Corporate India produces a flop succession show
Experts warn of imminent disruption to business continuity unless addressed institutionally, attributing the risk to multifaceted business challenges.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Technology OfficerVisitIIM KozhikodeIIMK Chief Product Officer ProgrammeVisitIIM LucknowIIML Chief Operations Officer ProgrammeVisitSo, is India Inc merely checking the boxes when it comes to succession planning?
Data from Deloitte shared exclusively with ET shows that the process works at just one of four organisations, although seven out of 10 do have a framework in place for succession planning.
“While succession planning is witnessed as an established process across organisations (72%), merely (having) its presence doesn’t often translate into effective outcomes,” said Neelesh Gupta, director, Deloitte India. “Our analysis indicates that only 27% of the companies surveyed out of about 160 say it is effective. Progressive organisations are pivoting to coaching, immersions and job rotations as effective talent development levers.”
About 29% of companies said that candidates chosen for the CEO position through succession planning are successful while 32% said that the process works for CXO-1 level candidates. Still, at the CXO level, only 18% of companies found succession planning effective.
Measuring the implementation of succession planning, the survey showed that only 4% of organisations rate it as highly effective, while 7% found it very
