Though they’re frequently overlooked, incumbent CEOs are central to ensuring drama-free successions. An in-depth study of 30 departing CEOs shows that when they have strong relationships with the board, are actively engaged in choosing their replacements, and have positive views of the process, handoffs are much more successful. But if they experience ambivalence or regret or feel excluded, transitions can become tumultuous.
Drawing on extended interviews with outgoing executives, this article discusses the five psychological crossroads that leaders face when they step down and offers advice on what boards and CEOs can do to navigate each one more deftly.
All boards aspire to a drama-free CEO succession—to one that not only is proactive and strategic but also positions the organization for future success. The best practices for handling this process are well understood: start early, identify and develop multiple internal candidates, assess their fit with organizational needs, choose the right person, and then thoughtfully onboard the chosen successor.
