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 An Introduction
One of the perplexing challenges in growing a healthy and viable tech industry is finding ways to transition from a founder/CEO to a more experienced CEO who can continue to grow a company. There is no simple answer because the same qualities that make founders successful in creating new companies are often the same qualities that restrict full realization of a company’s potential.
In most cases, hiring a new CEO within a small company where the founder will remain active is a setup for failure. However, it isn’t due to lack of clarity or understanding of business issues.
It is also accepted that this entire process is tough on the founder and best efforts are usually made to mitigate the trepidation but, as the results prove, something is still missing.
Earlier this year I had a follow up conversation with a founder/CEO we had replaced six months earlier. We thought that he had handled the process better than most and, based on the positive results and praise from the board and new CEO, I complimented him on how he handled the transition. He then proceeded to tell me how the process felt for him and what it took to get through it.
He cited the usual concerns about giving up control, as well as the real and perceived risks associated with having someone else run "his" company. Then he said something that I had notably underestimated. He described the uncertainty and emptiness of being replaced. There seemed to be some sense of failure, some concern about his future, and lot of what he saw as "everyone is getting what they want except me".
What was particularly interesting about this scenario was the decision to hire an executive coach, who appeared to have the following objectives:
- Help the new CEO deal with the challenges of the transition
- Help the founder/CEO deal with the challenges of the transition
- Help the founder identify the skills he or she lacks to continue as CEO and, where possible, work on improving those skills
- Work with the founder to sort out personal goals and aspirations
Although many organizations have used executive coaches to help with the transition, this example seemed to be the most successful. In my opinion, the reason for this success was the strong and effective focus on the founder as a person and on their skills development, as well as on transition assistance.
To explore this further I would like to introduce you to our newest newsletter author, Jim Vollett. Jim has 25 years experience working with the senior ranks of some of the top organizations in the world. While working in venture capital, Jim discovered that far too often, the growth in successful companies eventually stalled. We look forward to his insights.
By Don Safnuk, Corporate Recruiters Ltd. Don can be contacted at don@corporate.bc.ca
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