<p>The list of chief executive officers (CEOs) of Indian origin occupying leadership positions in Fortune 500 companies overseas is growing day by day. With workplaces getting globalised and technological disruption becoming the order of the day, Indian professionals have demonstrated the uncanny ability to embrace change and uncertainty.</p>.<p>Making careers in the corporate world equipped with a grounding in science, technology, engineering and mathematics (STEM), Indians are comfortable with data, are excellent multi-taskers, are very adaptable and capable of dealing with workplace diversity. The corporate world overseas eschews discrimination, recognises their talent, treats them with respect, ensures wage parity and imbibes them with a sense of meritocracy resulting in leadership positions for them in due course of time.</p>.<p>What about potential Indians in India Inc? Equally critical to the country’s economy, to provide stability to our financial structures, to safeguard shareholders, to ensure robust dividends year after year, why aren’t as many competent Indians figuring in CEO lists at home?</p>.<p>Companies do need succession planning, properly laid out career growth plans for its employees to ensure continuity of management and a vigorous motivated workforce. The aspiration to occupy the corner office would be second nature to every career-minded Indian professional requiring steady professional growth and planned career progression right up to CEO positions in their respective organisations, equally in India or overseas.</p>.<p>Ironically, it is the much-maligned public sector undertakings (PSUs) that provide a fair and equitable opportunity for Indian professionals to make it to the top of their organisations. The composition of the Public Enterprises Selection Board (PESB), meant to advise the government on appointments to top management posts, comprises of eminent persons with large and distinguished careers in the field of management of public and private enterprises with a proven track record of performance.</p>.<p>Public Sector employees are, by and large, assured of a steady climb up the corporate ladder right up to CEO and Board-level positions with the full knowledge that the PESB will ensure an impartial, fair and transparent conduct right across the selection process.</p>.<p>Among the private sector companies, the scenario is totally different. Leave aside family-owned corporates like Reliance or the Birla or the Godrej group, or even Wipro. Here the route to the corner office is justifiably pre-decided, it is generally accepted that the top position would be occupied by a member of the family, but surprisingly professionally managed corporate entities like ITC, Larsen & Toubro besides several others have had to put up with long-serving CEOs managing the organisation for decades together!</p>.<p>Otherwise ranked among the best employers in the country, where entry-level individuals join with stars in their eyes, believing they will be able to create benchmarks in every business of the company and be part of a continuous growth story, how do employees progress career-wise when there is no vacancy at the top?</p>.<p>When long-serving CEOs never vacate their positions for years, stagnation sets in in the organisation, affecting the morale of employees through the entire chain of command. Because the chief does not retire, his deputy does not, and so on it goes, right down the corporate ladder. Demoralisation and poor performance become the norm all the way down the line. Under the circumstances, the creation of a performance culture for nurturing key talent becomes difficult.</p>.<p>The all-important, incumbent CEO normally takes all decisions, including the choice and timing of a successor. Although choosing an heir is an important part of the CEO’s role, he declares the unsuitability of everyone available so he can continue to head the organisation in the best interests of the shareholders!</p>.<p>The Board normally tags along with the CEO, as amiable independent board members and the company’s shareholders are primarily concerned with the reigning share price, dividends and bonus issues. Under these circumstances, succession and employee morale evidently take a backseat.</p>.<p>Meanwhile, the CEO, whose job it is also to groom the next leader, talks of identifying next-generation employees, initiate career development programs, tries to encourage existing employees.</p>.<p>Whether organisational performance would have improved if the CEOs had passed on the baton to a younger generation after completion of their assigned terms is a moot point. Only room at the top can bring about vacancies all along the chain of command for the younger generation to fill.</p>.<p>When similar performers are rising to be CEOs of Fortune 500 companies overseas, when we have India’s public sector enterprises as a role model for succession planning, why can’t corporate watchdogs propel CEOs of professionally managed private sector companies to practise end of term self-abnegation for the organisation’s sake? Not only will this strengthen corporate performance, enable motivated, career-oriented employees but also will help more CEOs of India Inc join the growing list of global CEOs of Indian origin.</p>.<p><em>(The writer is a former director on the Board of BEML)</em></p>
<p>The list of chief executive officers (CEOs) of Indian origin occupying leadership positions in Fortune 500 companies overseas is growing day by day. With workplaces getting globalised and technological disruption becoming the order of the day, Indian professionals have demonstrated the uncanny ability to embrace change and uncertainty.</p>.<p>Making careers in the corporate world equipped with a grounding in science, technology, engineering and mathematics (STEM), Indians are comfortable with data, are excellent multi-taskers, are very adaptable and capable of dealing with workplace diversity. The corporate world overseas eschews discrimination, recognises their talent, treats them with respect, ensures wage parity and imbibes them with a sense of meritocracy resulting in leadership positions for them in due course of time.</p>.<p>What about potential Indians in India Inc? Equally critical to the country’s economy, to provide stability to our financial structures, to safeguard shareholders, to ensure robust dividends year after year, why aren’t as many competent Indians figuring in CEO lists at home?</p>.<p>Companies do need succession planning, properly laid out career growth plans for its employees to ensure continuity of management and a vigorous motivated workforce. The aspiration to occupy the corner office would be second nature to every career-minded Indian professional requiring steady professional growth and planned career progression right up to CEO positions in their respective organisations, equally in India or overseas.</p>.<p>Ironically, it is the much-maligned public sector undertakings (PSUs) that provide a fair and equitable opportunity for Indian professionals to make it to the top of their organisations. The composition of the Public Enterprises Selection Board (PESB), meant to advise the government on appointments to top management posts, comprises of eminent persons with large and distinguished careers in the field of management of public and private enterprises with a proven track record of performance.</p>.<p>Public Sector employees are, by and large, assured of a steady climb up the corporate ladder right up to CEO and Board-level positions with the full knowledge that the PESB will ensure an impartial, fair and transparent conduct right across the selection process.</p>.<p>Among the private sector companies, the scenario is totally different. Leave aside family-owned corporates like Reliance or the Birla or the Godrej group, or even Wipro. Here the route to the corner office is justifiably pre-decided, it is generally accepted that the top position would be occupied by a member of the family, but surprisingly professionally managed corporate entities like ITC, Larsen & Toubro besides several others have had to put up with long-serving CEOs managing the organisation for decades together!</p>.<p>Otherwise ranked among the best employers in the country, where entry-level individuals join with stars in their eyes, believing they will be able to create benchmarks in every business of the company and be part of a continuous growth story, how do employees progress career-wise when there is no vacancy at the top?</p>.<p>When long-serving CEOs never vacate their positions for years, stagnation sets in in the organisation, affecting the morale of employees through the entire chain of command. Because the chief does not retire, his deputy does not, and so on it goes, right down the corporate ladder. Demoralisation and poor performance become the norm all the way down the line. Under the circumstances, the creation of a performance culture for nurturing key talent becomes difficult.</p>.<p>The all-important, incumbent CEO normally takes all decisions, including the choice and timing of a successor. Although choosing an heir is an important part of the CEO’s role, he declares the unsuitability of everyone available so he can continue to head the organisation in the best interests of the shareholders!</p>.<p>The Board normally tags along with the CEO, as amiable independent board members and the company’s shareholders are primarily concerned with the reigning share price, dividends and bonus issues. Under these circumstances, succession and employee morale evidently take a backseat.</p>.<p>Meanwhile, the CEO, whose job it is also to groom the next leader, talks of identifying next-generation employees, initiate career development programs, tries to encourage existing employees.</p>.<p>Whether organisational performance would have improved if the CEOs had passed on the baton to a younger generation after completion of their assigned terms is a moot point. Only room at the top can bring about vacancies all along the chain of command for the younger generation to fill.</p>.<p>When similar performers are rising to be CEOs of Fortune 500 companies overseas, when we have India’s public sector enterprises as a role model for succession planning, why can’t corporate watchdogs propel CEOs of professionally managed private sector companies to practise end of term self-abnegation for the organisation’s sake? Not only will this strengthen corporate performance, enable motivated, career-oriented employees but also will help more CEOs of India Inc join the growing list of global CEOs of Indian origin.</p>.<p><em>(The writer is a former director on the Board of BEML)</em></p>