Time to replace yourself?

From Les Trachtman, Woodbridge, CT

The issues touched upon are just the tip of the iceberg and are probably appropriate from a founder's point of view. But having been the replacement CEO for four different founders, as a successor to a founder you are often fighting an uphill battle trying to do things differently than the founder – especially when the founder is still peering over your shoulder. Often the founder/CEO may decide they need help, but not know how to accept it. In one of these companies, I used to joke that the founder encouraged me to initiate any changes that I thought were necessary as long as he agreed. This was a difficult charge, since doing only those things that the founder agreed with potentially doomed us to relive the past and not improve the business.

It is a unique founder indeed who is willing to leave a successor alone and let them make what the founder may feel are mistakes in order to take the business to the next level. In my experience, the founders who figured out how to get out of the way and give the new CEO the same full reign they maintained when they were running the show, are the ones who ultimately were able to reap the rewards of a successful liquidity event. The others were drastically different outcomes.

Of course you've got to have the courage and the foresight to hire the right successor. I am an advocate of "try before you buy" – hiring a successor CEO as a consultant or in a less invasive role before making a final succession decision. But continuing to hold tight on the reins after making that decision can compound the issues rather than solve them.

I've often considered that the best prescription for a founder who has determined that they need to hire a new CEO, is to get completely out of the way – which may require leaving the company – in order to empower the new CEO to make the necessary changes.

Large companies tend to understand this when replacing a CEO. Take the example of GE. Welch engaged in an extensive process to identify the appropriate successor. But when Welch stepped down from the role, he quickly extricated himself from the business altogether to enable Immelt to lead the company in an entirely new direction.

From Matt M. Helena Mt

In some instances i could see handing off my business to someone someday, i dont actually have a business but someday i wish to have a small car company, but to be honest i could never hand off my business to another persom, i would be afraid they took my eggs i was gonna make an omoulette (forgive my poor spelling) and just throw them on the floor. if i ever did hand off my company to some one it would have to be to someone who believes in what made my company, passion, design, power. no lil honda civic hatch knock-off, or smart car wanna be, a real car designed for real people with what a lot of people really miss. that person would have to share the passion of everything that the company stood for, not somebody that looked good on paper, acted and did well but didnt believe in it. would you listen to your minister if he didnt believe in god? i would rather own a tiny company that is what i wanted from the foundation to the ceiling, not some over sized company thats EXACTLY like every other company, whats the difference between ford and chevy? Dodge and Cadillac? not much really… most of the parts come from over seas, come from the same plant and the seats may as well have been on the same loom…