THE CASE: The Leadership Vacuum
Suresh is CEO of a 400-person manufacturing company. When his VP of Operations resigned, he looked internally—no one was ready. He hired externally—took 6 months and cost ₹50L+. The new hire lasted 8 months before leaving. He realized: He had no leadership bench.
DDI research shows that only 14% of CEOs are confident in their leadership pipeline. Leadership development happens over years, not weeks. If you start when you need someone, you're already too late.
The Evidence
Only 14% of CEOs confident in pipeline (DDI)
6-12 months average to fill executive roles (Spencer Stuart)
Internal hires perform 20% better (LinkedIn)
50% higher financial returns with strong bench (Deloitte)
The Bench Strength Framework
Step 1: Identify Critical Roles (60 minutes)
Which 5-10 roles would cause the most damage if suddenly vacant? Map each role's successor: Ready Now, Ready in 1-2 Years, or No Successor.
Step 2: Assess High-Potentials (90 minutes)
Who are your 10-15 high-potential employees? Assess them on: Performance (consistent high deliverables), Potential (ability to handle greater complexity), Aspiration (desire for leadership), and Engagement (commitment to stay).
Step 3: Create Development Plans (60 minutes each)
For each high-potential, create a 12-month development plan: Stretch assignments, mentorship pairings, training investments, and cross-functional exposure.
Step 4: Regular Talent Reviews (Quarterly)
Every quarter, review your bench: Who's ready for promotion? Who needs more development? Who's at flight risk? Who do we need to recruit externally?
The Experiment: "Acting Leadership" Program
When leaders take vacation or leave, assign high-potentials to act in their role for 1-2 weeks. No safety net—they make real decisions. Expected outcome: Accelerated readiness and real-world leadership testing.
Sources & References
- DDI. Global Leadership Forecast. 2023.
- Collins, Jim. Good to Great. HarperBusiness, 2001.
- Charan, Ram. The Leadership Pipeline. Jossey-Bass, 2011.
Key Takeaways
- Leadership development takes years—start before you need someone
- Identify critical roles and assess current bench strength
- Create development plans for high-potentials with stretch assignments
- Quarterly talent reviews keep the pipeline visible