Search
Close this search box.
Search
Close this search box.

Keys to an Effective Transfer of Top Leadership

From the persistently high CEO turnover rate to the declining tenure of those at the top, we are continually reminded that company performance is not the only factor in failed transitions.

While succession plans are essential to successful change at the top, a well-planned transition, with clearly defined roles for key stakeholders (particularly board members), can serve as the springboard for accelerating strategic alignment between the CEO and board and help to maintain and even build business momentum.

In fact, board involvement and support can make a critical difference, according to RHR International’s study on the subject, Chief Executive Transitions: Keys to an Effective Transfer of Leadership at the Top. Although many board members believe they currently provide sufficient support to the new CEO, a majority of newly appointed CEOs were disappointed with their board’s contribution to their transition.

Of internal hires, 43% felt their board was “involved”, while just 17% of externally hired CEOs felt the same.

Generally, boards support CEO transitions in four ways:
1. By being open and accessible
2. By designating a board liaison to provide support
3. The lead director plays an active role
4. There is often predecessor overlap with the incoming CEO

However, 61% of CEO respondents said their expectations for how their board would support their transition and help them get acclimated to the post were different than what they received. In short, the CEOs expressed a desire for more guidance from their boards than they got.

For example, frequent feedback was a common expectation, as well as more proactive and forthright communication about expectations and strategic priorities. “I wanted clarity of the board’s expectations, which they were hesitant to express,” one CEO said.

In the RHR International study, CEOs and board members will find information to help work through the transformation, including:
• Advice for boards
• Advice for CEOs
• Three changes that are critical to success
• Recommendations for the outgoing CEO
• The board’s role in a well-planned transition
• What CEOs can expect from a well-planned transition

The CEO transition process is, above all else, an organizational event, composed of the interplay of individual (CEO), senior team and organizational dimensions. All three areas must be addressed in an integrated, holistic manner for the transition to be successful.

Find more information here.

Read more articles about the top 1,000 CEOs here.

This content is sponsored by RHR International.


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.