Guest post written by Guy Beaudin
Guy Beaudin is senior partner at RHR International, a management consulting firm.
Dear Founding CEO,
We haven’t met yet, but I have had the opportunity to observe you in your founder-CEO role at the company you successfully launched and grew from the ground up. Your intelligence, drive and vision are just what entrepreneurs need for success. Without a doubt, your achievement is admirable, particularly by the standards of today’s corporate culture - a culture that elevates the CEO to hero-like status.
So please forgive my presumptuousness in advance, but as a long-time management consultant, I thought I might offer some advice that may help you plan for the day when you become a liability to your company. I know it is hard to fathom, but it is essential that you plan for your inevitable succession, whether it is next month or several years from now. You may point to the Steve Jobs leadership model, now among the most hallowed of corporate fictions, and believe that will be your path as well. In truth, the story of Apple’s founder is a rare exception to the rule.
Let me explain. Leadership is situational, requiring different skill sets at different periods in a company’s evolution. This, in part, explains why the turnover rate of founding CEOs is particularly high. Think of the recent management changes at Research In Motion, where founder Mike Lazaridis was ousted along with his co-CEO Jim Balsillie. Unfortunately, there comes a time when a founder can actually confound company success.
But I assure you, your succession can be a smooth and productive process. In fact, someday it may even claim a place on bookshelves as one of the great leadership stories. To get there, you need only to follow these guidelines.
Surround Yourself with People Who Have the Guts to Disagree with You
You’ll be doing yourself and your company a huge favor by hiring individuals that you can trust, and who aren’t afraid to tilt the mirror on you. Honest feedback and criticism is essential to the success of any leader. For founding CEOs who may need an extra dose of humility, the occasional challenger is particularly important. These individuals will strengthen your organization with the business knowledge you may lack, and will ease the concerns of board members and shareholders.
Don’t Believe that the People Who Disagree with You Don’t Understand Your Company
Surrounding yourself with trusted advisors only works if you actually trust them. Too often, founding CEOs become defensive, blocking out any criticism or disagreement. Narrow-mindedness is a major culprit in the departure of founding CEOs. Pay attention to the advice of your colleagues, and most importantly, learn to act on it.
Have at Least Three Potential Successors at Any Given Time
Difficult as it may be to think about, proper succession planning is ultimately a way to protect the well being and longevity of your company. Have at least three potential successors at any given time. Foster their professional development and give them ample opportunity to appear before the board, employees and shareholders.
Manage Your Personal Life
Letting go is difficult, particularly for a founder. You’ll never truly be able to separate yourself from your identity as a founding CEO. Nonetheless, there are steps you can take to prepare yourself for succession and to fill the void that so many departing CEOs feel. Remember, you are not your company. Maintain interests and hobbies outside of work that you can continue to pursue post-succession. Equally important, learn to delegate responsibilities to others.
And finally, put down that Steve Jobs biography. Need I say it again? The longer you believe that the Steve Jobs leadership model is attainable, the harder your departure will be. The Apple success story is not a justification for why you should hold on to your post forever. Rather than strive to brand your own, unwavering style of leadership, try taking a step back. Evaluate the kind of leader your organization needs in the moment. This mindset will make you more prepared for the succession process when it does arrive.
Sincerely,
Guy Beaudin
