Indian leaders believe successors come within business

A survey by Grant Thornton revealed 50% Indian corporates believe that their successors will come from within the business

Half of Indian corporates believe that their successors will come from within the business, while 26% see them coming from outside, says a survey.

Besides, 48% of the respondents said that they are either using or have used the services of a business coach to develop their leadership skills.

According to tax and advisory firm Grant Thornton's International Business Report, 50% of Indian business leaders believe their successors would come from within the business while 26% say their next in line would come from outside the business, from a competitor organisation or different sector.

Only 23% of the business leaders haven't even considered as to where their successors would come from.

The UAE tops the list of countries where 54% of business leaders see their successors coming from within the business, while in the Nordic countries, only 21% of business leaders subscribe to this view.

In BRIC nations as a whole, 40% businesses hold this view, globally 43% business leaders see their successors coming from within the business.

The survey further noted that 48% of businesses in India are either using or have used the services of a business coach to develop their leadership skills.

Grant Thornton Partner, Business Advisory Services, Vinamra Shastri said: "It is heartening to see that a large number of business leaders have thought about the issue of succession, which is critical to the long-term growth and sustainability of every business."

Moreover, if 50% of businesses believe that their successors would come from within the business, it becomes imperative for them to spend significant time in coaching future leaders in their organisations, Shastri said.

Moreover 74% business leaders in India said that their personal leadership skills assessments help them do so, followed by leadership skills assessments from staff (60%) and setting challenging goals and monitoring progress (56%).

In terms of leadership attributes, integrity, a positive attitude and communication came out on top globally. While, in India, positive attitude (98%), communication (94%), ability to inspire (98%) and confidence (96%) were among the top leadership attributes.

These findings are significant in the view of a proposal being considered by market regulator Sebi. If implemented, the norms will make it mandatory for all listed Indian companies to put a succession plan in place.

This proposal aims at protecting the interests of investors in the event of the untimely death, departure or poor performance of a leader; all of which usually hurt investors' interest.