Template Succession Planning Policy

You can also download this template policy as a Word document or PDF. 

[Name of Co-operative] 

[Date] 

1. Introduction 

1.1 The purpose of this Succession Plan Policy is to define and communicate [the co‑operative’s] approach to succession planning. 

1.2 Adopting and maintaining a succession plan reflects co-operative governance best practice as outlined by the Co‑operative Corporate Governance Code which states that ‘The board should engage in active discussions around composition and succession planning’ (Principle 4C) and that “the board should regularly review its composition, succession plans (section 4 provision 8).  

2. Purpose 

2.1  The purpose of a succession planning policy is to practically and effectively plan for when key positions in [the co‑operative] become vacant so that they can be filled by candidates equipped with the necessary skills and capabilities and with a smooth transition.  

2.2 Effective succession planning can support business continuity and avoid disruption, ensuring the continued success of [the co‑operative].  

3. Approach 

3.1 The following positions have been identified as requiring a succession plan: 

Board positions: 

• Board Chair 
• Audit and Risk Committee Chair 
• Remuneration Committee Chair 

Staff and Officer positions: 

• Chief Executive Officer 
• Society Secretary 
• Chief Financial Officer 

3.2 Positions requiring a succession plan should be kept under periodic review in consultation with leadership team, board members and HR as appropriate. 

3.3 For staff positions, wherever feasible and appropriate, bearing in mind the size and activities of [the co‑operative], we will prioritise internal development and recruitment of existing colleagues to roles as far as possible.  

3.4 This will be done by way of the following methods: 

• Personal development plans for all staff members between grade/role band xx in [the co‑operative] to be reviewed and discussed twice yearly. 
• Ongoing learning and development needs to be identified and assessed. Learning and development requests will be considered and progressed in line with any relevant policies and procedures. 
• Performance reviews and appraisals will also comprise discussions on development and progression as well as reflecting on performance. 
• Ongoing opportunities for on‑the‑job learning so as to maintain a culture of skills and knowledge-sharing, business continuity and working to avoid key person dependency. 

 3.5 For Board positions, the approach to succession planning will comprise the following elements: 

• Skills audit: upon joining the board, directors should complete a skills audit which articulates their experience knowledge, qualifications and capabilities. This should be reviewed and updated periodically. 
• Performance evaluation and appraisal should be undertaken periodically, both for the board as a whole and individually to draw out any ambitions as well as development needs. 
• Succession planning to feature as an annual standing agenda item for discussion and will include HR and other colleagues as necessary. 
• When vacancies are imminent, board to consider any potential successors so that necessary development and shadowing opportunities can be facilitated.  
• If assessed that training and development is needed, these requests will be considered and progressed in line with any relevant policies and procedures. 

4. External Support 

4.1  External and independent consultants may be engaged to support on succession planning activity. 

5. Policy Review 

5.1  The Policy will be reviewed annually. 

The Policy was agreed by [the co-operatives board/Nominations Committee on [date].

Templates to download

These templates can also be accessed in same document as the Template Succession Policy, which can be downloaded as Word file or PDF.

Template Succession Plan

Template Personal Development Plan for potential internal successor