No One Was Steering the Ship!
After 30 years at the helm, the founders of a small hydro engineering firm were finally ready to pass the torch. The plan seemed simple: two long-standing leaders would step down, and three promising insiders would step up.
Unfortunately, the plan had some major flaws.
The selected CEO replacement confessed, “I don’t even know what a CEO does.”
The projected CIO reached out to us on behalf of her colleagues, not for coaching or training—but for an intervention.
What looked like a clear path forward on paper was, in reality, a foggy maze of unspoken assumptions, undefined responsibilities, and mounting anxiety on the part of the “new C-suite.”
The Hidden Gap
While there was a financial and title transfer plan, there was no roadmap for responsibilities, leadership handoff, or how the new C-suite would lead.
No formal job descriptions existed for any of the C-suite roles.
The rising leaders had no replacements identified for their current roles.
The organization lacked mid-level talent due to having no employees with 10–20 years of tenure—a clear sign of future succession problems.
To make matters more complex, authority had been decentralized to a “management team” based on ownership shares. Decisions were made collaboratively—but with no clear accountability or direction.
The rising CEO wasn’t wrong to feel apprehensive. No one was really steering the ship.
Lessons Learned
Titles changes do not equal succession plans. A successor needs clarity around authority, responsibility, and expectations—not just a new business card.
A culture of collaboration without accountability leads to leadership drift.
The missing middle—having a gap in employee tenure and experience means you might make it through the first succession with the current “cast,” but the company will not survive a second.
Actions You Can Take to Avoid the Fate of This Company
Start planning leadership changes early. A 24-36 month leadership handoff allows time for mentoring, coaching, and course correction. It gives everyone involved more confidence.
Document roles and responsibilities. Create job descriptions not just for legal compliance, but to clarify scope and authority. Be sure things like “budget responsibility” are clearly spelled out – is that approving the budget or creating the budget?
Look beyond the C-suite. Develop a leadership bench at every level, especially mid-career professionals.
Make succession an on-going agenda item at senior leadership meetings—if you talk about marketing and operations and finance regularly… why aren’t you regularly talking about succession planning?
Succession is more than naming a successor. It's preparing people—and the organization—to thrive without you.
