Jeff Durocher

CEO TRANSITIONS II:
THE ROLE OF THE PREDECESSOR
The infl uence of predecessors on the transition of incoming CEOs can be blatant or
subtle; positive or negative; cooperative or confrontational. They can be invaluable
dispensers of wisdom or obstinate builders of roadblocks. The circumstances will be as
varied as the individuals involved. To be successful, the new Chief Executive must quickly learn
to manage this powerful presence and make it crystal clear to all stakeholders as to who is leading
the organization.
Angel or devil, there is no denying that the lingering shadow of the
predecessor affects every freshly appointed CEO. In some cases, this
is a legacy left behind by a beloved founder. In others it is the very
real presence of a former Chief Executive who has left the offi ce, but
not the building. Research soon to be published by RHR International
indicates that 50% of previous CEOs stay involved with the company
as a member of the board. On average, those who stayed as a
director did so for eight months – three quarters of the fi rst critical
year of the transition process.
STAY OR GO? Will new leaders have an easier time transitioning
without them or is it healthier for former CEOs to stay on? According
to a recent study conducted by RHR International and The Corporate
Board – sitting board members were evenly split on the issue.
Clear cut answers to this conundrum are hard to fi nd. There are times
where a clean break is best and others where an overlap is valuable.
Often, contractual agreements spell out the terms of departure. The
ideal scenario would be if the outgoing and incoming leaders could
sit down with the board and make a determination of the exit strategy ...... to read the entire document cThe role of the predessor