Corporate or government roles, there’s no getting away from timely succession plans

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Subscribe to enjoy similar stories. The importance of succession planning, whether in the context of corporate leadership or governance roles, cannot be over-emphasized. For business operations, the value of having a plan in place is well understood by now.

It ensures companies can run smoothly without interruption after people in key positions move on. Some find new opportunities, others retire, and, given that we are all mortals, a few might even pass away. Nobody is indispensable.

‘TINA’ is a catchy acronym for ‘there is no alternative’ that individuals at the helm might like to believe is true of themselves. But, in the real world, alternatives exist. Organizations, corporate or governmental, will carry on.

However, the manner of their continuance is affected by the presence or absence of key personnel. The wise among them recognize this and prepare accordingly. In the case of a company, failure on this front will, at worst, adversely affect its performance and the fortunes of its stakeholders, owners and employees included.

In the case of major public institutions like, say, the Reserve Bank of India (RBI), a failure to fill key positions in good time—indeed, well in advance—can impact the entire country. Potentially, i.e., and perhaps adversely too. Yet, governments of the day tend to drag their feet on making crucial appointments.

True, given the need for checks and balances, the process is cumbersome. A selection panel must be set up, then candidates picked, security clearances sought, and so on. But none of this is new.