LEADER AND OWNER TRANSITIONS


Appointing a CEO is one of the most pivotal decisions the board of a company can take.  It is estimated that a third to half of all CEO recruitments are replaced within the first eighteen months*. We support businesses with the process of managing the transition and with executive coaching to minimise disruption and maximise efficacy of a leadership change.

 

For such a focal position there needs to be clarity on the type of leader needed for the business for the future alongside any other leadership or governance changes that are dependent.  There is also much greater complexity in engagement with stakeholders and the organisation on the change planned and in managing the cultural impact.  One of the trickiest aspects is ensuring the transition (and a new CEO) sits well within the cultural and political landscape of the organisation.

With a Founder-CEO transition the process is exponentially more complex given the personal and human complexity involved with ceding control and someone new stepping into some very established leadership shoes. This is especially true when the Founder remains in the business.  We support with the development of clear remits of control, principles of working and with ongoing coaching and support to manage through any issues that arise.

Shifts in ownership structure can have a similarly disruptive impact on the effective leadership, governance and culture of organisations.  Whether this is new private investment, leveraged or management buy-out, another form of employee ownership, or an IPO, the change needs to be carefully considered in light of stakeholder needs and expectations and the parallel changes in strategy, governance, operating model and culture.  We are experienced in supporting businesses with the leadership, governance and cultural challenges that such transitions entail.

 

*Ciampa, D. (2016). After the handshake. Succession doesn’t end when a new CEO is hired. Harvard Business Review.