Regardless of personal politics, this summer’s unplanned transition of the democratic nominee from Joe Biden to Kamala Harris has been a critical reminder of the need for CEO succession planning. The rapid transition from Biden to Harris, coupled with the immense pressure CEOs are under due to changing market conditions, has led to discussions among Chief People Officers about what they should be doing now to avoid unplanned transitions.
Begin Difficult Conversations Before You Need To Have Them
Most companies have an emergency succession plan, but the dirty secret is that many do not think they will ever have to use it. It did not surprise me that the conversation with Biden came down to the last minute. The decision to step away from power when you think you are still the right person for the role requires great humility, but it also requires a team around you who can influence your thinking well ahead of an actual transition. What can a company do to avoid last-minute pivots?
It is the role of the board to plan and execute a CEO succession, but it is the job of the Chief People Officer, along with the sitting CEO, to provide the board with viable internal candidates. Ideally, the board helps the company avoid a scenario where the CEO stays in the role beyond their expiration date, but as the Chief People Officer you need to be prepared for every option. Actions a Chief People Officer can take to help avoid unplanned transitions include:
- Speak to the CEO early in their tenure about how to approach difficult topics, including planning for succession, even if the expected date is well in the future.
- Ensure there are several confidantes to the CEO who keep the leader honest and help them calibrate their readiness for the future. This is often a combination of an external coach, a member of the board directors, and/or other external mentors.
- Encourage the CEO to seek rigorous performance appraisals from the board, which will help them avoid insular thinking and ensures they stay connected to the pulse of the market, key customers, and employees.
- Proactively build an internal bench of successors well in advance of any transition date. It is never too early to start building the succession pipeline.
Surprise, We Have a New Leader
Even when companies plan ahead, surprise transitions happen. We saw this when tones of shock rang out from Biden’s personal team as they found out about his decision to exit the campaign on social media alongside the rest of the world. That said, Harris’s team was ready, as evidenced by her swift and seamless ascent that followed.
When in the throughs of a rapid unplanned CEO succession, Chief People Officers and their teams often find themselves in reaction mode and grappling with their own feelings about the change. While HR leaders are bound to have strong thoughts and feelings about the leadership transition, the more quickly they can work through personal reactions, the better they will be able to help the company adapt. Some tips for HR leaders faced with a new boss include:
- Gain the Ear of the New CEO: Be curious about the new leader’s immediate agenda and what they have been asked to do by the board. A CEO transition rarely happens without a mandate for change. Be sure you know what they have been asked to achieve and be prepared to focus forward and help the company adapt.
- Be the Eyes and Ears on the Ground: A new CEO from the outside has limited time to establish credibility, authenticity, and acceptance. Help them understand the narrative on the ground so they can adapt their leadership as quickly as possible.
- Help the New CEO Set a Vision and Secure Early Wins: Most new leaders bring energy and optimism, but they may not know how their message is landing, or which pitfalls to avoid. It is critical the new leader share a compelling vision early that projects optimism, authenticity, and a dose of reality. Strong messaging combined with a few early wins builds confidence with customers and employees and secures time for the new leader and the company to implement a refreshed agenda.
Keep Calm and Carry Forward
In addition to helping onboard the new CEO, the HR team needs to help settle the rest of the organization. This has rung true for the team behind the oval office who had to quell the nerves of the nation with such major news breaking so close to election day. Whether the Commander in Chief or Chief Executive Officer, a new leader means changes, which will inevitably create anxiety for some and optimism for others. In corporate America, HR leaders play a critical role in helping employees know which emotion to lean into more. Others will be watching what you and your team do more than what you say. Here are a few tips to help employees adapt:
- Role Model Agility: As the Chief People Officer, you will want to be the role model of change and agility. A new leader often has an ambitious agenda. In response to the agenda, some will drag their feet, but HR leaders do not have that luxury. Give people space and time to react to the leadership change, but then be ready to act quickly to meet the moment. Time is not on your side.
- Listen, Inform, and Connect with Employees: Any leadership change brings uncertainty and employees will wonder what the change means for them. Will I still have a job? Will I fit into the new leader’s system? While you can’t quell all anxiety, the more present and available you are to employees, the more quickly you can help the company adapt to new expectations.
- Help Manage Change Fatigue: If a new CEO is being brought in, it is likely that the company has been trying and failing to execute or adapt to market changes. Employees will be looking for signals that this leader will stick and may be wary of more change on the horizon. The HR team is usually the first to notice cultural fatigue and skepticism. The more you can set the pace and tone in your part of the company, the more others can take note and follow.
- Upgrade Your Own Organization and Strategies: When a new CEO enters, every part of the company is under scrutiny. Make a realistic appraisal of your team and HR strategies. Don’t be wedded to pet projects. Rather, bring in someone with an objective view to make an appraisal of your organization and leadership. Be willing to look at your agenda with fresh eyes and be the first to make the tough calls, rather than waiting to be told.
A wise mentor once said to me, “if you want to change your life, change your story.” Are you a part of the new company story or the old one? New leaders always mark transition. For our country, the next chapter has yet to be written and depends on our behaviors on election day. For a company, a new CEO often signals hope for a renewed sense of growth and prosperity. The one factor that is certain is that change is coming, and HR leaders need to be prepared to lead the way.
Joanna Starek, Ph.D., is Senior Partner, Chief Commercial Officer at RHR International.