adminIt is a daunting task to replace a good chief executive, particularly one who has led the organisation to unimaginable heights.
There are some CEOs that set the bar so high to the point of unsettling the successor.
Market share prices in some listed companies have taken a severe knock due to a change in top management.
The financial and emotional costs involved can be astronomical if not managed effectively.
Many executives earn more annual leave days than they have time to take, therefore, this payout can amount to a substantial sum — perhaps a month or two of accrued paid leave.
Executive hiring is also not cheap; a lot of money is spent on advertising, legal issues and reviewing the contract.
Sometimes the organisation misses deadlines or key events that the CEO used to direct as they search for a new executive.
Remember that some of your key stakeholders are with you because of the chief executive’s influence, as soon as they hear that he/she has left, there is bound to be some important relationships that could be dropped.
There are also some missed strategic opportunities that could be felt.
At times, there might be loss of confidence in the organisation’s ability to perform to stakeholders expectations.
The organisation might have to pay all these intangible costs. Staff morale can also plunge to unprecedented levels.
It is always important for the organisation to put in place measures that prevent such kind of shock waves.
Some boards choose to hire an interim manager or allocate some of the duties to any one of the capable staff members.
Some boards have put together a succession plan where transitions are carefully planned. It might sound almost unreal to plan for someone’s exit while there are still there but succession planning is like taking an insurance policy.
You want to assure viability in the event of unforeseeable circumstances. It could be wise to start saving or putting aside a reserve fund for these kinds of transitions.
Also encourage your CEO to exit smoothly. It could help to sit and advise him/her of the dangers of an acrimonious departure.
Leaving with grace and dignity has the benefit of building their reputation and profile.
While we agree that leadership transition is a natural part of an organisation’s life’s cycle, it must be done in a way that also attracts new leadership.
However, if you are still the incumbent leader, you must serve your organisation with passion and strength.
Make sure that you know and aware when it is time to leave, do not be haste in making decisions.
Remember your departure is part of an important leadership legacy that you are creating. You are most likely not going to complete all the tasks that need to be done.
My personal mentor always used to say that make sure you leave a cleaner yard than the one you found.
Put yourselves in the shoes of the other person and ensure that you leave the type of information that you feel is handy as you enter your new position.
Staff members must also be advised not to take advantage of a departing CEO to flout policies. This kind of behaviour must not be encouraged.
Resigning is a natural process, which should not result in a dysfunctional relationship between the employee that is departing and his or her co-workers.
Why should relationships turn sour because the CEO has announced his/her departure?
Every manager or CEO should never think that there are indispensable, the organisation will strive without you.
However, your exit must always be with grace and dignity.
Till next week, May God richly bless you!!
l Shelter Chieza is an advisor in management issues. She can be contacted at [email protected]
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