How to Groom Your Next CEO
Is your current CEO ready to participate in the process of grooming your next CEO? You need to consider this before you begin that process.
To begin a successful transition between an exiting CEO and an entering CEO, both must be ready to participate in the process. Typically, stepping down isn’t an easy process and requires a working relationship with the entering CEO that allows for continuous movement and refining. In other words, it’s the focused and concentrated process of the exiting CEO stepping back and allowing the next CEO to step up.Here’s a look at how to start grooming your next CEO for the transition process.
Start a Gradual Speed-Up
First, the CEO who’s on the way out needs to start slowing down and the rising CEO needs to start speeding up. It’s as if they’re runners passing the baton in a relay race.“Successful transition is the last act of a great leader,” Marshall Goldsmith quotes Frances Hesselbein, president and CEO of the Frances Hesselbein Leadership Institute, as saying in his 2009 book “Succession: Are You Ready?” It’s the CEO’s job to make sure the next person in line is ready to transition into the role of CEO.Often, departing CEOs have a hard time stepping back enough to give incoming CEOs the space, visibility and opportunity to act at the CEO level of leadership. The current CEO needs to be able to pass along information and give the next CEO opportunities to speed up and start taking a more robust and visible role within the company.
Offer Abundant Feedback
An incoming CEO needs to receive a lot of feedback to gauge where she’s at in terms of her skills and development. It’s important for her to understand the strengths, gaps and skills she’ll need to develop to be successful in her new role. Assuming she has the technical skills necessary to be successful, you need to focus on the leadership and behavioral competencies that will be important in her future work as CEO.To get the most out of the feedback, the emerging CEO has ask for and be open to hearing different feedback and perspectives and committed to self-development, making a serious effort to develop in the areas necessary for her next role.
Help Establish Positive Connections With Stakeholders
It’s necessary for the outgoing CEO to provide access and visibility to the stakeholder groups the new CEO will need to interact with. Positive interaction with stakeholders such as community leaders, board of directors, employees and the rest of the senior level leadership team are all vital to a CEO’s success.CEOs have a lot of equity in relationships. Existing CEOs can help transfer some of the equity of those relationships by helping inspire confidence in their successor. For example, through making introductions, setting them up with key people, having them take the lead on important meetings or negotiations, or, by having the new CEO to step in and answer questions from stakeholders.
Help Develop Well-Rounded Business Acumen
If the new CEO is just coming out of working in one department or division it’s important for him to increase his business acumen for the company as a whole. This should start early on in the succession process. He may need to do this through deliberate exposure to departments and functions he didn’t encounter in his previous role.
Provide Internal and External Coaching
Throughout the transition process, provide the rising CEO with internal coaching. A close relationship and coaching dynamic between the exiting CEO and the entering CEO is vital to the transition process. 360 degree feedback and working with an external coach can also be valuable in helping the new CEO gain insight and focus. It’s also a valuable way to work toward achieving developmental goals and gaining exposure.Need help developing your emerging leaders? Consider Success Labs executive coaching.Success Labs is a full-service, strategic organizational and leadership development company located in Baton Rouge, La. For more than 25 years, our expert team of consultants has worked with hundreds of companies to explore their business potential and improve their company and cultural performance. Contact us to get proactive about your people strategy.
