Workforce Planning and Succession
5
Forecasting Methods
Trend ratio regression Delphi nominal group
9
Box Grid
Performance × Potential matrix
2
Planning Types
Succession vs replacement
The Planning Process
supply and demand, but for talentWorkforce planning starts with understanding where the organization is today and where it needs to be. You analyze the current workforce (supply), forecast future needs (demand), identify gaps, and build strategies to close them. The forecasting method you choose matters.
Trend Analysis
Uses historical data to project future needs based on patterns over time
Ratio Analysis
Ties headcount to a business metric like revenue per employee or patients per nurse
Regression Analysis
Statistical method that predicts staffing needs based on multiple variables
Delphi Method
Anonymous expert panel reaches consensus through multiple rounds of feedback
Nominal Group Technique
Structured group meeting where members independently rank priorities then discuss
The 9-Box Grid
The 9-box grid plots employees on two dimensions. The horizontal axis represents current performance. The vertical axis represents future potential. Each employee lands in one of nine cells, and that placement drives development decisions.
Enigma
Growth Employee
Future Star
Underperformer
Core Player
High Performer
Talent Risk
Solid Performer
Trusted Pro
Performance (low → high) across, Potential (low → high) up
Succession vs Replacement Planning
Succession planning is NOT replacement planning. Succession develops multiple candidates; replacement identifies immediate backups.
Succession Planning
- Long-term and strategic
- Develops multiple candidates
- Includes coaching and mentoring
- Builds leadership pipeline
Replacement Planning
- Short-term and reactive
- Identifies one backup per role
- No developmental component
- Emergency coverage only
want to test yourself on this?
Practice questions on workforce planning, the 9-box grid, and succession planning with instant feedback
Practice NowExam Traps
9-Box Grid Measures Performance × Potential
The grid always uses two axes. Performance (what someone has done) on one axis and potential (what someone could do) on the other. If a question asks about a third dimension, it is not the 9-box.
Succession Is NOT Replacement
Succession planning develops a bench of multiple candidates over time. Replacement planning identifies a single immediate backup. The exam deliberately conflates these.
Grid Interpretation Questions Are Common
Expect a scenario where you must place an employee in the correct box based on performance and potential ratings. High performance but low potential goes in a different box than high potential but low performance.
Succession = Develop
Succession develops multiple candidates over time. It is proactive and long-term.
Replacement = Backup
Replacement identifies who steps in tomorrow if someone leaves. It is reactive and immediate.
You are training multiple pieces to play key squares on the board. A pawn could become a queen. A knight could take over a bishop role. You invest time developing each piece so that no matter which one falls, someone else is ready to step up.
You simply know which piece moves to which square if the queen falls. No training, no development. Just a list of who goes where in an emergency.
Imagine a tic-tac-toe board. The bottom axis is performance (low to high). The side axis is potential (low to high). Each employee lands in one of the nine squares. Top-right is your future star. Bottom-left needs attention.
You look at the board and predict how many pieces you will need next season. Trend analysis looks at history. The Delphi method asks expert judges. Ratio analysis ties headcount to a business metric like revenue per employee.
Ready to test your SHRM-CP knowledge?
1,200+ practice questions written by certified professionals.
Start Practicing SHRM-CP