Quick maturing

A study by an international executive search firm says that the average age of India Inc's top leadership is coming down, and has dropped by as much as nine years in the last five years. While a younger age profile for Corporate India is not new, and is only to be expected, what is interesting is that it is now manifesting itself so decisively in leadership positions. However, the picture varies across sectors. NextGen is getting its head in areas like technology, software, outsourcing, and financial services""all relatively new areas where there are no old hands around. In manufacturing, by way of contrast, the older generation still holds the leadership levers.

There are many ways to explain these trends. Most obviously, a growing economy will throw up greater demand for top management, and of necessity this will be met from the younger ranks. Second, the people in the boom sectors of the new economy have a younger age profile and it is therefore only natural that leadership positions will be taken up by younger CEOs. Third, diversifications by family-run businesses are to a significant extent into the new economy, where these are spearheaded by the young scions of these groups. Fourth, with the country's economy being increasingly integrated with the global economy, many of these young CEOs are those who have studied overseas and are returning to India because of the opportunities it now offers. This is also recognition of India as an investment and workplace destination for managers across the world. There is a growing proportion of expat talent, Indian and foreign, in the ranks of new leaders. Finally, as the latest round of B-school placements has shown, with a large number of people opting for mid-career MBAs after a few years of work experience, many of them when they return to industry are doing so at or near the top.

Managing a younger leadership comes with its share of challenges for companies as well as for the young CEOs themselves. For corporations, the issues of compensation, training, future hiring and workforce profile will have to be managed. A younger CEO and workforce also throw up new cultural conflicts. In many BPO and ITeS firms, the overall age profile is young, so a young CEO does not face challenges of integrating with the old guard. But when young leaders take charge of firms where there is an existing older workforce, the challenges are more complex""for the vision and growth urges of a young leadership are different from those of an older generation. This could create friction and vision mismatch in the organisation. For the young CEOs themselves, being on the fast track can mean premature burn-out, or even a quick fade-out, as happened when the Internet boom went bust at the turn of the century.