Situation: The Founding CEO of a professional services company has always been deeply involved as a service provider and rainmaker in addition to his role as CEO. As the company has grown he sees the need to spend more time as leader of the company instead of being a doer. What can be done to facilitate this transition, and what expectations need to be created? How do you transition from doer to leader?
Advice from the CEOs:
- Another CEO removed himself from day to day business development activity by bringing in a new rainmaker. These were the adjustments made to facilitate the process.
- During the first year he worked with the new individual in a team or partnership role.
- Compensation was results-based. Discussion of equity consideration was deferred until the individual proved herself.
- The CEO moved himself out of the individual contributor role except as needed to support the new rainmaker’s efforts.
- All of this was accompanied with clear communication to clients: “this adjustment will provide better service to you; here’s my number if you need help.”
- Rainmakers are a different personality type. To be most effective, they must be able to say “my team.” Allowing this will ease the transition and improve the relationship.
- Create teams to deliver solutions that have traditionally been provided by the founder.
- Identify skill sets behind the roles that are being delegated.
- Build an organization that will fill these roles.
- Participate in team meetings, but as an advisor rather than as principal decision-maker.
- Adapt role and behavior in phases to ease the pressure of the change on both the CEO and the team.
- How does the CEO manage his own expectations as well as those of the company as he makes this transition?
- Delegation initially takes more time and effort than doing the work yourself. Be patient and let the investment pay off.
- Larry E. Greiner of USC was an expert on the study of organizational crisis in growth. Per Greiner’s model, the company is currently at stage one – moving from principal and founder to initial delegator. It may be a useful to study this model.