Business Definition for: Succession Planning

The preparation for the replacement of one postholder by another, usually prompted by retirement or resignation. Succession planning involves preparing the new postholder before the old one leaves, possibly with training or through work shadowing. At a senior level, management succession should be accomplished as smoothly as possible in order to avoid organizational crises caused by absent or inadequate top management. General Electric is held to be an exemplar of succession planning for its successful transition following the retirement of Jack Welch.

Source: BNET