by Jason Richmond, CEO and Chief Culture Officer at Ideal Outcomes, Inc.
In a 100m relay race, there’s nothing more devastating for a team than to drop the baton during the critical handover moment. Likewise, transitioning leadership in business can be tricky.
Leadership transitions are delicate because they involve not only a change of responsibilities, but also mindset, attitudes, and sometimes even policies and systems. Social dynamics and politics can be at play, so it’s unsurprising these transitions often present some challenges and uncertainties. How well companies prepare to navigate these junctures will determine their ultimate success. The key to avoiding transition traps is to be aware of what they are and take the appropriate steps to prevent them from happening.
Let’s consider some best practices that can help companies embrace change of leadership and set incoming leaders up for long-term success.
Begin with Executive Support and Endorsement
An organization’s leader doesn’t just set the tone for how the business functions in the day-to-day. They embody the organization’s mission and values, set business-wide objectives, and determine next steps. When a high-profile executive departs, it’s easy to understand why employees might feel nervous or apprehensive.
If the entire executive team (and, ideally, the departing incumbent) speaks with one voice when announcing impending leadership changes, it can help cultivate a shared sense of trust and continuity. The message might be framed as: “We’re ready to hand over the reins to an incredibly competent leader who we’re confident will continue our journey. We share the same vision for this company, and we’re all excited about its future.”
This will quickly dissolve any skepticism employees may have toward the new authority figure. As legendary tennis player Billie Jean King once said, “Create your legacy and pass the baton.”
Prioritize Transparent and Timely Communications
Lingering uncertainty breeds distrust. When employees don’t receive transparent and timely communications about a leadership transition and what to expect, they may grow concerned about their own job security.
New leaders need to be visible and make an effort to connect with people across the entire organization, not only those within their direct team. They should provide immediate clarity about vision, strategy, expectations, and roles. And when it comes to any planned changes, new leaders should give concrete answers to people’s questions, including timelines, so that they can see a clear path forward.
HR teams might consider introducing pulse surveys and town hall meetings to give employees the opportunity to have their questions answered and concerns addressed. Peer groups are another effective means to capture intelligence and preserve a strong workplace culture.
Respect the Legacy
Strategic leadership transitions can signify healthy changes essential to a business’s success. The most successful new CEOs understand that to take their companies to new heights, they must respect the legacy that built them. Speaking and acting with humility and acknowledging the previous leader’s contributions are great ways to successfully transition.
When it comes to any “inherited” challenges, successful incoming executives take complete and immediate ownership of the situations they’re faced with. This sends a positive signal about the new leader’s ability to lead and effectively take control of their role and responsibilities within the organization.
Double Down on Succession Planning
Succession planning is a sound strategy for minimizing the potential risk and disruption associated with leadership transitions.
To develop well-rounded future leaders who can understand the full spectrum of a company’s capabilities, differentiators, and footprint, organizations should expose emerging and high-performing talent to varied facets of their operations. Engage with your managers and examine performance reviews to learn which employees could potentially move into key roles. Create a cross-training plan for high-performers so they develop a broader skill set they can apply to their next leadership position.
Encouraging this kind of organizational mobility can:
- Cultivate appropriate successors who have a deeper knowledge of the company and its operations
- Avoid siloed pockets of expertise at senior management levels
- Build a culture that’s more resilient to big changes like leadership transitions
- Ensure the talent pipeline is active and continuously growing
Consider Engaging a Change Agent
In any organization, even the smallest of changes can be met with fear and resistance. A company is only as good as its people, so the focus should always be on the human side of change in a leadership transition and how the experience can be as comfortable and seamless as possible for everyone involved.
New or soon-to-be leaders can benefit from expert guidance before they assume leadership roles. A qualified change agent can help navigate the pivots that surface with leadership changes and preserve morale, productivity, and stability.
A change agent can be an individual within the company or an external consultant who is hired to help manage the change. Their role is to guide the company through transition and assist new leaders in building connections, establishing and maintaining personal interactions, effectively handling communications, and ensuring everyone stays aligned to the company’s mission and core values.
Build a Culture That Supports Effective Leadership Transitions
A new executive’s action or inaction will influence the destiny of the business. Despite the high stakes associated with leadership transitions, many companies find themselves underprepared for the experience.
Ideal Outcomes has been working with mid-cap companies for over 20 years as strategic change consultants. We’ve worked with numerous companies to address the opportunities and challenges in leadership transition and helped them deploy strategic programs to evolve their culture.
If you’re a new senior leader in your organization, then cultural health is your responsibility. If it’s time to take action and drive strategic culture change at your company, contact us today for a free virtual consultation.