The Right Way to Step Down as CEO

When news breaks of a CEO succession, much of the attention is given to the new leader and how they will change the company. But new research shows that the leave-taking process of the outgoing chief executive is often mishandled, with negative impacts on succession and the organization. Rebecca Slan Jerusalim, an executive director at Russell Reynolds Associates, and Navio Kwok, a leadership advisor at RRA, say that boards are often surprised when a CEO gives notice, and they often make that person feel excluded during the handoff process. The researchers share stories from the front lines about CEO psychology, best practices for outgoing leaders and their boards, and broader lessons for effective transitions. Jerusalim and Kwok wrote the HBR article “The Vital Role of the Outgoing CEO.”