Advice & Counsel - Transitions: The Company's Role
At least half of the fault for leader transitions that fail is that the company that hired or promoted the new leader did not do its job well enough. There are two types of transitions: forced (where the incumbent leaves abruptly and anew leader is hired to replace him right away) and planned (where a designated successor is hired or promoted and assumes the responsibilities of the CEO gradually). Many companies prefer the latter... and if the conditions are right, it's usually best for all involved. But it's also the most complicated with a lot of moving parts and much that can go wrong to derail success. The company must get right: order and a game plan. That job falls to the four major players on the company side of the transition equation:
- The Board: which must accept ultimate accountability.
- The CEO: who must be responsible for managing the transition process and the assimilation of his successor.
- The CHRO: who should be the one to coordinate the various tasks and connections of the search and the transition processes.
- The Senior Managers: who must ensure the organization is prepared for the transition and must line up behind it.
How these major players interact and combine forces for a successful hand off is always tailored for each unique situation and set of personalities.
* for more, see The Company's Role in Transitions at the Top, Ciampa & Dotlich, Wiley, 2015 (in press)