The role of a company’s promoter is starting to include helping in drawing up leadership succession plans and generally evaluating the talent of a CEO.
This practice, according to management guru and consultant extraordinaire Ram Charan, has picked up in countries such as the U.S. with a few Indian companies following suit.
Mr. Charan has spent the last 30 years in working with the CEOs of top companies, including GE, Bank of America, Verizon and the Aditya Birla Group.
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“One cannot generalise [about Indian companies] of course. But it is slowly happening…promoters are making changes at the top level. The average tenure of a CEO now is just 4.6 years, with a great proportion below three years,” he said, while addressing reporters after delivering a speech at Great Lakes Institute of Management on Wednesday.