The story of a botched succession

Description

When transfer of managerial authority is not accompanied by ownership change, the predecessor continues to call the shots. In all the excitement generated by the recent events in the Tata group, where the chairman was replaced by his predecessor albeit as an interim measure the real issue has gone into hiding. A substantial focus of the discussions and comments from the press, observers and experts has been on procedures and personalities. Whether the incumbent chairman was given adequate notice about his removal and whether he was given a chance to argue his case are no doubt relevant questions to assess the fairness of the decision. But these questions speak to the procedural issues surrounding corporate governance. The other widely discussed question is about the differing perspectives and the positions taken by the incumbent and the predecessor. But if one were to seriously search for the root cause of this issue, it is possible to recognise the elephant in the room ineffective succession planning and implementation. Read more at: https://www.thehindubusinessline.com/opinion/the-story-of-a-botched-succession/article9306204.ece

Publication Date

4-11-2016

Publication Title

The Hindu Business Line

Publisher

THG Publishing Pvt. Ltd.

Keywords

Ownership, Governance, Family business

Source Link URL

https://www.thehindubusinessline.com/opinion/the-story-of-a-botched-succession/article9306204.ece

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