Over the holidays I was catching up with a former CEO. He said one of the biggest challenges for him was knowing when was the best time to leave the top spot.
A 2013 study by Xueming Luo, Vamsi K. Kanuri and Michelle Andrews at the University of Texas, Arlington suggests that long tenure can actually hurt a company’s performance. Their work suggests new CEOs are more open, inclusive, and search for new solutions.
All CEOs should be held to performance standards. These standards tyipcally focus on financial and growth rates. Do other standards exist to address this issue?
The greater the need for succession, the higher the likelihood the organization in question under that leader is hyper-hierarchical and non-inclusive of the ideas and efforts that make up the organization as a whole.
If a leader has done a top job of opening the culture to transparency, accountability and respect, things shouldn’t skip a beat when the CEO steps out.
- CEOs Tend to Overstay Their Welcome, Hurting Firm Performance, New Study Finds (newswise.com)
- CEOs: Why You Should Quit While You’re Ahead (inc.com)
- Horrible Bosses – The Worst 5 CEOs of 2013 (investorplace.com)