Archive · 5 Jun 2025
Indian Companies Face Succession Planning Challenges
Many Indian companies know it's important to plan who will take over leadership roles, but not many have official plans.
This is because they are more focused on making money quickly.
This can cause problems like companies not doing as well and having trouble keeping up with new ideas.
Especially in family-run businesses, it can be hard to decide who should take over.
Some sectors, like IT, are doing better at this, which is good.
Companies need to focus on planning for the future as much as they focus on money.
Only 18% of Indian corporates have formal succession plans.
Succession planning is a low strategic priority for many organizations.
Lack of planning can lead to strategic drift and reputational issues.
Nearly 50% of organizations lack board members under 40, affecting agility.
IT sector shows progress with 31% having formal succession strategies.
- Who
- Indian corporates and organizations.
- What
- Succession planning in Indian organizations.
- When
- The report was published on June 4, 2025.
- Where
- India.
- Why
- To ensure leadership continuity, cultural alignment, and future readiness, and to remain globally competitive.
Views on Succession Planning
Views on Succession Planning
Short-term vs. Long-term Focus
Views on Succession Planning
Emphasizes short-term growth, potentially at the expense of long-term leadership.
Views on Succession Planning
Stresses the importance of succession planning for continuity, cultural alignment, and future readiness.
- Formal Succession Plans
- 18% of Indian corporates
- Succession Planning Priority
- Lowest among strategic priorities for many
- Organizations without Under-40 Board Members
- Nearly 50%
- IT Sector Succession Strategies
- 31% of IT firms have formalised strategies
- Manufacturing Succession Strategies
- 15%