It’s always disruptive when a C-suite member leaves a firm. When things have been done one way for a long time, switching to a new regime is jarring. However, effective C-suite executive transition planning can minimize this impact.
The good news is that there are ways to manage this process that foster continuity. If you get it right, you may discover that the impact is minimal, or your people don’t really notice at all.
So, what should you be doing?
Six steps of a C-suite executive transition plan:
1. Communicating Transparently
The first step in an executive transition plan is to communicate with your employees and board members about what’s happening. Usually, people leave C-suites because they want to retire or move into a different position. However, there could be foul play involved, so always mention this to build trust.
During these conversations, you should mention the timeline to find a possible replacement. Ideally, you should be conservative, since C-suite talent can be hard to find.
2. Engage HR And Legal Teams
During the exit process, you’ll also want your HR and legal teams to help you. For example, you could activate non-compete clauses or get legal documents written up for the departing member to sign so they don’t give away company secrets or start up a rival firm using their insider knowledge.
3. Hire An Interim Position
You could also explore the possibility of hiring for an interim position. Here, someone comes in temporarily to provide cover before you hire another executive full-time.
For example, you could hire an interim CFO if you’ve just lost your chief financial officer. This professional can keep everything ticking over until the new person arrives.
4. Maintain The Culture
Another approach to maintaining continuity is to keep the same culture, even if the person leaving initiated it. To do this effectively, you’ll need to address employee concerns and ensure the messages coming from the top are the same as before.
Of course, if your culture is toxic and the departed executive was getting in the way of reform, you can change it. However, be aware that forcing your company through large shifts can alienate employees and increase the turnover rate.
5. Develop A Succession Plan
Ideally, you also want a succession plan in the background so you have a process to follow when events like these occur. Therefore, if you don’t have one, write one now.
If you’re currently going through the thick of the process, then you can download and print templates. These tell you roughly what you need to do and the order in which to do it, for a smoother transition.
6. Use External Advisors
Finally, it can help to use external advisors when going through a significant leadership change after many years. These professionals can help you identify a new person to add to your team already working in the industry, and ensure they provide a cultural fit.
You can think of external advisors as offering an extended interview. Often, they have links with high-profile people in the industry who would feel at home taking on an executive role in your company. It’s just a question of finding the right individuals for the job. These strategies promote a smoother executive transition plan and maintain organizational stability.
