Deborah Rubin, RHR International

This is the last in a series focusing on the different stages of the CEO lifecycle—the CEO’s exit. This phase is the simplest conceptually, yet can be surprisingly challenging. Handled well, a CEO can create an enduring legacy through enabling the effective transition of his/her successor. Handled poorly, the contributions of an otherwise successful CEO can be overshadowed by missteps at the end, hampering the next leader and causing the organization to lose focus and momentum (Inside CEO Succession: The Essential Guide to Leadership Transition by RHR on the topic covers this in much more detail). There are three key elements in this phase:

Assist the board in the selection of the successor. 

The board is ultimately responsible for selecting the next CEO, and it is one of their most important responsibilities. However, for planned successions, the incumbent CEO can help frame the process, partnering with the board, serving as a catalyst for action when needed and providing input. The CEO typically has considerable influence when the focus is on internal candidates, but less of a voice when the likely source is external, although there are exceptions. Supporting the selection process without attempting to dictate the results is the CEO’s role at this point. The CEO also generally has the greatest insight into the individual sensitivities of the internal candidates and how best to communicate with them in order to maximize retention.

The Life Cycle of the CEO:

Overview | Preparation | Entry | Middle Phase | Closing | Exit

What must you prepare your potential successors to do? There are eight core responsibilities that span across most CEO positions.

Shortcuts promise an earlier arrival, reduced effort, or less expenditure for a similar outcome. But it's difficult to foresee their risks until they suddenly emerge. Such is the case with CEO succession planning.

Leadership in the boardroom and the C-suite increasingly requires a balance of wisdom and mettle. This is particularly true in the age of activist investors, social media and proxy advisory firms. Leaders need wisdom to ask the right questions, recognize possible scenarios and risks, and understand the dynamics in play. However, perhaps even more than in the past, these leaders must also summon the mettle to dramatically increase the pace of decisions to fit a window of opportunity, or to intentionally forge a strategic path that involves either a battle or a setback in near-term business performance.

“get ahead of messaging and create a plan for proactively telling your story and dealing with negative press (both internal and external)." - DEborah rubin, rhr international

Here are 4 things to consider that leverage both wisdom and mettle. 1. The need to buy time or find the right moment. If this is the go-to response, the odds are that the appeal stems from fear versus wisdom. Windows of opportunity tend to close, and storms may increase in substance. 2. Action is better than no action. However, inaction reinforces stasis and second-guessing. With no forward movement, the organization can find itself being left behind. 3. Ongoing avoidance erodes options. Earlier battles are sometimes easier to win or weather than those left too long. 4. Create a compelling message. In this age of social media, it is important to get ahead of messaging and to create a plan for proactively telling your story and dealing with negative press (both internal and external). The worthy fights are those required for the success and sustainability of the business, even if they are painful in the short-term. Click here to read RHR International Senior Partner Deborah Rubin's complete blog post on leadership in the boardroom.