It Takes Two to Tango – Transitioning Leadership – Leadership Insights from Liddell Consulting

“Just because you are CEO, don’t think you have landed. You must continually increase your learning, the way you think and the way you approach the organization.” -Indra Nooyi

Even in the best-case scenario, transitioning a new CEO is disruptive – for the company and employees, and the CEO. Ideally, the new leader you bring into your organization has done a great deal of work getting to know your structure, processes, and culture and before they join. And you have thoroughly vetted the new leader’s work style and personality in addition to background, talents, and connections. But according to a Harvard Business Review article, “One-third to one-half of new chief executives fail within their first 18 months.” That’s a big number for many reasons, not the least of which being the upheaval bringing in a new leader can cause.

There is always an adjustment period when a person starts a new role regardless of level, but a CEO would be left behind if they took as long as six weeks, as CIO magazine says. Both the newly hired leader and the organization they are hired into have a role in ensuring a successful transition.

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New Guy Perspective

Whether you are hired from within your organization or are new to the role and the organization, the obvious initial goal is to get the lay of the land. You likely only saw part of the picture before accepting your new position.

• It is now your responsibility to quickly get to know all the players and dynamics, in addition to gaining an in-depth understanding of the more literal data points. The roadblocks and runways will become more apparent the more perspective you have.
• Although you don’t necessarily need to announce the specifics of your plans right away, communicating during the process is a great investment. Not only will this transparency help you establish trust, it will also open channels of dialogue.
• In establishing your goals for the company, create opportunities for measurement in the form of clear responsibilities, accountability, and metrics. Understanding where you are going requires knowing where they have been.

Bringing in the New Guy

Many organizations don’t recognize onboarding a CEO the same way they would a more subordinate role. The assumption is often that the new executive is experienced enough to jump right in. Fact of the matter is that any new guy needs all the help they can get.

• How you transition the new CEO will depend largely on how the outgoing leader exits. Is it a planned and amicable departure or sudden and one-sided? Factoring in the political subtext can ensure that the new CEO can better manage interactions.
• Politics and culture are a huge part of every organization. The undercurrent defines how people communicate, how they handle conflict, and the level of trust they are willing to offer and accept. Although a new leader will impact your company culture, you can provide an honest interpretation of what they are walking into.
• Although onboarding a new CEO isn’t as simple as someone lower on the totem pole, there should be a plan in place. This is helpful regardless of whether the outgoing leader is part of the transition, the board made the transition decision, or whatever the circumstance. Communicating clear expectations will set a path more likely to lead to success.