Tuesday, April 29, 2008

Is a Successful Leader Replaceable?

Many times, you hear people talking about replacing a legend and how difficult it is . . . whether a popular and successful CEO like Jack Welch, or a legendary coach who retires after many championships. As they say, it would be a hard act to follow as expectations are high for continued success but the new leader needs to build their own team, culture and vision which may take time. Who else has read Machiavelli?

This is the dichotomy. On one hand, continued great success is expected but a change is needed and usually takes time to happen. Consequently, new leaders end up "failing" because they did not continue the success or their vision did not get implemented fast enough.

So, there are three things that can happen:

1. Maintain the course the previous successful leader was on

This approach could be successful in the short run but this means that the new leader has the same philosophy and culture as the previous one. If not, there will always be comparisons (which is not right). They are in maintenance mood and are typically a focused on maintaining what the unit has done (becomes defensive and in "not to lose" mood), this overtime will suffer because of lack of vision because of the ubiquitous (oh, look it up, yes, I can use big words too!)nature of business.

2. Have a new leader that will initially be disruptive (one that is outside of the current "regime")

This sends a clear message that senior management wants a change in direction from the previous leader and therefore a new vision and possibly new change in a leadership team. This hiring strategy is risky, as staff wonder if they actually belong in this new team. The upheaval of this approach can be fairly tramatic, but there is an upside, if the current path of the business was not going to be sustainable, this approach might be best to "shake things up" and send a message that there is a new sheriff in town and we are moving in a different direction.

3. Hybrid approach, select someone that the current unit knows and appreciates but who also can spin a new vision based upon the foundation that has been provided by the previous leader.

This is the best strategy in my book. Selecting a new leader who is respective by current team, but smart enough to provide a new vision in the six months is the right approach in my opinion. The leader can maintain the existing success, but gather the team together to say what do we want the business to be in five years, which may or may not be the same path the unit is currently on.

As I have mentioned in previous postings, the new leader needs integrity above all else. Any leader who is not seen as having integrity (and out for themselves) will surely fail.

It is interesting because some "legendary" leaders have been so successful that their senior management cannot "touch them", and has to live with them even though they want that leader to leave or retire (this is true of those new senior managers who came in above the leader and had no say so in their hiring). The successful leader can be bold, question authority because of their past success, but this makes the new senior management uncomfortable. So, senior management cannot force the successful leader to retire (how would that look?), so they have to live with it, or cause that successful leader so much difficulty that the leader ends up saying enough is enough, I see the writing on the wall. And leaves.

From Machiavelli (Prince)

A good ruler will invariably choose competent companions who offer honest advice in response to specific questions and carry out the business of the state without regard for their private interests; such people therefore deserve the rewards of honor, wealth, and power that unshakably secure their devotion to the leader. Ineffective leaders, on the other hand, surround themselves with flatterers whose unwillingness to provide competent advice is a mark of their princes' inadequacy.

How is your organization? does it try to surround itself with flatterers? Will the selection of the new leader be a "yes person" or serve as a leader with integrity and doing the right thing!

Bottom Line: A successful leader is replaceable, if it is done in the right way and selecting the right person who can "be their own person" and has the respect of the staff but also can build upon the existing foundation of success with their own vision of the future.

1 comment:

Sherri said...

Everyone can be replaced. Easy as that. But with replacement comes change. You were able to go out "On Top". This is a very cool way to leave. Not many people are fortunate enough to do it this way. Very few people are smart enough to leave while successful.

I've never thought of anyone in my company to be flatterers. Many are silent and won't speak up. But there are some very vocal colleagues that are willing to question the status quo. This is how success happens. This is how the dialogue begins, ideas are generated, and the best are socialised and instituted.

If the new leader has been part of the existing group, they would do well to encourage the continuace of this exchange of ideas and questionning. If the new leader hasn't been a part of the existing group - the dynamics could change completely. Will some of these strong-willed colleagues leave, be stifled, or continue to question? Will others that have been quiet become the flatterers? Gee whiz, I hope not!