Team Capability India.
Know exactly where you stand.

Key-person dependency exists when critical business knowledge, relationships, or capabilities are concentrated in one or two individuals. If they leave, the capability leaves with them. For Indian SMEs, the most common key-person dependencies: founder as the only salesperson, one person who understands the entire ERP/accounting system, a single engineer who knows the product or manufacturing process. Investors and acquirers apply a 20–40% valuation discount for businesses with high key-person dependency.

Building leadership depth: (1) Identify the 3–5 decisions that only you (the founder) can currently make — and systematically delegate them to a second-level leader over 6–12 months; (2) Create a management team (not just department heads) that meets weekly and makes operational decisions collectively; (3) Document institutional knowledge — customer relationships, supplier terms, process knowledge — so it is captured in the organisation, not individual heads; (4) Invest in external leadership development for your top 3–5 managers.

A succession plan identifies who would fill each critical role if the current holder left suddenly. For Indian SMEs, minimum succession planning covers: (1) Who runs the business if the founder is unavailable for 4+ weeks? (2) Who manages the top 3 customer relationships if the relationship owner leaves? (3) Who can perform each technical specialisation if the specialist leaves? The plan does not require having a named internal successor for every role — it can include external hiring timelines for roles where internal succession is not possible.

Benchmark attrition rates by sector for Indian businesses: IT services 15–25% annually (high is normal but above 30% is a problem); manufacturing 10–18%; professional services 12–20%; retail and consumer 25–40%. Attrition above benchmark signals: below-market compensation, poor management quality, culture issues, or limited growth opportunities. The true cost of attrition for an Indian SME: 50–150% of the departing employee's annual compensation when you include recruitment, onboarding, and productivity ramp-up costs.