Indian Firms Prioritize Leadership Continuity for Growth: Deloitte Study
Photo by Joachim Schnürle
Quick Revision
78% of Indian organizations have institutionalized formal succession management frameworks.
24% women as high-potential employees.
57% of next generation leaders step into business between the ages of 24 and 27.
Key Dates
Key Numbers
Visual Insights
Exam Angles
Impact of leadership continuity on economic growth
Role of talent management in enhancing competitiveness
Government policies promoting skill development and leadership
Challenges and opportunities in succession planning for Indian firms
View Detailed Summary
Summary
Background
Latest Developments
Practice Questions (MCQs)
1. According to Deloitte India’s Talent Readiness Study 2025, which of the following statements is/are correct regarding succession management in Indian organizations? 1. The percentage of Indian organizations with formalized succession management frameworks has increased from 72% in 2024 to 78% in 2025. 2. The study indicates a decreased focus on building resilient leadership pipelines due to economic stability. 3. Succession management frameworks are primarily adopted by multinational corporations operating in India. Select the correct answer using the code given below:
- A.1 only
- B.2 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: A
Statement 1 is correct as the study indicates an increase from 72% to 78%. Statement 2 is incorrect as the study highlights an increased focus on building resilient leadership pipelines. Statement 3 is incorrect as the study focuses on Indian organizations in general, not just MNCs.
2. In the context of corporate governance and leadership, which of the following best describes the primary objective of succession planning?
- A.To ensure that the current CEO remains in power for as long as possible.
- B.To identify and develop internal candidates to fill key leadership positions in the future.
- C.To minimize employee turnover by promoting from within, regardless of qualifications.
- D.To outsource leadership roles to external consultants for cost efficiency.
Show Answer
Answer: B
Succession planning focuses on identifying and developing internal talent to ensure a smooth transition and continuity in leadership roles. The other options are either incorrect or represent poor management practices.
3. Consider the following statements regarding the impact of effective succession planning on organizational performance: 1. It reduces uncertainty during leadership transitions. 2. It enhances employee engagement and retention. 3. It guarantees improved financial performance in all circumstances. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: A
Effective succession planning reduces uncertainty and enhances employee engagement. However, it does not guarantee improved financial performance in all circumstances, as other factors also play a significant role.
4. Which of the following factors is NOT typically considered a key element in developing a robust succession management framework?
- A.Identifying critical roles within the organization
- B.Assessing the skills and potential of current employees
- C.Implementing a performance management system
- D.Mandating that all leadership positions are filled by family members of current executives.
Show Answer
Answer: D
A robust succession management framework focuses on meritocracy and identifying the best talent, not on nepotism. Options A, B, and C are all essential components of a well-designed framework.