The last act of a great CEO

Abstract

No one is in a better position to get an incoming CEO up to speed than his or her predecessor, whose insights and accumulated wisdom are uniquely valuable during the transition and even beyond. The outgoing leader can provide information about the expectations of high-ranking employees; short-term opportunities ripe for harvesting; how the board and others perceive the newcomer's reputation or personal brand; the strengths and foibles of internal allies and external partners; organizational bench strength; and the wisdom that comes from experience well reflected upon. Organizations and their shareholders don't want intellectual capital like this to simply evaporate, which is why nearly every multinational corporation makes ongoing consultation a requirement in severance contracts and pays handsomely for it. Nevertheless, candid, in-depth discussions between outgoing and incoming CEOs rarely take place. Friel, formerly the chairman and CEO of Heidrick & Struggles, and Duboff, the CEO and a cofounder of HawkPartners, conducted numerous interviews with people who had been through at least one CEO transition to find out why those discussions didn't happen as a matter of course and how best to draw on the knowledge of a departing leader. They clearly outline the steps that organizations can take, such as making golden parachutes contingent on debriefing conversations, having HR arrange the meetings to dispel any awkwardness, and creating a thorough agenda. And they advise the two executives to meet as equals, share the "first 90 days plan," and speak consistently about the past and the future--to the media as well as to stakeholders. Much of an outgoing CEO's knowledge will be lost unless a conscious effort is made to capture it. As the average tenure of chief executives shrinks, it becomes increasingly imperative that they get off to a strong start.