Tata succession test exposes India Inc’s leadership planning gaps

N Chandrasekaran's decision not to seek another term as Tata Sons chairman has put the spotlight on how prepared Indian companies are for a leadership change. The trustees of the Sir Dorabji Tata Trust have begun forming a selection committee to find Chandrasekaran's successor, The Economic Times reports.

Experts say many boards focus on extending a successful leader's tenure rather than building a pipeline of successors, leaving them vulnerable to sudden departures. Deloitte India partner Anandorup Ghose said the 'very big shoes to fill' factor often delays succession planning. Governance advisory firm InGovern's Shriram Subramanian noted that while companies must disclose whether a succession plan exists, implementation varies widely.

Large conglomerates like Tata have depth in talent across their group, but navigating complex businesses spanning multiple sectors and geographies remains a challenge. Kavil Ramachandran of the Indian School of Business said succession in such groups is like 'a relay race' requiring careful handovers. The process of identifying Chandrasekaran's replacement is now underway.