Situation: A founder CEO, after many years building a business, has lost the passion that he had early on. He needs to hire someone to succeed him, assuring the ongoing growth and value of the company while minimizing ongoing personal involvement. How does a founder hire his (or her) replacement?
Advice from the CEOs:
- When a founder has lost the passion to continue running a business it is time to move on. Passion is critical to meet the day-to-day demands of a business.
- Before you start looking, decide whether you will continue to have a role in the business, and what that role will be. Will you remain Chairman of the Board and give up the CEO role? If so, are you ready to let go of the CEO role so that the right person can take it on? Typical company structures for Chairman/Top Manager roles are:
- Chairman focuses on growth strategy, select PR and critical relationships.
- CEO/COO/GM handles operational planning and day-to-day management.
- The candidate that you seek will have the following profile:
- Good energy, loves the business, but not ready for the risk of building a company.
- When the right person has run the business for you for a few years that person may become your exit strategy.
- Go to your next trade show with the mindset to find the right person. Many of the best candidates will be on the trade show floor – now working for someone else, but inwardly looking for their next opportunity.
- Spread the news ahead of time that you’re looking. See who seeks you out.