Behind the drama of CEO successions lies tricky emotions that must be handled

Interested in more careers-related content? Check out our new weekly Work Life newsletter. Sent every Monday afternoon.
When the torch is passed atop a major corporation, all eyes are on the new CEO. But leadership advisers Rebecca Slan Jerusalim and Navio Kwok, of Toronto-based Russell Reynolds Associates, decided to study the outgoing boss in 30 successions and found their emotions and actions during the search for a new leader and subsequent transfer of power can play a pivotal role influencing their successor’s – and the organization’s – future.
Transitions were more effective when CEOs began the succession process with a strong relationship with the board of directors, were actively engaged in helping choose a successor and had positive views of the process. But when the outgoing CEO experiences ambivalence or regret or feels excluded from the succession process, transitions can become tumultuous.
Their findings apply beyond corporate boardrooms to the community groups and charities where many of us may be involved in steering succession and even to athletes and their coaches when a career approaches its end. Ms. Slan Jerusalim, who has spent eight years on the volunteer board that oversees her children’s non-profit Toronto private school, says in an interview that emotions, control and identity issues are critical to successions in all organizations. “Without understanding the nuances and the impact on both the individual and the broader organization we are really missing an opportunity to experience strong, robust succession processes and to support both the board and the CEO,” she says in an interview.
They broke their findings into five psychological crossroads outgoing CEOs face:
Overall, the study points to the importance of emotions. Mr. Kwok stresses that emotions are data. “Succession can be very clinical, very procedural, when the situation is extremely psychological and extremely emotional,” he warns.
Cannonballs
Harvey Schachter is a Kingston-based writer specializing in management issues. He, along with Sheelagh Whittaker, former CEO of both EDS Canada and Cancom, are the authors of When Harvey Didn’t Meet Sheelagh: Emails on Leadership.