McKinsey Q, June 2010
McKinsey’s former managing director Ian Davis offers to new CEOs advice distilled from his experience supporting executives during their transitions into the role.
He jots down the key points with his suggestions focused on making a successful leadership transition—not on the role and attributes of a successful CEO. They are based primarily on personal observation of many CEO transitions, as well as on interviews with a number of leading CEOs and chairmen from around the world.
1. Context is critical. He advices new CEO’s to quickly learn about the history, board structure, governance, and national heritage of the company, as well as its financial performance, morale, and capabilities. Then look at this context through the eyes of other constituencies and stakeholders.
2. In his view, the first 100 days is an arbitrary number to be treated with skepticism. No decisions should be made for strategy or people or core control processes when one is not confident in their knowledge. The key is to be thoughtful and purposeful about your transition time frame and to be very clear on what you believe would constitute a successful leadership transition. Set specific transition goals
3. A critical task early on is to establish priorities. Take time to decide which commitments and meetings you want to attend, bearing in mind the signaling effect your decisions will have.
4. Time will be a big challenge, since truly discretionary time will be limited. Everyone internally and externally wants a piece of you. Be ruthless on the use of your time and on what you will and won’t do.
5. The most important job is to construct your top team and build relationships with key people. You will need to get to know the current team and to understand their motivations, capabilities, attitude to risk, and ways of operating. Be open minded and take time to reassess initial impressions or previous experiences.
6. Do not underestimate the importance of building a professional, respect-based peer relationship quickly with your board and, particularly, with your chairman.
7. The quality and credibility of your direct support team will be key. Your choice of personal assistant and of the support office and technical infrastructure around you will be among your most important (and sometimes most difficult) early decisions.
8. It is advisable to develop—early—a clear transition communications strategy, both for internal and external audiences, recognizing that what appears in the external media has a bigger influence on internal and board perceptions than you might initially think. Consistency of message is key.
9. A perennial challenge for all in positions of authority is how to get objective, balanced feedback and information.
10. Finally regarding personal priorities and ground rules. The CEO role has the structural potential to be all consuming. There are some tips and techniques that might help. It’s important to establish early on how you are prepared to live your CEO life, at least when you are not in those occasional situations that require a 24/7 commitment.
1. Have I reflected on the context of my transition—not just from my own perspective, but from that of all key stakeholders?
2. Have I established in my own mind the time frame and intended outcomes of my leadership transition?
3. Have I established my initial set of priorities with a full understanding of what others expect of me?
4. How will I control my agenda and allocate my time?
5. Have I developed a clear process and time frame for selecting my top team?
6. Have I committed sufficiently to building a relationship with my chairman and board?
7. Do I have a mechanism for building the necessary support office and infrastructure?
8. Have I thought through my communications plan—internal and external?
9. Do I have a mechanism for getting balanced feedback and information?
10. Have I established appropriate personal ground rules?
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