How Can A CEO Bow Out Gracefully?

Mon, Nov 16 06:32 PM

Klaus Kneale, Forbes.com

Chief executives always have a lot to worry about. They can't even quit without making sure they handle the process with a very delicate touch.

Succession planning is a common subject among CEOs, boards, directors and consultants, but assuming your succession planning is all taken care of, how best can you handle your own departure?

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Nathaniel Stoddard, chairman of executive development at Crenshaw Associates, an executive development consultancy, says his No. 1 piece of advice is, "Avoid giving a swan song." Often a departing individual will send a heartfelt e-mail to everyone in the company about how wonderful the people have been, how great the job was and how sad he or she is to leave.

That is often awkward for people to read and talk about, Stoddard says, has little effect on anyone and may even get in the way of creating a welcoming atmosphere for the new chief. Goodbyes are better done individually and in person, he says, not electronically. After all, anything both heartfelt and done by mass e-mail is contradictory by its nature.

It's generally best that you take leave quickly. Dawdling can only hurt, especially if you've been fired or decided to move to another company. Sticking around invites the venting of bad feelings, and that never helps.

"It's not the time to clear the air," Stoddard says. "If the company didn't treat you well, people will know." Behave your absolute best when on the way out the door. The last impression you leave with people may be the strongest one they keep of you. Make sure it's a good one.

There is some balance to be struck, though. Walk--don't run--for the door. Having a smile and carrying yourself with dignity isn't just good for you, it's good for the emotional health of the organization, Stoddard says.

You won't always be stepping out the moment the company says you're leaving, especially if you've simply announced that you're retiring from your career. In that kind of situation, you should alert the board in advance, which could mean three months or even two years, depending on the circumstances. Then as you approach your exit date, don't expect to be making a lot of big decisions without getting serious scrutiny.

"The reality is that once you or the board decide you're out, you're a lame duck," says Joe Griesedieck, the managing director of CEO & Board Services at the executive search firm Korn/Ferry. "You won't make substantive decisions, nor should you."

Don't expect to your power to remain undiminished up to the last day, either. As your end date nears, you may notice that people don't laugh at your jokes anymore. Griesedieck says you need to just continue to focus on making decisions in the best interest of the employees and shareholders.

When it comes to meeting the new incoming chief, above all else keep your cool. Assuming you aren't being forced out, you should freely offer help in getting the new boss acquainted with the company, Stoddard says. Doing so is a simple courtesy--even though the incoming CEO shouldn't accept the help, nor will he generally want it. After all, that person is the boss now. Still, your gesture will help make the new chief feel more welcome and comfortable.

As with any other job transition, keep your contacts alive. Don't burn bridges. You always might want to return to the company in some other role, and this probably won't be your last transition. This is especially true if you're being pushed out. "You will still have had a public failure, and it's hard to come back from," says Griesedieck, "but it's not a total kill to your career." So give yourself all the help you can get.

A minor grudge expressed aloud now could become a pretty big obstacle on the way to a future job interview.

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