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:
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.
Once the selection has been made, there are important aspects to consider. First is the timing regarding the hand-off of responsibilities. Staged transitions, such as creating a time-limited COO role, can signal an upcoming transition and allow the organization and the external world time to adjust, as well as allow the successor to learn parts of the organization that may be less familiar to him or her. However, business requirements, personal situations and the dynamics between the incumbent and the successor should also factor into the decision. At least three months of overlap between the two executives allows some time for the incumbent to provide insights into the senior team, the organization, competitors and the industry. Second, it is important to generate a robust and compelling communication plan that encompasses internal stakeholders as well as a proactive outreach to key external constituents such as customers, suppliers, investors, analysts and the media.
The views are mixed regarding whether or not the incumbent CEO should remain involved with the organization in a time-limited role as board chair or another role, or to make a clean break. This decision should be based on what the organization and the new CEO need to be successful, and what the outgoing CEO is willing or able to do. When the organization must make a radical shift in strategy, the presence of the prior CEO can impede the new leader’s ability to dismantle what was previously built. The dynamics between the two individuals will also impact the decision, as well as how well-defined the proposed roles and responsibilities are.
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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:
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.
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.
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.
