A company's long-term success depends not only on today's performance but also on its future leadership strength. However, according to the 2024 Deloitte Human Capital Trends report, only 16% of companies say they are "very ready" for leadership development. This shows that talent management and succession planning are still a weak link in many organizations.
So what should be done to grow the leaders of the future today?
The answer lies in the SAP SuccessFactors Succession & Development module.
The Leadership Crisis and Talent Gap: Global Realities
For companies worldwide, leadership succession planning is rising among strategic priorities:
- Gartner (2024): 54% of HR leaders admit there are delays in growing leaders for critical positions.
- McKinsey: 46% of organizations report being inadequate at filling senior leadership positions.
These data show that companies can sustain growth not only through recruitment but through competency development and succession planning.
What Is SAP SuccessFactors Succession & Development?
SAP SuccessFactors Succession & Development is an integrated solution that enables companies to identify potential candidates for critical roles, track their development and structure their career paths. With this module:
- high-potential employees are identified,
- succession plans are made for at-risk positions,
- employees are supported with leadership-development programs.
Benefits of Digital Succession Planning
1. Preparedness for Critical Positions - According to Harvard Business Review, leaders from internal sources have 25% higher organizational commitment. SuccessFactors systematizes this advantage by increasing the visibility of internal talent.
2. Early Identification of High-Potential Employees - Thanks to SuccessFactors algorithms and performance data, potential leadership candidates are detected early.
3. Competency-Based Development Plans - Personalized development plans are created for each employee. Worldwide, 61% of companies report that attrition drops by 30% among employees offered career development (LinkedIn Talent Trends, 2023).
4. Visual Talent Matrix and Risk Map - The module makes it possible to visualize leadership gaps and critical risks. This lets HR managers act proactively.
Real Results: Examples from SAP Users
- Unilever, using SAP SuccessFactors Succession & Development, made internal-candidate appointments to more than 150 positions within 3 years.
- Coca-Cola HBC reduced external hiring for leadership positions by 35% while increasing internal mobility by 60% thanks to this module.
- According to SAP's 2024 data, 70% of companies using the module reported shorter time and higher accuracy in the leadership-succession process.
Where Should Companies Start?
- Do a Position Risk Analysis: Critical roles should be identified and a list of backup candidates created for these positions.
- Create a Talent Inventory: Identify in-house potential leaders and their strengths.
- Build Development Programs: Support with mentoring, leadership academies and digital learning tools.
- Integrate the SuccessFactors Module: Build a holistic structure with the performance, learning and talent-management modules.
Conclusion: Plan Today for Future-Ready Organizations
In today's rapidly changing business world, the "we'll just replace them" approach is giving way to a "let's build the future today" strategy. The SAP SuccessFactors Succession & Development module makes organizations resilient against leadership crises while also supporting employee engagement and development.
If you want to grow the leaders of the future, you must take a step today.
Frequently Asked Questions
What is SAP SuccessFactors Succession & Development?
SAP SuccessFactors Succession & Development is an integrated talent-management module that lets organizations identify potential candidates for critical roles, track their development and structure their career paths. High-potential employees are identified and succession plans for at-risk positions are managed in the module.
What are the benefits of digital succession planning?
Key benefits are preparedness for critical positions, early identification of potential leaders through performance data, and competency-based development plans for each employee. The module's visual talent matrix and risk map make leadership gaps visible, which helps HR managers act proactively rather than reactively.
Where should organizations start with succession planning?
Start by identifying critical roles and building a list of backup candidates for them, then create a talent inventory of in-house potential leaders and their strengths. Development is supported with mentoring and leadership programs, and the module is integrated with performance, learning and talent management.
