering mentorship are still crucial,” she says. “Even in smaller businesses, taking the time to evaluate needs, identify talent and provide development opportunities ensures a stronger, more cohesive team.”
Key Takeaways
Succession planning often isn’t a breeze and can be tricky to navigate, but dividing the process of identifying quality candidates into steps will help you move forward. Start by recognizing what roles need to be filled and look for gaps in skill sets within your organization. Compose a list of candidates and evaluate each one based on key factors such as their experience and skills, along with their personality and past performance.
“It’s important to remember that not every potential successor will be the right fit. Always have a backup plan to ensure continuity and stability within the organization,” says Weichselbaum.
Giving successors at least a year of mentorship and training will ensure they step into the role with confidence to lead your organization, while also allowing other employees to get used to their leadership.
“Gradual transitions into new roles are key to ensuring smoother adaptation. Abrupt changes can cause instability,” she says. “Succession planning is not a one-time event—it’s an ongoing process. Continuous support and coaching remain essential throughout this journey.”
This article originally appeared in the July 2025 issue of SUCCESS+ digital magazine. Photo courtesy of Ground Picture/Shutterstock.
