In an era defined by accelerating disruption and escalating business complexity, the issue of CEO succession has ascended to the top of the agenda for corporate boards globally, and particularly in India. A new comprehensive study by leadership search and consulting firm Korn Ferry reveals that board chairs are increasingly viewing CEO succession as their most critical responsibility, demanding a proactive, long-term, and strategic approach.

The report, based on in-depth interviews with 188 board chairs across 33 countries (including 20 in India, representing over 800 boards), found that an overwhelming 83% of respondents consider getting CEO succession right as paramount. This heightened focus signifies a fundamental shift from succession planning as a reactive exercise to a strategic imperative that requires continuous attention and foresight.

Harsh Mariwala, Non-Executive Chair of Marico, a prominent Indian conglomerate, underscored this sentiment in the report: "The process of evaluating and identifying the next CEO is a dynamic journey that can take up to two years — and rightly so, because this is the single most important decision a Board will make. If the Board needs to spend significant time on anything, it should be this."

The study highlights that boards are recognizing that the challenges facing businesses today are unprecedented. These include rapid technological advancements like AI, increasing geopolitical uncertainties, environmental pressures, and dynamic market shifts. Navigating such a turbulent environment demands a leader with a unique blend of skills, resilience, and vision. Consequently, boards are not just looking for a replacement but for a transformational leader who can steer the company through future complexities.

Key findings from the global study also emphasized:

• Building High-Trust Boards: Soft values such as trust, inclusion, and open communication are considered "non-negotiable" for effective board performance, with nearly 67% of chairs identifying these as critical enablers.
• Diversity of Skills and Experience: Boards are increasingly seeking a wider range of skills and experiences, including digital fluency, cultural alignment, and transformational leadership experience, to ensure they have the collective expertise to address emerging challenges. As Shailesh Haribhakti, an independent director on several top Indian boards, noted, "Diversity isn't just about who's on the board—it's about knowing what skill we're missing, where to find it, and who can help us access that talent and insight.”
• Enhanced Risk Management: Risk management and preparedness are now foundational pillars for every board. The study warned that "The risks we face aren't just financial; they're geopolitical, environmental, and operational. Boards that fail to prepare for these complexities are setting themselves up for serious consequences down the line."
• Technological Readiness: Boards must enhance their understanding of AI, data governance, and cybersecurity to stay strategically aligned with the rapid technological shifts reshaping every facet of business.

The shift towards proactive CEO succession is particularly pertinent in India, where many homegrown corporate success stories, particularly family-managed businesses, are navigating leadership transitions amidst intensified competition and evolving governance standards. The report suggests that a structured, ongoing succession plan, looking several years ahead, is now standard practice for high-performing boards. This involves continuous evaluation of internal candidates, external benchmarking, and robust development programs to groom future leaders.

In conclusion, the Korn Ferry report serves as a powerful call to action for boards worldwide. In an age of relentless disruption, a well-defined and continuously updated CEO succession strategy is no longer a luxury but a critical component of long-term organizational resilience and sustained performance.