In 2024, Nike announced it would be undergoing a CEO leadership change. This decision came after the company faced a series of setbacks and faulty sales strategies within a four-year period. In anticipation of this leadership transition, the apparel company was met with significant apprehension: Would the new CEO be prepared to rebuild the momentum and leadership that Nike brings to the market?
While the transition to your new CEO may not garner as much public attention and scrutiny as it did at Nike, transitioning from one key member of leadership to another should still be handled with utmost care and attention. Here are some ways to ensure the transition to your new CEO is successful.
Appoint a Guide
Appoint someone to guide the process before your new CEO begins the transition. Having a single point of contact will make sure things get done and eliminate confusion over who’s responsible for what.
Your guide can facilitate valuable and positive introductions for the new CEO. This can help your new CEO see the company from all different angles. These introductions also lay the foundation for ongoing relationships.
You have several options when choosing a guide. Your head of human resources will have experience onboarding employees and may be a suitable guide. You could also appoint one of your executives who is familiar with the C-suite management level.
Your appointed guide need not be the only person involved in onboarding. They can delegate tasks to your management team, key board members, and investors. However, everything should funnel back to that single point of contact for seamless accountability.
Set Clear Timelines
Before board members, executives, and others involved in the hiring process have signed off on the new CEO, there must be an estimated timeline for the CEO’s transition to their new role. While this will look a little different depending on several variables, such as the size of your organization or whether your new CEO is an internal or external candidate, the goal and outcome are the same.
Here are some questions you can use as a guide to building an effective CEO transition timeline:
- What upcoming deadlines does your company have, and when do you want those objectives fulfilled?
- What major ongoing projects will the new CEO take on? Can these projects be completed within the projected timelines with this leadership transition?
- What key changes are you wanting your new hire to make? Are these changes approachable, scalable, and able to be completed in a reasonable amount of time?
Make sure to set up follow-ups with your new CEO at regular intervals to make sure they have the resources they need to meet deadlines.
Facilitate the Handoff
The handoff process divides responsibilities between the outgoing and incoming CEOs. During this period, you must determine who is leading ongoing projects and making critical decisions. You must also pay careful attention to the transfer of critical information between the two parties.
Here are some questions to consider to ensure a smooth handoff:
- How long will the outgoing CEO stay on to help with this leadership transition?
- Who has the final call on key decisions? Will this depend on the longevity of a project or campaign? (For example, will the outgoing CEO manage short-term or finalized projects, while the incoming CEO takes the point on upcoming projects?)
- What pertinent information should the outgoing CEO share with the new CEO so they are successful in their role? This will include company financial data, recent changes to lower-level departments, current market trends, or competitor details. Details related to partners, board members, stakeholders, and other key relationships are also relevant to new leadership.
Your handoff process questions will vary depending on your industry. Here are a few examples:
Tech Industry
- Are there critical product or tech roadmaps that the outgoing CEO needs to share with the newcomer before the succession is completed?
- Is there unresolved tech debt that the outgoing CEO needs to resolve before their departure?
Industrial Industry
- What major infrastructure or capital investment projects should the new CEO be made aware of?
- Is there a specific way the outgoing CEO handles labor relations or union communications that must be relayed to the new CEO?
Manufacturing Industry
- Are there any current production challenges or disruptions to the supply chain that the outgoing CEO needs to share with the new CEO?
- Does the outgoing CEO need to inform the incoming CEO about any details of contractor relationships?
Health and Wellness Industry
- Are there ongoing clinical studies or ongoing FDA interactions that need to be shared with the new CEO?
- Does the outgoing CEO need to discuss any burgeoning health trends or pressures with the new CEO?
Design a Success Plan
This is the time in the transition when your new CEO works with your leadership team to set goals for the company and map out a path to reach those goals.
A general vision for success can invigorate your company, but you want to focus on the specifics, too. Make goals and checkpoints for this month, this quarter, and this year. Define what success will look like at every stage and what changes take priority during crunch time. A careful, detailed map will sustain the vision of your new leadership and lead to a successful reality.
Align with the Culture
As any CEO recruiter will tell you, the best way to guarantee a failed hire is to abandon your new CEO to puzzle out the company culture alone. Transitioning into the leadership of a new company requires learning about the relationships in the company, as well as learning about the data and policies.
Incorporate training about the culture during onboarding. Does your company have an annual costume party at Halloween or a black tie dinner at a new restaurant every quarter? Are children and partners invited to company events? Do you communicate through professional-level emails or more casual group messages? Do you prefer collaboration or strong, unilateral decisions? Look at employee surveys or customer feedback with your new CEO to give them a snapshot of the cares, values, and opinions of the people they will lead.
As with the success plan, this is a team effort. You want your CEO to meld into the company while also adding their own flavor to the culture. Initially, plan events to introduce your new leadership in ways that fit the current company culture. In time, provide opportunities for the CEO to introduce his or her passions and personality into company events and culture. A long-term, joint effort will align the new leadership with the company culture.
Preparation Equals Success
Transitioning to a new CEO is a major effort for any company, whether you run a small, home-grown business or work for an establishment that brings in millions of dollars in revenue annually. By setting clear expectations and facilitating a robust handoff process, you’ll set your new CEO up to chart a course toward ambitious and innovative new goals.
Need help finding or transitioning to your new CEO? Contact our retained executive search firm.
