Addressing The Leadership Vacuum of a Rising India Inc.

The growth potential of India's economy, with predictions of reaching a GDP of up to $30 trillion, is widely acknowledged by economists, political leaders, and entrepreneurs. This optimism is based on factors like a growing market size, demographic advantage, and a shifting global economic focus to the East.?

However, to achieve this scale of growth, India must not only focus on infrastructure and investments but also on cultivating a robust supply of admirable leadership.

India Inc. is currently facing a severe shortage of competent leaders across various organizational levels, leading to key leaders managing multiple portfolios.

Many important positions remain understaffed, and the suitability of personnel in these roles is often inadequate. While there is a high demand for talented leaders, the reality is that quality talent is scarce. This scarcity has resulted in extended periods to fill strategic positions, driving up executive compensation due to competition for the limited talent pool. This shortage of skilled leadership hampers organizational efficiency, reduces agility, and limits growth opportunities.?

The educational institutions that feed talent into the corporate world, such as B-schools and engineering colleges, produce insufficient and sometimes questionable quality graduates. This inadequacy necessitates extensive training programs, especially in areas like leadership and problem-solving skills, for entry-level talent.?

The prevalence of mid-career executive education programs further highlights this deficiency. As the demand for skilled leaders increases manifold with a growing economy, the challenge of staffing leadership roles becomes even more pronounced. Simply increasing compensation or offering new incentives like flexible hours and remote work won't solve this problem. Such approaches might attract talent within the existing pool, but they won't address the fundamental shortage of leadership talent.?

To overcome this challenge, companies need to transform themselves into organizations that continuously learn and teach, capable of nurturing their own leaders in a sustainable and cost-effective manner, while maintaining a shared set of values and purpose.?

The Indian Armed Forces, as a highly diverse organization, offers insights into building and nurturing effective leadership across different cultures. Their approach involves prioritizing training at the highest levels of the organization, dedicating substantial time and resources to training, maintaining central units for leadership development, and designing career courses centrally.

These practices ensure consistent leadership development, foster trust, and prepare leaders for strategic roles. While businesses can't replicate all aspects of the armed forces' approach, there's a clear need for a more structured strategy to develop a leadership pipeline. This need extends not only to the companies themselves but also to their vast network of vendors.?

The COVID-19 pandemic has highlighted that while physical resources can be quickly mobilized, developing capable leaders takes years.

Thus, businesses must focus on building a well-structured leadership development framework to ensure long-term success and growth.