How to Use Leadership Assessments for Succession Planning

Leadership Assessment Tools: The Key to Successful Succession Planning

Many organizations approach succession planning with the best intentions — assembling committees, collecting nominations, and holding regular talent review meetings. But even well-structured processes can fall short when decisions rely too heavily on subjective impressions or incomplete data.

Leadership potential is often misjudged. High performers are mistaken for future leaders, and emerging talent is overlooked. Without the right tools, it’s difficult to identify who is ready now, who could be ready soon, and what support is needed to close the gap.

That’s why leading organizations are embedding assessments into every stage of succession planning. Leadership assessments, such as the Leadership Skills Profile – Revised® (LSP-R®), help standardize decisions, reveal hidden talent, and align development with future leadership needs.

The following six-step process outlines how to use the LSP-R to strengthen each phase of succession planning — from identifying critical roles to measuring long-term progress.

For detailed templates and tools for each step, download SIGMA’s Practical Guide to Using the LSP-R® for Succession Planning (COMING SOON).

Step 1. Identify Critical Roles

Start by identifying critical roles to focus succession planning efforts on the positions that would disrupt operations the most if left vacant. Keep in mind that critical roles extend beyond the senior leadership team.

How leadership assessments help:

• Consider which roles require specific competencies that can be measured using the LSP-R – leadership assessments may not be used in this step, but they can be used to highlight critical positions in advance 
• Ensure future assessments are applied to the most critical positions

Practical tip:

Use structured criteria, such as vacancy risk and business impact, to prioritize roles. This sets the foundation for every step that follows. Use SIGMA’s Critical Role Identification Questionnaire to get started.

Step 2. Build Success Profiles Using Competency Data

Defining what success in a given role looks like is essential before evaluating readiness.

How leadership assessments help:

• Identify the competencies required for success in each role using a Leadership Competency Framework
• Validate those competencies with data from current role incumbents

Practical tip:

Build success profiles by combining core leadership traits with role-specific requirements. Use LSP-R results from incumbents to ensure accuracy and relevance, and build a strong success profile with the SIGMA Success Profile™ Template.

Step 3. Nominate Successors Objectively

Manager input is valuable — but it’s only part of the decision-making criteria. Combine subjective insights with assessment data for better nominations.

How leadership assessments help:

• Supplement nominations with competency-based scores
• Reduce bias and identify hidden potential that may not be visible day-to-day

Practical tip:

Use a 9-box grid that incorporates both manager ratings and assessment results. Calibrate successor lists in group discussions to ensure alignment and objectivity.

Step 4. Analyze Gaps and Readiness

Succession planning is not just about who’s next — it’s about who’s ready now. Assessment data helps uncover what each candidate needs to get there.

How leadership assessments help:

• Compare results to success profiles for target roles
• Identify individual and group competency gaps to inform development

Practical tip:

Use a structured worksheet, such as SIGMA’s Candidate Profile, to summarize key strengths, gaps, and development needs for each candidate. Prioritize shared development needs across the bench.

Step 5. Develop Talent for the Future

A succession plan is only valuable if it drives development. Assessment insights make those plans more targeted and effective.

How leadership assessments help:

• Provide candidates with personalized feedback and focus areas
• Link competency gaps to development goals and stretch assignments

Process tip:

Build individual development plans using tools like the Development Actions Form and offer strategic coaching, mentoring, or training to accelerate growth.

Step 6. Measure Progress and Refresh Plans

Succession planning is not a one-time task. Success depends on tracking development, reassessing readiness, and adapting to change.

How leadership assessments help:

• Monitor growth using reassessments and 360-degree feedback
• Refresh the leadership bench based on performance, engagement, and updated needs

Process tip:

Reassess candidates every 12-18 months. Track key metrics like competency progress, development milestones, and bench strength to ensure succession plans remain current and impactful. Incorporate SIGMARadius, a 360-degree feedback tool that gathers input from supervisors, peers, and direct reports. This approach provides a well-rounded view of leadership growth and helps validate whether development efforts are translating into on-the-job behavior change.

From Planning to Pipeline: Making Succession Strategy Work

Effective succession planning is ongoing, evidence-based, and actionable. With the LSP-R®, organizations can identify critical roles, define success, evaluate talent objectively, and develop future-ready leaders.