Situation: A CEO is planning a transition to the next phase of his life. This will include resigning as CEO and preparing the company for this transition. What are the important steps for the transition, and what can he do to best prepare the company for the change? How do you plan for a leadership transition?
Advice from the CEOs:
- Prepare a transition plan for the board and set up a meeting to discuss the plan.
- If the CEO is not the Board Chair, then a preliminary step is a conversation with the Chair about the CEOs plans, timing, and an update on short and long-term issues which must be addressed.
- Given that the CEO will be leaving, the Board Chair’s responsibilities will include overseeing the transition. Prepare the transition plan with this in mind.
- By solving the problem of transition for the Board, their task is eased, and opportunities for future relationships and alternatives are created.
- Update the business plan for the company, including a SWOT analysis.
- Line up search firms in advance who can assist in finding a replacement if internal candidates are not available.
- The proper attitude is “my job is to make your job easier.”
- As to the timing of the transition, 3 months is short notice. If personal needs dictate a transition in this timeframe, develop options to facilitate the transition and offer these as an alternative.
- If the CEO’s career options for the future include consulting, the company can become an early client.
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