Retaining talent requires a considerable amount of planning because performing people will always seek a clear road map for their growth. Besides, effective organizations are those which look into the future and carve out a scenario or perspective. Succession planning guides the development activities of the executives and sends the right signals to the internal and external stakeholders.

The concept of succession planning has become important for many companies. Succession planning is a part of the process of preparing the future plan of the organization. The organization's involvement in succession planning should be strong enough to get positive results. It saves the cost and the time of the organization in searching new executives. The organization's plan should be proactive and encourage their own people to strive for higher positions and provide training before they can take up more responsible positions. The organization should identify the strengths of the potential successor and nurture him/her to fit into the position, which he/she is aspiring to achieve when the current managers are above to retire or move on.

Succession planning improves employee morale, lessens the effects of reengineering and downsizing, and creates a diverse talent pool within an organization. To effectively implement a succession plan, one should have a long-term direction of the company and its effective strategic plan to guide the course and direction. They should look into key issues like what are the requirements necessary for the continuity and development of the people's resources within the organization? How to develop and nurture talent within the organization for the future? What career paths should do talented people follow in similar industries?

Aggressive succession planning is one of the best ways for CEOs to ensure the long-term success of the organization and help to build a steady, reliable leadership talent. To identify that talent, the boards of organizations should show interest in succession planning. When one expert leaves the organization another one should immediately take up the job. For that the organization has to groom leaders at all levels. A customized flexible succession planning focuses on an opportunity for development, identifies key positions, maintains transparency, and measures the progress regularly. It should rigorously assess candidates both inside and outside too to fill up positions. Most of the time, designated CEO successors fail because the qualities that helped them reach the number two position aren't enough to climb to the number one level. They must also sharpen their self-awareness and sensitivity to the needs of bosses and influential peers, must learn to conduct themselves with a level of maturity and wisdom that signals that they are ready to be the chief executive.