At last week’s Memcom CEO forum, under Chatham House rule, we discussed amongst other things, the importance of a handover from an outgoing CEO to their new replacement. It got the group thinking about the various bits of advice they’ve received over the years, which are useful for someone starting their career in a leadership role, so we’ve tried to capture some of that learning for our future leaders…
1. Knowing what to keep an eye on
As a new CEO, understanding the health of your organisation is crucial, as is understanding the priorities of the Board, staff and members - but what else should you keep an eye on? An exiting CEO left a list to their replacement of 10 such areas – and this proved invaluable, since when you’re starting somewhere new, it’s not always obvious what to focus on, and if you’re not careful, you can be drawn into politics.
2. Understand the internal dynamics to identify the real power
Power within an organisation often goes beyond the formal hierarchy, so our CEOs suggest you take the time to understand where the real power lies. This could be in informal networks or through individuals who have significant influence over others. Recognising these power sources early on will help you navigate the organisational landscape more effectively.
3. Assess the most influential staff members
Similar to the above point, it’s important to identify the most influential members of your staff. Since they are individuals who others listen to and follow, understanding who these people are and why they hold influence can be key to gaining support for your initiatives. Engage with them and consider their insights when making decisions – or ignore them at your peril!
4. Discover the outgoing CEO’s areas of weakness
If you’re able to talk to the outgoing CEO (Chair), try to understand their weaknesses, since these are likely to be the areas most neglected, and therefore just as important as their strengths. Likewise, if you’re the one leaving the role, considering sharing your own strengths and weaknesses is a great way of handing over the reins to someone else.
5. Map the stakeholder relationships
Small organisations can often have quite convoluted relationships with stakeholders. For example, work contracts may have been awarded to ex members of staff or associates of Board members, thus it’s important to identify all key stakeholders and understand their relationships with each other and the organisation before you make any crucial decisions. It might also help you better understand the culture and morale of the organisation and give you a better chance of making a success of your new role.
6. Champion healthy change, but don’t do anything without the blessing of the Board
As a CEO, it’s natural to want to leave your mark on the organisation, and most Boards will recognise that change is healthy and necessary for an organisation to grow. However, remember that as a new CEO, staff will naturally be cautious and too much change before you’ve built a culture that embraces innovation and continuous improvement is not going to go down well with either staff or Trustees. Remember to lead by example and be open to new ideas and approaches and take your time to adapt to the new culture before deciding which bits to keep and what needs to change.
7. Do your homework before you start
Your research into an organisation doesn’t stop after the interview, and it certainly doesn’t stop with a cursory look at the accounts and the annual review. If you’re lucky enough to be offered a CEO role, take your time to talk to people in the industry to learn about topics such as the organisation's history, culture, and current challenges. Gather diverse perspectives and understand exactly what you’re walking into, so that nothing is a surprise.
8. Enhance your communication
As a departing CEO, it may seem obvious, but you’ll be leaving an organisation where everybody knows you, and going to a new organisation where you’re an unknown quantity, so re-evaluate your communication style, and establish open lines of communication with all levels of the organisation. Total transparency builds trust and encourages a culture of openness and accountability, so regularly share your vision, goals, and progress updates to create a high-performing culture based on trust.
9. Invest in the people
Your success as a CEO will largely depend on the strength of your team and the support they give you, so if you’ve done all of the above, the chances are they’re already behind you and your plans. But investing in their development, providing clear direction and creating an environment where they can thrive, ensures you’re on your way to guaranteed success. Remember that by encouraging collaboration and recognising their contributions you’ll win everyone over, creating a culture of trust and high performance.
We really enjoyed Thursday’s network, and we’re grateful, as always to all of our participants who generously share their knowledge and experience with the Memcom Community. If you’d like to come along to the next one you can find out more, or get in touch with Amber Walker, via Amber@memcom.org.uk
