A change of leadership can make employees feel concerned and uncomfortable if the change is not handled well. There will be many questions from employees including how the new leadership will affect their day-to-day? Will the new leader bring in many changes or keep things the same? How will their leadership be different from the previous leader?
It is important to communicate changes as early as possible and to keep a constant flow of information. It also makes sense to give out as much information about the new leader as possible, for example, their career path so far. It might also be a good idea to carry out a Q&A on internal communications to address concerns which employees may have.
On the following pages, three business experts outline the best way to ensure a smooth transition period, starting with Jonathan Sharp, CEO, Britannic. He said: “Because I was already leading many of these projects behind the scenes, the process was more straightforward. My advice to anyone undergoing a leadership change is to establish a realistic timeline and become involved in the transition process as early as possible.”
He also emphasised the importance of transparency and clear communication.
Marten Mickos, CEO from HackerOne, emphasises the importance of the outgoing leader and incoming leader communicating well. He said: “The exiting leader has an important task in preparing the organisation for the leadership change. Organisations often hope to see a new leader who is similar to the previous one. But that would be a mistake – a wasted opportunity. Whether the previous leader was highly successful or not, it will make sense to appoint a new leader with different strengths.”
Chong-Win Lee, CEO Asia Pacific, Logicalis, talks about the importance of having a plan in place. He said: “Leadership teams should put in the effort upfront to create an environment where the new leader has a high probability of succeeding and should address any organisational dynamics or obstacles that might hinder their effectiveness.
“This could involve addressing issues with organisational structures or processes or current business problems that need resolution. Contrary to the common practice of bringing in a new leader to ‘fix’ problems, it can be beneficial to clear as many issues as possible before the new leader comes on board.”
Jonathan Sharp, CEO, Britannic:
I was appointed as CEO of Britannic in April 2023, so I understand firsthand the importance of a smooth transition during a change in leadership. My predecessor and I spent months meticulously planning the handover to ensure minimal disruption and a successful transition.
Having been with the company for 25 years and serving on the board for 20 of those, my transition into the CEO role felt like a natural progression. We had been preparing for the leadership change for nearly a year, holding regular meetings to discuss ongoing projects, company direction, performance, structure and key accounts. This consistent communication allowed me to gradually assume responsibilities, ensuring a seamless transition.
Because I was already leading many of these projects behind the scenes, the process was more straightforward. My advice to anyone undergoing a leadership change is to establish a realistic timeline and become involved in the transition process as early as possible.
My predecessor has remained with the company as executive chairman, providing support as needed. This continuity has been invaluable, particularly for someone like me, with deep roots in the company. However, if an external candidate were stepping into the role, it would be essential to offer comprehensive support, including familiarising them with the company’s culture, technology and operations. Shadowing the outgoing leader can be an effective way for the new leader to gain valuable insight and knowledge.
Transparency and clear communication are vital for a smooth transition. It’s important to inform employees first about the planned change and the reasons behind it, providing an overview of what the new leader will bring. This approach helps to reduce rumours and provides reassurance during a period of change.
We also prepared a Q&A document to address anticipated questions following the announcement. This helps to alleviate concerns and reassure staff. People often fear change, so it’s crucial to boost motivation and provide clarity.
Upon my appointment as CEO, I presented our vision, mission, objectives and strategy to the employees before sharing them with other stakeholders. This was an important step in maintaining open lines of communication and ensuring that everyone was aligned with the new direction I intended to take the company. I have worked with senior management to establish departmental roadmaps, plans and customer and colleague promises that align with the overall business vision and strategy. We meet regularly to ensure that we are making appropriate progress, and I am always available to be a sounding board and to assist where required. I initiated quarterly company updates the year before becoming CEO and have continued this practice to keep everyone informed and to recognise contributions across the business.
As I transitioned from Sales and Marketing Director to CEO, it was also necessary to build a strong team below me and support the development of future leaders within the company.
At Britannic, we foster a transparent culture, encouraging continuous feedback from employees on my leadership and any areas for improvement. Business is about perpetual learning and growth; success hinges on our ability to evolve and adapt.
Marten Mickos, CEO, HackerOne:
Leadership transitions are like relay races. The incoming and departing leader must coordinate their actions so that the baton gets passed without hiccups. If the two leaders don’t communicate well or make their moves at similar speeds, institutional knowledge and value will be lost.
The exiting leader has an important task in preparing the organisation for the leadership change. Organisations often hope to see a new leader who is similar to the previous one. But that would be a mistake – a wasted opportunity. Whether the previous leader was highly successful or not, it will make sense to appoint a new leader with different strengths.
Change as such is useful, and a leadership transition is an ideal point in time to introduce change. If the organisation has a strong culture, it will survive the leadership change. And if it did not, then it probably did not have a strong culture.
For the incoming leader, it is a balancing act between continuity and change. Without continuity of what’s working, nothing new can be accomplished. But without change, nothing new will be accomplished.
Leaders are always appointed to their roles with the expectation that they will enact change. A new leader must quickly find a useful change to make. Otherwise, the organisation will get used to and just expect the status quo.
It is difficult for a new leader to build an unbiased perspective on the state of the organisation and know what suggestions are best to follow. The team member who, on the surface, seems least ready to adjust to the new leader may, in fact, be the most honest in their evaluation of the business. Someone making many useful suggestions to their new boss may just be fishing for favours, and someone else who seems less engaged may actually be busy doing exactly what the new leader is hoping for. Appearances and reality don’t necessarily show up the same way.
The departing leader needs to be available to the incoming one for advice and conversation. But other than that, the old leadership must step completely out. Organisations will tend to look to their previous leaders for cues. But they will quickly need to adjust to the new situation, taking their cues and orders from the new leader only. It is not a bad idea for a departing leader to make themselves entirely unavailable for a month or two. This will force the organisation to learn to operate with its new leader.
Chong-Win Lee, CEO Asia Pacific, Logicalis:
Every organisation inevitably faces leadership changes throughout its lifecycle, which carry both opportunities and risks. Organisations that fail to adequately prepare for these transitions may find themselves struggling to maintain stability and momentum; however, those that approach leadership changes with foresight and careful planning can use these moments as springboards for growth and innovation.
Business leaders can ensure a smooth transition period for a change of leadership by implementing a well-structured plan, starting with the key outcomes the organisation aims to achieve with new leadership. Leaders should evaluate whether the organisation needs to pivot into new growth areas, change the shape of the business, or establish itself in emerging fields such as AI and pursue new leadership that will take the business where it needs to go.
Once the desired outcomes are established, leaders must consider the leadership qualities necessary to achieve these goals. They should also assess whether the current leadership team possesses these attributes and can step up to lead the organisation into its next chapter, or if they can be developed through proper training and coaching programmes. If the current leaders can be developed to meet these needs, that’s often the preferred path over external parties. However, it’s crucial to remain open to external candidates who can provide immense value to businesses should the required skills be truly unique and cannot be found in internal candidates.
Leadership teams should put in the effort upfront to create an environment where the new leader has a high probability of succeeding and should address any organisational dynamics or obstacles that might hinder their effectiveness. This could involve addressing issues with organisational structures or processes or current business problems that need resolution. Contrary to the common practice of bringing in a new leader to ‘fix’ problems, it can be beneficial to clear as many issues as possible before the new leader comes on board.
Addressing these challenges at an organisational level before the transition lets the new leader focus on guiding the business in a new strategic direction to drive growth rather than be immobilised by numerous distractions.
The overlap period between the outgoing and incoming leadership is also an important consideration. While the ideal duration can vary depending on the specific scenario, a six-month overlap is often sufficient for the incumbent to bring the new leader up to speed and ensure a smooth transition. In cases where such a long overlap isn’t possible, a minimum of three months is recommended.
It’s worth noting that leadership transitions always carry some level of risk. However, organisations can significantly increase the chances of a successful leadership transition by implementing these tactics.