03-06-2025
Most Indian companies value succession, only a few chart out formal plans
Nearly 85% of
Indian corporates
recognise the importance of
succession planning
, but a mere 18% have established formal plans, according to a report by TimesPro.
The report-State of Succession Planning in Indian Organisations- says succession planning ranks the lowest among
strategic priorities
, with only 17% of organisations placing it at the forefront.
Experts believe organisations lacking structured succession frameworks have experienced strategic drift, diminished
market value
and reputational setbacks.
One TimesPro expert said the emphasis among corporates continues to be on "short-term growth, often at the cost of long-term
leadership continuity
."
Another expert who did not want to be identified stressed that succession planning enables continuity, cultural alignment and future readiness, especially within
family-owned enterprises
where emotional stakes and informal governance structures often impede objective decision-making.
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He highlighted challenges such as resistance to ownership transfer, financial disputes, protracted transition timelines and sibling rivalries-all of which can derail effective succession. The
TimesPro report
also drew attention to a striking concern-nearly 50% of surveyed organisations lack a board member under the age of 40, signalling a significant gap in age diversity and innovation potential.
"This is a crisis of another kind-one that affects agility and future-readiness. If India Inc. aspires to remain globally competitive, succession planning must be accorded the same seriousness as fiscal policy," said Anish Srikrishna, CEO, TimesPro.
The IT sector was cited as a positive outlier, with structured succession initiatives gradually stabilising leadership transitions after initial turbulence. Among sectors surveyed, 31% of IT firms have formalised succession strategies, followed by 15% in manufacturing-often hampered by family-led leadership-and the services and retail segments, where high attrition and growth pressures dominate.
