PROMOTING THE PROTÉGÉ 

The   die   was   cast.     Prem   Nath   Divan,   executive   chairman   of   Vertigo,   the 
country’s largest engineering project organization, decided to switch tracks 
for a career in academics.   Divan was still six years short of the company’s 
retirement age of 65.  His premature exit was bound to create a flutter at the 
Vertigo board.   Having joined Vertigo as a management trainee soon after 
college, he had gradually risen through the hierarchy to take a board position 
as the marketing director of the firm at 32.  He had become the president five 
years later and the youngest chairman of the company at 45.  But, by the time 
he was 50, the whiz kid had acquired a larger than life image of a role model 
for   younger   managers   and   a   statesman   who   symbolized   the   best   and 
brightest face of Indian management. 
On his wife’s suggestion that it would be wise to discuss the move with 
one  of his trusted colleagues before making a formal announcement of his 
intention to seek premature retirement, Divan called on Ramcharan Saxena, 
a solicitor who has been on the Vertigo board for over a decade. Sexena was 
surprised at Divan’s plan.  But he was unfazed.  “If that is what you want to 
do for the rest of your life, we can only wish you well”, he told him.   “The 
board will 

miss you. But the business should go on.  We should get down to the task of 
choosing a successor.  The sooner it is done, the better. 
“I think the choice is quite obvious, “said Divan, “Ranjan Warrior. He is 
good and …” Divan was taken aback to see Saxena grimace.  “You don’t have 
anything against him, do you?” he asks him. “No, no,” said Saxena, “He is 
good.     A   financial   strategist   and   a   visionary.     His   conceptual   skills   have 
served   the   company   well.     But   he   has   always   had   staff   role   with   no   line 
experience.     What   we   need   is   someone   from   operations.     Like   Richard 
Crasta.”  
“Richard known things inside out alright”, said Divan, “But he is just a 
doer.  Not fire in the belly.  Vertigo needs someone who understands the value 
of power and known how to use it.  Like me.  Like Ranjan.” 
“That   is   just   the   problem,   “said   Saxena.   “Prem,   let   me   tell   you 
something. Ranjan is a man in your own image. Everyone known that he is 
your protégé.  And are never popular.  He has generated a lot of resentment 
among senior Veritigo executives and there would be a revolt if he were to 
succeed you.   An exodus is something we can’t afford to have on our hands. 
We   should   think   of   someone   else   in   the   interest   of   stability   to   top 
management.” 
Divan could not believe what he heard.  He had always prided himself 
on his hands – on style and thought he had his ear to the ground. “How could 
I lose touch?”  He wondered, somewhat shaken. 
“When   you   are   the   boss,   people   accept   your   authority   without 
question,”   continued   Saxena.   “In   any   case,   you   have   been   successful   at 
Vertigo   and   it   is   difficult   to   argue   with   success.     But   the   moment   you 
announce   your   intention   to   leave,   the   aura   begins   to   fade   away.     And   in 
deciding on your successor, the board will seek your opinion, with due regard 
to your judgment.  The board member must do what in their view is right for 
the   company.     Having   said   that,   may   I   also   mention   that   if   there   is   a 
showdown in the boardroom, you could always choose to stay on? We would 
like it.  Or we could bring in an outsider.” 

“I have finalised my career plans and there is no question of staying on 
beyond six months from now,” said Divan.   “The board is scheduled to meet 
next month.  Let us shelve the matter till then.  In the meantime, I rely on 
you, Ram, to keep this discussion between the two of us.”
“Of course yes,” said Saxena.
On his way home, Divan thought about the matter in detail.  Bringing 
an   outsider   would   undo   all   his   life’s   work   at   Vertigo.     There   were 
considerations   like   cuture   and   compatibility   which   were   paramount.     The 
chairman had to be an inside man.   “Richard lacks stature, “Divan said to 
himself. “Ranjan is the one I have been grooming, but heavens, the flip side of 
it all had missed me completely.  There is no way I can allow a split at the top 
just before I quit.  I must leave on a high note in my own interest.  I must find 
a way out of he imminent mess.” 

Question: 

1.  What should Divan do? 

Situation: Prem Nath Divan has decided to retire six years earlier that the company's retirement
age of 65. Divan must decide upon his successor before he leaves. He has a personal discussion
with one of his trusted colleagues called Ramcharan Saxena.

Qualifying successors:
1) Ranjan Warrior (Suggested by Divan)
2) Richard Crasta (Suggested by Saxena)
3) An outsider (An option)

INPUTS:
1) Ranjan Warrior:
Divan like him.
Ranjan is a Divan's Protege that means basically Ranjan is a doer.
Ranjan is relys on Divan for every thing he does. That mean Ranjan will also be obidient to Divan.
Divan will not be in the company to control Ranjan
Ranjan is not liked by most of the senior executive to the extent that there could be a revolt if he
becomes a successor and Saxena knows about it.
Seniors may leave the company if Ranjan becomes a sucessor.
Divan will earn a bad reputation if he decides to choose Ranjan as his sucessor.

2) Richard Crasta:
Richard is a doer just like Ranjan is(Divan's Protege).
There is no reported hostility between Richard and the senior executive.
Richard should be accepted by the employees as the successor of Divan.
Divan does not think Richard is suitable to become his successor
Saxena is in favor of Richard becoming Divan's successor.
3) Outsider:
An outsider as Divan's successor would be risky.
An outsider could be good or bad.
Divan cant be sure of an outsider
Saxena cant be sure of an outsider
Outsider will be readily accepted as Divan's successor by all the employees

Analysis:
Ranjan and Richard, both are doers. An outsider is not known.
An outsider or Richard are more likely to be accepted than Ranjan as Divan's successor by the
company's employees.
Saxena is in favor of Richard but can not be sure of an outsider
Divan is not in favor of Ranjan after knowing about him and he is also not in favor of an outsider.

Conclusion:
According to my analysis, Richard Crasta should be the successor of Prem Nath Divan.

Solution:
Divan should choose to make Richard Crasta as his successor.