diff --git a/Makefile b/Makefile
index 360571bf29..9922ea16c8 100644
--- a/Makefile
+++ b/Makefile
@@ -9,6 +9,10 @@ PLATFORMS ?= linux_amd64 linux_arm64
 CODE_GENERATOR_COMMIT ?= cac5654b7bb64c8f754ad9af01799ef70d9541b6
 GENERATED_SERVICES="apigatewayv2,cloudfront,dynamodb,efs,kms,lambda,rds,secretsmanager,servicediscovery,sfn"
 
+# kind-related versions
+KIND_VERSION ?= v0.11.1
+KIND_NODE_IMAGE_TAG ?= v1.19.11
+
 # -include will silently skip missing files, which allows us
 # to load those files with a target in the Makefile. If only
 # "include" was used, the make command would fail and refuse
@@ -89,7 +93,7 @@ e2e.run: test-integration
 # Run integration tests.
 test-integration: $(KIND) $(KUBECTL) $(HELM3)
 	@$(INFO) running integration tests using kind $(KIND_VERSION)
-	@$(ROOT_DIR)/cluster/local/integration_tests.sh || $(FAIL)
+	@KIND_NODE_IMAGE_TAG=${KIND_NODE_IMAGE_TAG} $(ROOT_DIR)/cluster/local/integration_tests.sh || $(FAIL)
 	@$(OK) integration tests passed
 
 # Update the submodules, such as the common build scripts.
diff --git a/cluster/local/integration_tests.sh b/cluster/local/integration_tests.sh
index 84cc87304c..7e84c8c7f3 100755
--- a/cluster/local/integration_tests.sh
+++ b/cluster/local/integration_tests.sh
@@ -71,7 +71,8 @@ echo "created cache dir at ${CACHE_PATH}"
 docker save "${BUILD_IMAGE}" -o "${CACHE_PATH}/${PACKAGE_NAME}.xpkg" && chmod 644 "${CACHE_PATH}/${PACKAGE_NAME}.xpkg"
 
 # create kind cluster with extra mounts
-echo_step "creating k8s cluster using kind"
+KIND_NODE_IMAGE="kindest/node:${KIND_NODE_IMAGE_TAG}"
+echo_step "creating k8s cluster using kind ${KIND_VERSION} and node image ${KIND_NODE_IMAGE}"
 KIND_CONFIG="$( cat <<EOF
 kind: Cluster
 apiVersion: kind.x-k8s.io/v1alpha4
@@ -82,7 +83,7 @@ nodes:
     containerPath: /cache
 EOF
 )"
-echo "${KIND_CONFIG}" | "${KIND}" create cluster --name="${K8S_CLUSTER}" --wait=5m --config=-
+echo "${KIND_CONFIG}" | "${KIND}" create cluster --name="${K8S_CLUSTER}" --wait=5m --image="${KIND_NODE_IMAGE}" --config=-
 
 # tag controller image and load it into kind cluster
 docker tag "${CONTROLLER_IMAGE}" "${PACKAGE_CONTROLLER_IMAGE}"
diff --git a/go.mod b/go.mod
index a3441f5a05..98700dedb1 100644
--- a/go.mod
+++ b/go.mod
@@ -5,7 +5,7 @@ go 1.16
 require (
 	github.com/aws/aws-sdk-go v1.37.4
 	github.com/aws/aws-sdk-go-v2 v0.23.0
-	github.com/crossplane/crossplane-runtime v0.14.0
+	github.com/crossplane/crossplane-runtime v0.14.1
 	github.com/crossplane/crossplane-tools v0.0.0-20210320162312-1baca298c527
 	github.com/evanphx/json-patch v4.9.0+incompatible
 	github.com/go-ini/ini v1.46.0
diff --git a/go.sum b/go.sum
index c7efee3b76..5761ac39c7 100644
--- a/go.sum
+++ b/go.sum
@@ -107,8 +107,8 @@ github.com/cpuguy83/go-md2man v1.0.10/go.mod h1:SmD6nW6nTyfqj6ABTjUi3V3JVMnlJmwc
 github.com/cpuguy83/go-md2man/v2 v2.0.0/go.mod h1:maD7wRr/U5Z6m/iR4s+kqSMx2CaBsrgA7czyZG/E6dU=
 github.com/creack/pty v1.1.7/go.mod h1:lj5s0c3V2DBrqTV7llrYr5NG6My20zk30Fl46Y7DoTY=
 github.com/creack/pty v1.1.9/go.mod h1:oKZEueFk5CKHvIhNR5MUki03XCEU+Q6VDXinZuGJ33E=
-github.com/crossplane/crossplane-runtime v0.14.0 h1:alBvQAwg9wJ88wEBnzyzmlN0N/v1W3Jx4OvBX3Fmrkg=
-github.com/crossplane/crossplane-runtime v0.14.0/go.mod h1:Bc54/KBvV9ld/tvervcnhcSzk13FYguTqmYt72Mybps=
+github.com/crossplane/crossplane-runtime v0.14.1 h1:bCPC7vKHWuhHTX22f/zfkxMcIjKd4/gZ5MjFAnLQzAI=
+github.com/crossplane/crossplane-runtime v0.14.1/go.mod h1:Bc54/KBvV9ld/tvervcnhcSzk13FYguTqmYt72Mybps=
 github.com/crossplane/crossplane-tools v0.0.0-20210320162312-1baca298c527 h1:9M6hMLKqjxtL9d9nwfcaAt59Ey0CPfSXQ3iIdYRUNaE=
 github.com/crossplane/crossplane-tools v0.0.0-20210320162312-1baca298c527/go.mod h1:C735A9X0x0lR8iGVOOxb49Mt70Ua4EM2b7PGaRPBLd4=
 github.com/dave/jennifer v1.3.0 h1:p3tl41zjjCZTNBytMwrUuiAnherNUZktlhPTKoF/sEk=
diff --git a/pkg/controller/acm/controller.go b/pkg/controller/acm/controller.go
index 086a302641..9c74637752 100644
--- a/pkg/controller/acm/controller.go
+++ b/pkg/controller/acm/controller.go
@@ -163,7 +163,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 		return managed.ExternalCreation{}, awsclient.Wrap(err, errCreate)
 	}
 	meta.SetExternalName(cr, aws.StringValue(response.RequestCertificateOutput.CertificateArn))
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 
 }
 
diff --git a/pkg/controller/acm/controller_test.go b/pkg/controller/acm/controller_test.go
index c7a3606b43..6b59499c90 100644
--- a/pkg/controller/acm/controller_test.go
+++ b/pkg/controller/acm/controller_test.go
@@ -248,7 +248,7 @@ func TestCreate(t *testing.T) {
 			want: want{
 				cr: certificate(
 					withDomainName()),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"InValidInput": {
diff --git a/pkg/controller/acmpca/certificateauthority/controller.go b/pkg/controller/acmpca/certificateauthority/controller.go
index 2eaad19dc4..a04879207d 100644
--- a/pkg/controller/acmpca/certificateauthority/controller.go
+++ b/pkg/controller/acmpca/certificateauthority/controller.go
@@ -165,7 +165,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 		return managed.ExternalCreation{}, awsclient.Wrap(err, errCreate)
 	}
 	meta.SetExternalName(cr, aws.StringValue(response.CreateCertificateAuthorityOutput.CertificateAuthorityArn))
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 
 }
 
diff --git a/pkg/controller/acmpca/certificateauthority/controller_test.go b/pkg/controller/acmpca/certificateauthority/controller_test.go
index daeae23c40..c1ea196c1f 100644
--- a/pkg/controller/acmpca/certificateauthority/controller_test.go
+++ b/pkg/controller/acmpca/certificateauthority/controller_test.go
@@ -263,7 +263,7 @@ func TestCreate(t *testing.T) {
 			},
 			want: want{
 				cr:     certificateAuthority(withCertificateAuthorityArn()),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"InValidInput": {
diff --git a/pkg/controller/acmpca/certificateauthoritypermission/controller.go b/pkg/controller/acmpca/certificateauthoritypermission/controller.go
index 74c9432234..4a3501698a 100644
--- a/pkg/controller/acmpca/certificateauthoritypermission/controller.go
+++ b/pkg/controller/acmpca/certificateauthoritypermission/controller.go
@@ -155,7 +155,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 	// identity of the CA it applies to, and the principal it applies.
 	meta.SetExternalName(cr, cr.Spec.ForProvider.Principal+"/"+awsclient.StringValue(cr.Spec.ForProvider.CertificateAuthorityARN))
 
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 
 }
 
diff --git a/pkg/controller/acmpca/certificateauthoritypermission/controller_test.go b/pkg/controller/acmpca/certificateauthoritypermission/controller_test.go
index 81f8215089..72c00b8fec 100644
--- a/pkg/controller/acmpca/certificateauthoritypermission/controller_test.go
+++ b/pkg/controller/acmpca/certificateauthoritypermission/controller_test.go
@@ -210,7 +210,7 @@ func TestCreate(t *testing.T) {
 					withPrincipal(principal),
 					withCertificateAuthorityARN(arn),
 					withExternalName(principal+"/"+arn)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"InValidInput": {
diff --git a/pkg/controller/apigatewayv2/api/setup.go b/pkg/controller/apigatewayv2/api/setup.go
index a14a62a062..3b943f55b3 100644
--- a/pkg/controller/apigatewayv2/api/setup.go
+++ b/pkg/controller/apigatewayv2/api/setup.go
@@ -79,7 +79,6 @@ func postCreate(_ context.Context, cr *svcapitypes.API, resp *svcsdk.CreateApiOu
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.ApiId))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/apigatewayv2/apimapping/setup.go b/pkg/controller/apigatewayv2/apimapping/setup.go
index 696d5f1755..9afd5c4bcc 100644
--- a/pkg/controller/apigatewayv2/apimapping/setup.go
+++ b/pkg/controller/apigatewayv2/apimapping/setup.go
@@ -88,7 +88,6 @@ func postCreate(_ context.Context, cr *svcapitypes.APIMapping, resp *svcsdk.Crea
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.ApiMappingId))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/apigatewayv2/authorizer/setup.go b/pkg/controller/apigatewayv2/authorizer/setup.go
index 9ef37107d1..44521172e8 100644
--- a/pkg/controller/apigatewayv2/authorizer/setup.go
+++ b/pkg/controller/apigatewayv2/authorizer/setup.go
@@ -86,7 +86,6 @@ func postCreate(_ context.Context, cr *svcapitypes.Authorizer, resp *svcsdk.Crea
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.AuthorizerId))
-	cre.ExternalNameAssigned = true
 	return cre, err
 }
 
diff --git a/pkg/controller/apigatewayv2/deployment/setup.go b/pkg/controller/apigatewayv2/deployment/setup.go
index aef82cf55e..bc182b7ed6 100644
--- a/pkg/controller/apigatewayv2/deployment/setup.go
+++ b/pkg/controller/apigatewayv2/deployment/setup.go
@@ -86,7 +86,6 @@ func postCreate(_ context.Context, cr *svcapitypes.Deployment, resp *svcsdk.Crea
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.DeploymentId))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/apigatewayv2/integration/setup.go b/pkg/controller/apigatewayv2/integration/setup.go
index 9c8a75506d..255ad519c4 100644
--- a/pkg/controller/apigatewayv2/integration/setup.go
+++ b/pkg/controller/apigatewayv2/integration/setup.go
@@ -98,7 +98,6 @@ func postCreate(_ context.Context, cr *svcapitypes.Integration, resp *svcsdk.Cre
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.IntegrationId))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/apigatewayv2/integrationresponse/setup.go b/pkg/controller/apigatewayv2/integrationresponse/setup.go
index c4ff034ac7..fd2cd03661 100644
--- a/pkg/controller/apigatewayv2/integrationresponse/setup.go
+++ b/pkg/controller/apigatewayv2/integrationresponse/setup.go
@@ -86,7 +86,6 @@ func postCreate(_ context.Context, cr *svcapitypes.IntegrationResponse, resp *sv
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.IntegrationResponseId))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/apigatewayv2/model/setup.go b/pkg/controller/apigatewayv2/model/setup.go
index 6ddd4b279b..a8566e8469 100644
--- a/pkg/controller/apigatewayv2/model/setup.go
+++ b/pkg/controller/apigatewayv2/model/setup.go
@@ -86,7 +86,6 @@ func postCreate(_ context.Context, cr *svcapitypes.Model, resp *svcsdk.CreateMod
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.ModelId))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/apigatewayv2/route/setup.go b/pkg/controller/apigatewayv2/route/setup.go
index 2b19a22ee3..ad830d3b67 100644
--- a/pkg/controller/apigatewayv2/route/setup.go
+++ b/pkg/controller/apigatewayv2/route/setup.go
@@ -88,7 +88,6 @@ func postCreate(_ context.Context, cr *svcapitypes.Route, res *svcsdk.CreateRout
 	// NOTE(muvaf): Route ID is chosen as external name since it's the only unique
 	// identifier.
 	meta.SetExternalName(cr, aws.StringValue(res.RouteId))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/apigatewayv2/routeresponse/setup.go b/pkg/controller/apigatewayv2/routeresponse/setup.go
index d9053fc25e..86fb6cd956 100644
--- a/pkg/controller/apigatewayv2/routeresponse/setup.go
+++ b/pkg/controller/apigatewayv2/routeresponse/setup.go
@@ -88,7 +88,6 @@ func postCreate(_ context.Context, cr *svcapitypes.RouteResponse, resp *svcsdk.C
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.RouteResponseId))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/apigatewayv2/vpclink/setup.go b/pkg/controller/apigatewayv2/vpclink/setup.go
index c0ef8f882b..4cb3681635 100644
--- a/pkg/controller/apigatewayv2/vpclink/setup.go
+++ b/pkg/controller/apigatewayv2/vpclink/setup.go
@@ -92,7 +92,6 @@ func postCreate(_ context.Context, cr *svcapitypes.VPCLink, resp *svcsdk.CreateV
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.VpcLinkId))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/cloudfront/distribution/setup.go b/pkg/controller/cloudfront/distribution/setup.go
index 878e76d7a6..0ebb678fa5 100644
--- a/pkg/controller/cloudfront/distribution/setup.go
+++ b/pkg/controller/cloudfront/distribution/setup.go
@@ -93,7 +93,6 @@ func postCreate(_ context.Context, cr *svcapitypes.Distribution, cdo *svcsdk.Cre
 	}
 
 	meta.SetExternalName(cr, awsclients.StringValue(cdo.Distribution.Id))
-	ec.ExternalNameAssigned = true
 	return ec, nil
 }
 
diff --git a/pkg/controller/dynamodb/backup/hooks.go b/pkg/controller/dynamodb/backup/hooks.go
index 798c6df5d2..c3e26f46f7 100644
--- a/pkg/controller/dynamodb/backup/hooks.go
+++ b/pkg/controller/dynamodb/backup/hooks.go
@@ -92,7 +92,6 @@ func postCreate(_ context.Context, cr *svcapitypes.Backup, resp *svcsdk.CreateBa
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.BackupDetails.BackupArn))
-	cre.ExternalNameAssigned = true
 	return cre, err
 }
 
diff --git a/pkg/controller/ec2/address/controller.go b/pkg/controller/ec2/address/controller.go
index a6b7293e99..6981cbf2ef 100644
--- a/pkg/controller/ec2/address/controller.go
+++ b/pkg/controller/ec2/address/controller.go
@@ -19,6 +19,7 @@ package address
 import (
 	"context"
 	"sort"
+	"time"
 
 	"github.com/aws/aws-sdk-go-v2/aws"
 	awsec2 "github.com/aws/aws-sdk-go-v2/service/ec2"
@@ -66,6 +67,7 @@ func SetupAddress(mgr ctrl.Manager, l logging.Logger, rl workqueue.RateLimiter)
 		Complete(managed.NewReconciler(mgr,
 			resource.ManagedKind(v1beta1.AddressGroupVersionKind),
 			managed.WithExternalConnecter(&connector{kube: mgr.GetClient()}),
+			managed.WithCreationGracePeriod(3*time.Minute),
 			managed.WithReferenceResolver(managed.NewAPISimpleReferenceResolver(mgr.GetClient())),
 			managed.WithConnectionPublishers(),
 			managed.WithInitializers(managed.NewDefaultProviderConfig(mgr.GetClient()), &tagger{kube: mgr.GetClient()}),
@@ -174,7 +176,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 	} else {
 		meta.SetExternalName(cr, aws.StringValue(result.AllocateAddressOutput.AllocationId))
 	}
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/ec2/address/controller_test.go b/pkg/controller/ec2/address/controller_test.go
index 5bfc603d3b..fd6cc6fec6 100644
--- a/pkg/controller/ec2/address/controller_test.go
+++ b/pkg/controller/ec2/address/controller_test.go
@@ -237,7 +237,7 @@ func TestCreate(t *testing.T) {
 			want: want{
 				cr: address(withExternalName(allocationID),
 					withConditions(xpv1.Creating())),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"SuccessfulStandard": {
@@ -265,7 +265,7 @@ func TestCreate(t *testing.T) {
 					withSpec(v1beta1.AddressParameters{
 						Domain: &domainStandard,
 					})),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"CreateFail": {
diff --git a/pkg/controller/ec2/internetgateway/controller.go b/pkg/controller/ec2/internetgateway/controller.go
index 2096237344..51daa932fc 100644
--- a/pkg/controller/ec2/internetgateway/controller.go
+++ b/pkg/controller/ec2/internetgateway/controller.go
@@ -18,6 +18,7 @@ package internetgateway
 
 import (
 	"context"
+	"time"
 
 	"github.com/aws/aws-sdk-go-v2/aws"
 	awsec2 "github.com/aws/aws-sdk-go-v2/service/ec2"
@@ -67,6 +68,7 @@ func SetupInternetGateway(mgr ctrl.Manager, l logging.Logger, rl workqueue.RateL
 		Complete(managed.NewReconciler(mgr,
 			resource.ManagedKind(v1beta1.InternetGatewayGroupVersionKind),
 			managed.WithExternalConnecter(&connector{kube: mgr.GetClient(), newClientFn: ec2.NewInternetGatewayClient}),
+			managed.WithCreationGracePeriod(3*time.Minute),
 			managed.WithReferenceResolver(managed.NewAPISimpleReferenceResolver(mgr.GetClient())),
 			managed.WithInitializers(managed.NewDefaultProviderConfig(mgr.GetClient())),
 			managed.WithConnectionPublishers(),
@@ -154,7 +156,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 
 	meta.SetExternalName(cr, aws.StringValue(ig.InternetGateway.InternetGatewayId))
 
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/ec2/internetgateway/controller_test.go b/pkg/controller/ec2/internetgateway/controller_test.go
index ddceb1a5de..c519ae4ae0 100644
--- a/pkg/controller/ec2/internetgateway/controller_test.go
+++ b/pkg/controller/ec2/internetgateway/controller_test.go
@@ -262,7 +262,7 @@ func TestCreate(t *testing.T) {
 				}),
 					withExternalName(igID),
 					withConditions(xpv1.Creating())),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"FailedRequest": {
diff --git a/pkg/controller/ec2/natgateway/controller.go b/pkg/controller/ec2/natgateway/controller.go
index e3f508e66a..d3026f2fb8 100644
--- a/pkg/controller/ec2/natgateway/controller.go
+++ b/pkg/controller/ec2/natgateway/controller.go
@@ -2,6 +2,7 @@ package natgateway
 
 import (
 	"context"
+	"time"
 
 	"github.com/aws/aws-sdk-go-v2/aws"
 	awsec2 "github.com/aws/aws-sdk-go-v2/service/ec2"
@@ -47,6 +48,7 @@ func SetupNatGateway(mgr ctrl.Manager, l logging.Logger, rl workqueue.RateLimite
 		Complete(managed.NewReconciler(mgr,
 			resource.ManagedKind(v1beta1.NATGatewayGroupVersionKind),
 			managed.WithExternalConnecter(&connector{kube: mgr.GetClient(), newClientFn: ec2.NewNatGatewayClient}),
+			managed.WithCreationGracePeriod(3*time.Minute),
 			managed.WithReferenceResolver(managed.NewAPISimpleReferenceResolver(mgr.GetClient())),
 			managed.WithInitializers(managed.NewDefaultProviderConfig(mgr.GetClient())),
 			managed.WithConnectionPublishers(),
@@ -145,7 +147,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 		return managed.ExternalCreation{}, awsclient.Wrap(err, errCreate)
 	}
 	meta.SetExternalName(cr, aws.StringValue(nat.NatGateway.NatGatewayId))
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/ec2/natgateway/controller_test.go b/pkg/controller/ec2/natgateway/controller_test.go
index ff851cfc99..c3d3e0440b 100644
--- a/pkg/controller/ec2/natgateway/controller_test.go
+++ b/pkg/controller/ec2/natgateway/controller_test.go
@@ -469,7 +469,7 @@ func TestCreate(t *testing.T) {
 				cr: nat(withExternalName(natGatewayID),
 					withSpec(specNatSpec()),
 				),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"FailedRequest": {
diff --git a/pkg/controller/ec2/routetable/controller.go b/pkg/controller/ec2/routetable/controller.go
index 4aedc52648..e3e34f87e8 100644
--- a/pkg/controller/ec2/routetable/controller.go
+++ b/pkg/controller/ec2/routetable/controller.go
@@ -18,6 +18,7 @@ package routetable
 
 import (
 	"context"
+	"time"
 
 	"github.com/aws/aws-sdk-go-v2/aws"
 	awsec2 "github.com/aws/aws-sdk-go-v2/service/ec2"
@@ -71,6 +72,7 @@ func SetupRouteTable(mgr ctrl.Manager, l logging.Logger, rl workqueue.RateLimite
 		Complete(managed.NewReconciler(mgr,
 			resource.ManagedKind(v1beta1.RouteTableGroupVersionKind),
 			managed.WithExternalConnecter(&connector{kube: mgr.GetClient(), newClientFn: ec2.NewRouteTableClient}),
+			managed.WithCreationGracePeriod(3*time.Minute),
 			managed.WithReferenceResolver(managed.NewAPISimpleReferenceResolver(mgr.GetClient())),
 			managed.WithInitializers(managed.NewDefaultProviderConfig(mgr.GetClient())),
 			managed.WithConnectionPublishers(),
@@ -169,7 +171,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 		return managed.ExternalCreation{}, awsclient.Wrap(err, errCreate)
 	}
 	meta.SetExternalName(cr, aws.StringValue(result.RouteTable.RouteTableId))
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) { // nolint:gocyclo
diff --git a/pkg/controller/ec2/routetable/controller_test.go b/pkg/controller/ec2/routetable/controller_test.go
index 83c913b30f..3aed71db35 100644
--- a/pkg/controller/ec2/routetable/controller_test.go
+++ b/pkg/controller/ec2/routetable/controller_test.go
@@ -214,7 +214,7 @@ func TestCreate(t *testing.T) {
 				cr: rt(withSpec(v1beta1.RouteTableParameters{
 					VPCID: aws.String(vpcID),
 				}), withExternalName(rtID)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"CreateFailed": {
diff --git a/pkg/controller/ec2/securitygroup/controller.go b/pkg/controller/ec2/securitygroup/controller.go
index f4a5c3fd68..fa0b1bc9bd 100644
--- a/pkg/controller/ec2/securitygroup/controller.go
+++ b/pkg/controller/ec2/securitygroup/controller.go
@@ -18,6 +18,7 @@ package securitygroup
 
 import (
 	"context"
+	"time"
 
 	"github.com/aws/aws-sdk-go-v2/aws"
 	awsec2 "github.com/aws/aws-sdk-go-v2/service/ec2"
@@ -73,6 +74,7 @@ func SetupSecurityGroup(mgr ctrl.Manager, l logging.Logger, rl workqueue.RateLim
 		Complete(managed.NewReconciler(mgr,
 			resource.ManagedKind(v1beta1.SecurityGroupGroupVersionKind),
 			managed.WithExternalConnecter(&connector{kube: mgr.GetClient(), newClientFn: ec2.NewSecurityGroupClient}),
+			managed.WithCreationGracePeriod(3*time.Minute),
 			managed.WithReferenceResolver(managed.NewAPISimpleReferenceResolver(mgr.GetClient())),
 			managed.WithInitializers(managed.NewDefaultProviderConfig(mgr.GetClient())),
 			managed.WithConnectionPublishers(),
diff --git a/pkg/controller/ec2/subnet/controller.go b/pkg/controller/ec2/subnet/controller.go
index 30cbd922b7..9fd9624cb4 100644
--- a/pkg/controller/ec2/subnet/controller.go
+++ b/pkg/controller/ec2/subnet/controller.go
@@ -18,6 +18,7 @@ package subnet
 
 import (
 	"context"
+	"time"
 
 	"github.com/aws/aws-sdk-go-v2/aws"
 	awsec2 "github.com/aws/aws-sdk-go-v2/service/ec2"
@@ -64,6 +65,7 @@ func SetupSubnet(mgr ctrl.Manager, l logging.Logger, rl workqueue.RateLimiter) e
 		Complete(managed.NewReconciler(mgr,
 			resource.ManagedKind(v1beta1.SubnetGroupVersionKind),
 			managed.WithExternalConnecter(&connector{kube: mgr.GetClient(), newClientFn: ec2.NewSubnetClient}),
+			managed.WithCreationGracePeriod(3*time.Minute),
 			managed.WithReferenceResolver(managed.NewAPISimpleReferenceResolver(mgr.GetClient())),
 			managed.WithInitializers(managed.NewDefaultProviderConfig(mgr.GetClient())),
 			managed.WithConnectionPublishers(),
@@ -160,7 +162,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 
 	meta.SetExternalName(cr, aws.StringValue(result.Subnet.SubnetId))
 
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/ec2/subnet/controller_test.go b/pkg/controller/ec2/subnet/controller_test.go
index 32db5d97fa..cf4c114e58 100644
--- a/pkg/controller/ec2/subnet/controller_test.go
+++ b/pkg/controller/ec2/subnet/controller_test.go
@@ -234,7 +234,7 @@ func TestCreate(t *testing.T) {
 			},
 			want: want{
 				cr:     subnet(withExternalName(subnetID)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"CreateFailed": {
diff --git a/pkg/controller/ec2/vpc/controller.go b/pkg/controller/ec2/vpc/controller.go
index 3d50d36313..4bdea55a9b 100644
--- a/pkg/controller/ec2/vpc/controller.go
+++ b/pkg/controller/ec2/vpc/controller.go
@@ -19,6 +19,7 @@ package vpc
 import (
 	"context"
 	"sort"
+	"time"
 
 	"github.com/aws/aws-sdk-go-v2/aws"
 	awsec2 "github.com/aws/aws-sdk-go-v2/service/ec2"
@@ -67,6 +68,7 @@ func SetupVPC(mgr ctrl.Manager, l logging.Logger, rl workqueue.RateLimiter) erro
 		Complete(managed.NewReconciler(mgr,
 			resource.ManagedKind(v1beta1.VPCGroupVersionKind),
 			managed.WithExternalConnecter(&connector{kube: mgr.GetClient(), newClientFn: ec2.NewVPCClient}),
+			managed.WithCreationGracePeriod(3*time.Minute),
 			managed.WithReferenceResolver(managed.NewAPISimpleReferenceResolver(mgr.GetClient())),
 			managed.WithConnectionPublishers(),
 			managed.WithInitializers(managed.NewDefaultProviderConfig(mgr.GetClient()), &tagger{kube: mgr.GetClient()}),
@@ -183,7 +185,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 
 	meta.SetExternalName(cr, aws.StringValue(result.Vpc.VpcId))
 
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/ec2/vpc/controller_test.go b/pkg/controller/ec2/vpc/controller_test.go
index 07e0239ff5..94e0df215e 100644
--- a/pkg/controller/ec2/vpc/controller_test.go
+++ b/pkg/controller/ec2/vpc/controller_test.go
@@ -251,7 +251,7 @@ func TestCreate(t *testing.T) {
 			},
 			want: want{
 				cr:     vpc(withExternalName(vpcID)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"SuccessfulWithAttributes": {
@@ -282,7 +282,7 @@ func TestCreate(t *testing.T) {
 					withSpec(v1beta1.VPCParameters{
 						EnableDNSSupport: &enableDNS,
 					})),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"CreateFail": {
diff --git a/pkg/controller/ec2/vpccidrblock/controller.go b/pkg/controller/ec2/vpccidrblock/controller.go
index fecaa79ae4..af38c4c4ad 100644
--- a/pkg/controller/ec2/vpccidrblock/controller.go
+++ b/pkg/controller/ec2/vpccidrblock/controller.go
@@ -18,6 +18,7 @@ package vpccidrblock
 
 import (
 	"context"
+	"time"
 
 	"github.com/aws/aws-sdk-go-v2/aws"
 	awsec2 "github.com/aws/aws-sdk-go-v2/service/ec2"
@@ -60,6 +61,7 @@ func SetupVPCCIDRBlock(mgr ctrl.Manager, l logging.Logger, rl workqueue.RateLimi
 		Complete(managed.NewReconciler(mgr,
 			resource.ManagedKind(v1alpha1.VPCCIDRBlockGroupVersionKind),
 			managed.WithExternalConnecter(&connector{kube: mgr.GetClient(), newClientFn: ec2.NewVPCCIDRBlockClient}),
+			managed.WithCreationGracePeriod(3*time.Minute),
 			managed.WithReferenceResolver(managed.NewAPISimpleReferenceResolver(mgr.GetClient())),
 			managed.WithConnectionPublishers(),
 			managed.WithInitializers(managed.NewDefaultProviderConfig(mgr.GetClient())),
@@ -171,7 +173,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 		}
 	}
 
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(_ context.Context, _ resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/ec2/vpccidrblock/controller_test.go b/pkg/controller/ec2/vpccidrblock/controller_test.go
index b6124b0a11..489e3b9ccc 100644
--- a/pkg/controller/ec2/vpccidrblock/controller_test.go
+++ b/pkg/controller/ec2/vpccidrblock/controller_test.go
@@ -274,7 +274,7 @@ func TestCreate(t *testing.T) {
 					CIDRBlock: &cidr,
 					VPCID:     &vpcID,
 				}), withExternalName(matchAssociationID)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"SuccessfulIPv6": {
@@ -303,7 +303,7 @@ func TestCreate(t *testing.T) {
 					IPv6CIDRBlock: &ipv6CIDR,
 					VPCID:         &vpcID,
 				}), withExternalName(matchAssociationID)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"CreateFail": {
diff --git a/pkg/controller/efs/filesystem/setup.go b/pkg/controller/efs/filesystem/setup.go
index 4215667911..b3921c802c 100644
--- a/pkg/controller/efs/filesystem/setup.go
+++ b/pkg/controller/efs/filesystem/setup.go
@@ -106,5 +106,5 @@ func postCreate(_ context.Context, cr *svcapitypes.FileSystem, obj *svcsdk.FileS
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, awsclients.StringValue(obj.FileSystemId))
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
diff --git a/pkg/controller/identity/iamaccesskey/controller.go b/pkg/controller/identity/iamaccesskey/controller.go
index aaae680340..fe43003231 100644
--- a/pkg/controller/identity/iamaccesskey/controller.go
+++ b/pkg/controller/identity/iamaccesskey/controller.go
@@ -143,7 +143,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 		}
 	}
 	meta.SetExternalName(cr, aws.StringValue(response.AccessKey.AccessKeyId))
-	return managed.ExternalCreation{ExternalNameAssigned: true, ConnectionDetails: conn}, nil
+	return managed.ExternalCreation{ConnectionDetails: conn}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/identity/iamaccesskey/controller_test.go b/pkg/controller/identity/iamaccesskey/controller_test.go
index 0fb07fc101..a504e75488 100644
--- a/pkg/controller/identity/iamaccesskey/controller_test.go
+++ b/pkg/controller/identity/iamaccesskey/controller_test.go
@@ -263,7 +263,6 @@ func TestCreate(t *testing.T) {
 					withUsername(userName),
 					withAccessKey(accessKeyID)),
 				result: managed.ExternalCreation{
-					ExternalNameAssigned: true,
 					ConnectionDetails: map[string][]byte{
 						xpv1.ResourceCredentialsSecretPasswordKey: []byte(secretKeyID),
 						xpv1.ResourceCredentialsSecretUserKey:     []byte(accessKeyID),
diff --git a/pkg/controller/identity/iamgrouppolicyattachment/controller.go b/pkg/controller/identity/iamgrouppolicyattachment/controller.go
index 8cfe937c6f..6cd715b0d7 100644
--- a/pkg/controller/identity/iamgrouppolicyattachment/controller.go
+++ b/pkg/controller/identity/iamgrouppolicyattachment/controller.go
@@ -157,7 +157,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 	// names of the group and user that are bound.
 	meta.SetExternalName(cr, cr.Spec.ForProvider.GroupName+"/"+cr.Spec.ForProvider.PolicyARN)
 
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(_ context.Context, _ resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/identity/iamgrouppolicyattachment/controller_test.go b/pkg/controller/identity/iamgrouppolicyattachment/controller_test.go
index c9802d19d8..ccea793434 100644
--- a/pkg/controller/identity/iamgrouppolicyattachment/controller_test.go
+++ b/pkg/controller/identity/iamgrouppolicyattachment/controller_test.go
@@ -214,7 +214,7 @@ func TestCreate(t *testing.T) {
 					withSpecGroupName(groupName),
 					withSpecPolicyArn(policyArn),
 					withExternalName(groupName+"/"+policyArn)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"InValidInput": {
diff --git a/pkg/controller/identity/iamgroupusermembership/controller.go b/pkg/controller/identity/iamgroupusermembership/controller.go
index 9b8ecaadb0..6a2cae3e4b 100644
--- a/pkg/controller/identity/iamgroupusermembership/controller.go
+++ b/pkg/controller/identity/iamgroupusermembership/controller.go
@@ -157,7 +157,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 	// names of the group and user that are bound.
 	meta.SetExternalName(cr, cr.Spec.ForProvider.GroupName+"/"+cr.Spec.ForProvider.UserName)
 
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(_ context.Context, _ resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/identity/iamgroupusermembership/controller_test.go b/pkg/controller/identity/iamgroupusermembership/controller_test.go
index f8b8b68565..c786dc94c0 100644
--- a/pkg/controller/identity/iamgroupusermembership/controller_test.go
+++ b/pkg/controller/identity/iamgroupusermembership/controller_test.go
@@ -211,7 +211,7 @@ func TestCreate(t *testing.T) {
 					withSpecGroupName(groupName),
 					withSpecUserName(userName),
 					withExternalName(groupName+"/"+userName)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"InValidInput": {
diff --git a/pkg/controller/identity/iampolicy/controller.go b/pkg/controller/identity/iampolicy/controller.go
index 9cb1f7ce7f..ddc456359f 100644
--- a/pkg/controller/identity/iampolicy/controller.go
+++ b/pkg/controller/identity/iampolicy/controller.go
@@ -162,7 +162,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 
 	meta.SetExternalName(cr, aws.StringValue(createResp.CreatePolicyOutput.Policy.Arn))
 
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/identity/iampolicy/controller_test.go b/pkg/controller/identity/iampolicy/controller_test.go
index d7e8948cca..1f858ce9e8 100644
--- a/pkg/controller/identity/iampolicy/controller_test.go
+++ b/pkg/controller/identity/iampolicy/controller_test.go
@@ -254,7 +254,7 @@ func TestCreate(t *testing.T) {
 						Name:     name,
 					}),
 					withExterName(arn)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"InValidInput": {
diff --git a/pkg/controller/identity/openidconnectprovider/controller.go b/pkg/controller/identity/openidconnectprovider/controller.go
index 40160bb0a8..e243717190 100644
--- a/pkg/controller/identity/openidconnectprovider/controller.go
+++ b/pkg/controller/identity/openidconnectprovider/controller.go
@@ -144,7 +144,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 	}
 
 	meta.SetExternalName(cr, aws.StringValue(observed.OpenIDConnectProviderArn))
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/identity/openidconnectprovider/controller_test.go b/pkg/controller/identity/openidconnectprovider/controller_test.go
index 4016aa1aab..a8a71d2c96 100644
--- a/pkg/controller/identity/openidconnectprovider/controller_test.go
+++ b/pkg/controller/identity/openidconnectprovider/controller_test.go
@@ -257,9 +257,7 @@ func TestCreate(t *testing.T) {
 				cr: oidcProvider(withURL(url), func(provider *svcapitypes.OpenIDConnectProvider) {
 					meta.SetExternalName(provider, providerArn)
 				}),
-				result: managed.ExternalCreation{
-					ExternalNameAssigned: true,
-				},
+				result: managed.ExternalCreation{},
 			},
 		},
 	}
diff --git a/pkg/controller/kms/key/setup.go b/pkg/controller/kms/key/setup.go
index d678403f31..0d198b52a6 100644
--- a/pkg/controller/kms/key/setup.go
+++ b/pkg/controller/kms/key/setup.go
@@ -84,7 +84,7 @@ func postCreate(_ context.Context, cr *svcapitypes.Key, obj *svcsdk.CreateKeyOut
 		return creation, err
 	}
 	meta.SetExternalName(cr, awsclients.StringValue(obj.KeyMetadata.KeyId))
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 type updater struct {
diff --git a/pkg/controller/notification/snssubscription/controller.go b/pkg/controller/notification/snssubscription/controller.go
index 92870828ff..38191676a7 100644
--- a/pkg/controller/notification/snssubscription/controller.go
+++ b/pkg/controller/notification/snssubscription/controller.go
@@ -149,7 +149,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 	}
 
 	meta.SetExternalName(cr, aws.StringValue(res.SubscribeOutput.SubscriptionArn))
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/notification/snssubscription/controller_test.go b/pkg/controller/notification/snssubscription/controller_test.go
index d29b87dd7f..6e987b3627 100644
--- a/pkg/controller/notification/snssubscription/controller_test.go
+++ b/pkg/controller/notification/snssubscription/controller_test.go
@@ -133,7 +133,7 @@ func TestCreate(t *testing.T) {
 			},
 			want: want{
 				cr:     subscription(withSubARN(&subName)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"InValidInput": {
diff --git a/pkg/controller/notification/snstopic/controller.go b/pkg/controller/notification/snstopic/controller.go
index 1b826e3e66..5f70ffcbdc 100644
--- a/pkg/controller/notification/snstopic/controller.go
+++ b/pkg/controller/notification/snstopic/controller.go
@@ -139,7 +139,7 @@ func (e *external) Create(ctx context.Context, mgd resource.Managed) (managed.Ex
 	}
 
 	meta.SetExternalName(cr, aws.StringValue(resp.CreateTopicOutput.TopicArn))
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mgd resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/notification/snstopic/controller_test.go b/pkg/controller/notification/snstopic/controller_test.go
index c0125ae87c..4ea74e1e42 100644
--- a/pkg/controller/notification/snstopic/controller_test.go
+++ b/pkg/controller/notification/snstopic/controller_test.go
@@ -300,7 +300,7 @@ func TestCreate(t *testing.T) {
 				cr: topic(
 					withDisplayName(&topicDisplayName),
 					withTopicName(&topicName)),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"InValidInput": {
diff --git a/pkg/controller/route53/hostedzone/controller.go b/pkg/controller/route53/hostedzone/controller.go
index afe496621f..903d80d0db 100644
--- a/pkg/controller/route53/hostedzone/controller.go
+++ b/pkg/controller/route53/hostedzone/controller.go
@@ -136,7 +136,7 @@ func (e *external) Create(ctx context.Context, mg resource.Managed) (managed.Ext
 		return managed.ExternalCreation{}, errors.Wrap(errors.New("returned id does not contain /hostedzone/ prefix"), errCreate)
 	}
 	meta.SetExternalName(cr, id[1])
-	return managed.ExternalCreation{ExternalNameAssigned: true}, nil
+	return managed.ExternalCreation{}, nil
 }
 
 func (e *external) Update(ctx context.Context, mg resource.Managed) (managed.ExternalUpdate, error) {
diff --git a/pkg/controller/route53/hostedzone/controller_test.go b/pkg/controller/route53/hostedzone/controller_test.go
index 7bd8a759e1..8c1a1708b7 100644
--- a/pkg/controller/route53/hostedzone/controller_test.go
+++ b/pkg/controller/route53/hostedzone/controller_test.go
@@ -268,7 +268,7 @@ func TestCreate(t *testing.T) {
 			want: want{
 				cr: instance(
 					withExternalName(strings.SplitAfter(id, hostedzone.IDPrefix)[1])),
-				result: managed.ExternalCreation{ExternalNameAssigned: true},
+				result: managed.ExternalCreation{},
 			},
 		},
 		"InValidInput": {
diff --git a/pkg/controller/sfn/activity/hooks.go b/pkg/controller/sfn/activity/hooks.go
index bf34d0919c..b87e366555 100644
--- a/pkg/controller/sfn/activity/hooks.go
+++ b/pkg/controller/sfn/activity/hooks.go
@@ -79,7 +79,6 @@ func postCreate(_ context.Context, cr *svcapitypes.Activity, resp *svcsdk.Create
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.ActivityArn))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }
 
diff --git a/pkg/controller/sfn/statemachine/hooks.go b/pkg/controller/sfn/statemachine/hooks.go
index c75f4280ea..409698511c 100644
--- a/pkg/controller/sfn/statemachine/hooks.go
+++ b/pkg/controller/sfn/statemachine/hooks.go
@@ -91,7 +91,6 @@ func postCreate(_ context.Context, cr *svcapitypes.StateMachine, resp *svcsdk.Cr
 		return managed.ExternalCreation{}, err
 	}
 	meta.SetExternalName(cr, aws.StringValue(resp.StateMachineArn))
-	cre.ExternalNameAssigned = true
 	return cre, nil
 }