News: India, Inc. faces serious dearth of talented CEOs
(TNN 15/04/2006) Mumbai - The huge demand for talent means that functional heads can now aspire for a place in the CXO (which stands for CEO, CFO, CTO) suite. Companies are increasingly willing to take a chance on functional experts as future heads due to the dearth of experience.
It is now entirely possible for a person in the accounting and audit department with some functional expertise to aspire to become CFO. Lead analysts, for instance, can aspire to a fund managers position. Marketing heads in FMCG companies can become CEOs in retail or internet companies. Even journalists can aspire to be fund managers or the head of research teams at analytical BPO firms.
Even if you don’t have functional expertise and have been a jack of all trades, you still can aspire high as companies are willing to reward versatility!
Says Vikram Bhardwaj of Redileon, “Earlier we thought that the head of HR or CTO were difficult positions to fill. But we did a dip stick survey of the positions in the market lying unfulfilled and found that the whole level C-suite positions are going empty for a long period of time.”
Companies and board of directors are realising that it is not longer easy or even possible in the Indian economy to poach a CEO, CFO, CTO or head of HR from a rival company in the same industry. They need to look at other industries and even functional heads for candidates, Mr Bhardwaj adds.
“Companies have to start looking at lateral displacements and be a little more creative in filling up position. If they can’t get a CFO, maybe they should stop looking for CFOs of other companies, but start offering the position to people who have the skill sets but may not have the designation currently,” says Sandeep Surana at Executive Access.
Some companies are willing to adapt to this lateral placement concept. “This change or flexibility does not come easily and is on its own. After companies try potential candidates in rival companies or even other industries and candidates refuse to move, as the new job is the same as their current one, companies realise the futility of the exercise and start looking for alternatives,” says another head hunter.
“It is much easier to displace a person who does not have the designation of a CFO but has the experience of managing internal and external audit. The only problem is that functional heads sometimes do not have the softer skills and at the C-level they become the ‘face’ of the company as they have to deal with investors and fund managers now,” says Mr Surana.
There are several problems in lateral placements, the most important being the person chosen not possessing a ‘boardroom presence’. The euphemism implies that the candidate should have the communication skills and personality to influence board level decisions.
Lateral displacement is also happening from other sectors like the civil services, defence services and public sector to the private sector. Even startup firms in Bangalore are hiring senior defence officials at lateral levels like CEOs and CTO.
For instance, the Santa Clara-based telecom solution company Quantaz has hired a whole team of former Air Force officers with experience in telecommunication for its Indian arm.
Some financial institutions have also started looking at senior bureaucrats for infrastructure and other funding options where mere financial expertise is not sufficient for the success of a project.
While some companies are willing to support a lateral displacement, there are some hindrances as incumbents at lower levels feel that they have been looked over. Which is why many established companies with a deep and entrenched hierarchy are unable to attract fresh talent at the lateral level, while young companies are able to do this faster.
It is now entirely possible for a person in the accounting and audit department with some functional expertise to aspire to become CFO. Lead analysts, for instance, can aspire to a fund managers position. Marketing heads in FMCG companies can become CEOs in retail or internet companies. Even journalists can aspire to be fund managers or the head of research teams at analytical BPO firms.
Even if you don’t have functional expertise and have been a jack of all trades, you still can aspire high as companies are willing to reward versatility!
Says Vikram Bhardwaj of Redileon, “Earlier we thought that the head of HR or CTO were difficult positions to fill. But we did a dip stick survey of the positions in the market lying unfulfilled and found that the whole level C-suite positions are going empty for a long period of time.”
Companies and board of directors are realising that it is not longer easy or even possible in the Indian economy to poach a CEO, CFO, CTO or head of HR from a rival company in the same industry. They need to look at other industries and even functional heads for candidates, Mr Bhardwaj adds.
“Companies have to start looking at lateral displacements and be a little more creative in filling up position. If they can’t get a CFO, maybe they should stop looking for CFOs of other companies, but start offering the position to people who have the skill sets but may not have the designation currently,” says Sandeep Surana at Executive Access.
Some companies are willing to adapt to this lateral placement concept. “This change or flexibility does not come easily and is on its own. After companies try potential candidates in rival companies or even other industries and candidates refuse to move, as the new job is the same as their current one, companies realise the futility of the exercise and start looking for alternatives,” says another head hunter.
“It is much easier to displace a person who does not have the designation of a CFO but has the experience of managing internal and external audit. The only problem is that functional heads sometimes do not have the softer skills and at the C-level they become the ‘face’ of the company as they have to deal with investors and fund managers now,” says Mr Surana.
There are several problems in lateral placements, the most important being the person chosen not possessing a ‘boardroom presence’. The euphemism implies that the candidate should have the communication skills and personality to influence board level decisions.
Lateral displacement is also happening from other sectors like the civil services, defence services and public sector to the private sector. Even startup firms in Bangalore are hiring senior defence officials at lateral levels like CEOs and CTO.
For instance, the Santa Clara-based telecom solution company Quantaz has hired a whole team of former Air Force officers with experience in telecommunication for its Indian arm.
Some financial institutions have also started looking at senior bureaucrats for infrastructure and other funding options where mere financial expertise is not sufficient for the success of a project.
While some companies are willing to support a lateral displacement, there are some hindrances as incumbents at lower levels feel that they have been looked over. Which is why many established companies with a deep and entrenched hierarchy are unable to attract fresh talent at the lateral level, while young companies are able to do this faster.
posted by InCar Group Press Room at 11:27
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