How to manage a smooth transition at the top

Q: It’s time for one of our most senior directors to move on. She’s done a great job but is also a huge personality and now she’s holding us back. What can we do?
A:Peaceful leadership transition is tricky; fortunately it looks like the US managed to pull it off this time round.
I’ve worked in businesses where a charismatic leader leaves a huge imprint. The business becomes so accustomed to a certain style of leadership that it’s difficult to accept anybody new.
Companies make transitions more painful than they need to be; for example, by allowing a previous, successful leader to hang around for ever. They often cast shadows that can make a smooth transition much tougher. We’ve seen this happen at companies from Disney to Manchester United.
Once you’ve decided on a succession, it’s best to clear the decks and let the new person get on with it.
You should not let the departing leader choose her successor. She’ll probably pick somebody in her own image (most likely from within) and this will, in effect, be giving the message: this job should be done exactly like I did it.
For an orderly transition you need good, independent recruitment and handover processes. The board must make sure the business isn’t in a situation when it has to act in a kneejerk way. Especially if a company is in turmoil, the previous boss needs to get out of the way and allow the board to look outside for a fresh outlook.
Mistakes may happen with appointments, but you want to avoid a series of missteps that undermine faith in the whole institution. We’ve seen trust in political entities in particular decline dramatically and that’s often down to poor leadership of previous incumbents.
While a business probably doesn’t want to recruit a carbon copy of the previous leader, it’s also important that the new boss respects the legacy of their predecessor.
In general, unless the company is in crisis, an incoming leader shouldn’t start by torching everything their predecessor did. Only if you’re in a turnaround situation do you need that burning platform.
It’s important to remember, not all successions are the same. A new leader may be taking over a positive situation or a basket case: they’re both challenging but in different ways.
Just one final thought for the departing leader. If things work out well at the business after you’ve gone, then you can bask in the reflected glory. If they don’t, then best to hold your tongue. Don’t trash your legacy by behaving like a sore loser.
Ann Francke is chief executive of the Chartered Management Institute