Top-level leadership transitions require good planning, timing
President Biden’s recent decision to end his candidacy for a second presidential term provides an interesting study in leadership transitions. This is a very relevant issue for American businesses right now, because so many senior leaders are baby boomers, ages 60-78. To plan for a leadership transition in their businesses, they must grapple with two important, interlocking decisions:
When is it time for me to step down? And what is the best process for doing so?
When is it time for me to groom a successor? And what is the best way to do that?
For most people, being in a senior leadership role is very gratifying. The benefits are many: interesting work; power; impact; access to elite groups, events and places; fame; a big paycheck; etc. It’s not easy to walk away from a package like that.
How to know when to walk away
There are two main indications that it’s time to step down. One is that you don’t want to do the job anymore. Along with all those perks come big responsibilities and stresses. A number of my colleagues and clients have either started to wind down their work or have retired completely because they are ready to lead a different kind of life. Chapter 9, “Recurating Your Life,” in my book, Curating Your Life, digs into how to make this choice.
The other indication is that you can’t do the job anymore. You may still love it, but you no longer have what it takes to be excellent. Top-level executive roles demand a huge amount of energy. You have to be constantly involved with people; stay up to date with politics, economics, technology, etc.; and make big, risky decisions with serious consequences. The term “corporate athlete,” coined by Jim Loehr and Tony Schwartz, captures the performance demands of these roles. You have to be in peak condition, physically, mentally and emotionally to master these jobs. Sooner or later, everyone’s capabilities diminish.
Ideally, leaders will recognize one or both of these indicators before there is a crisis. They will create a timeline for their departure, a communication plan for their stakeholders, and perhaps most importantly, a succession plan to ensure an orderly transition to the next leader.
Here’s the rub. Sometimes leaders don’t recognize that it’s time. They overestimate how much longer they can perform at their peak. That makes it very difficult to groom a successor, because the leader may see that person as a threat. This problem is very common in family businesses, but it shows up in other organizations as well.
Grooming a successor is a complicated task. You have to:
Identify one or more candidates and assess their strengths and weaknesses.
Start letting them do parts of your job so they get hands-on experience before moving into the role.
Let them into your relationships and networks.
Offer them high-powered learning opportunities and provide guidance.
Create a timeline for the transition, and sometimes they feel they are ready to take the reins before you are ready to let go.
The stakes are high. Done well, the changing of the guard can be a huge opportunity for the organization to grow and achieve new greatness. Done badly, it can destroy the whole business.
Timing matters in leadership transitions
So how did President Biden do? He missed the mark in some ways. When he ran in 2020, he indicated that he would probably be a one-term, “bridge” president. If he had stayed with that plan, he would have started grooming a successor, presumably Vice-President Harris, right from the start. I am not privy to the details of Harris’ responsibilities and opportunities over the past four years. But as a member of the interested and informed public, I saw very little of her and had little opportunity to get to know her as a leader. That doesn’t look like a thoughtful, intelligent plan to groom her for the presidency.
Instead, Biden chose to run for reelection. And then the disastrous debate of June 27 happened, resulting in a month of chaos and uncertainty.
Ultimately, Biden did the right thing. He recognized it was time to step down and offered enthusiastic support to Harris. He deserves credit for that decision. It takes real courage to step away from the most powerful job on the planet.
But his long delay made his successor’s transition process more difficult. Turmoil and uncertainty could have been averted if Biden and his team had demonstrated more foresight, honesty and objectivity earlier. It appears that the Democratic party is quickly coalescing around Harris, but that may not be the case when it comes to leadership at a large corporation or a smaller family business.
It is critical that senior leaders are honest with themselves and others about when it is time to step down. Part of that is choosing advisors who will tell you the hard truths.
If you would like more information about how to navigate your leadership transition, contact me at ggolden@gailgoldenconsulting.com.
