May 2025

SuccessionHR vs. Performance Management Tools - Understanding the Difference

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At SuccessionHR, our focus is on future readiness. We are here to help you identify, develop, and track potential successors for key roles within your organization. Our tools — including the Talent Grid, skills/competencies matching, and candidate development tasks — are all designed to ensure that you have the right talent ready when key positions open up.

This is different from performance management tools, which typically focus on current performance. Performance tools handle things like annual reviews, goal setting, and feedback tied to compensation and performance improvement. These systems are meant to evaluate how employees are performing today, while SuccessionHR is all about planning for the future.

Where We Focus: SuccessionHR
  • Identifying Key Roles within your organization.
  • Building a pool of high-potential candidates for these roles.
  • Using development tasks to prepare candidates for future roles.
  • Mapping out a clear path for leadership growth, without overlapping with performance ratings or compensation-based assessments.
Where Performance Tools Focus
  • Tracking and evaluating current job performance.
  • Setting goals and milestones for short-term development.
  • Managing performance reviews, ratings, and feedback.
  • Tied directly to compensation, rewards, and improvement plans.
How They Work Together

While performance management tools help you track how employees are doing right now, SuccessionHR ensures you're thinking about who’s ready for key roles in the future. We recommend integrating performance data into your SuccessionHR system (for example, high performers from the performance tool can be tagged as potential successors), but our focus remains on long-term development, not day-to-day performance.

This distinction ensures that each system complements the other without unnecessary overlap, helping you manage both today’s performance and tomorrow’s leadership needs effectively.