Leadership transitions in emerging businesses
Situation:
The Board of Directors of an emerging company were not satisfied with the performance of the Founder/CEO. While the founder was effective in the startup phase of the business, he lacked the leadership skills needed to scale the business and recruit key positions. The Board brought in a new CEO with the skills required to meet the emerging needs of the business, and the founder remained a Board member.
The new CEO demonstrated strong leadership in a number of areas. She was a highly effective operational leader and an effective external voice for the organization. Conversely, the Board found that she lacked confidence and strategic thinking. Plus, an unhealthy tension was building between the new CEO and founder. The Board began questioning if the CEO had the vision, strategy, and forcefulness to take the organization to the next stage of its development.
Action:
Executive nSight provided an executive coach to work with the CEO. The coach met with the Board Chair to gather initial information about the CEO’s performance and the founder dynamics. An assessment was conducted with input from the Board members and the executive team. The CEO used the information to identify her development goals and objectives. The coach simultaneously worked with the founder to fully transition him out of business operations and into a board oversight role. The coach met with the CEO regularly and with the founder to ensure a realigned and collaborative relationship.
Outcome:
The CEO’s progress was demonstrated by a change in her leadership style and a more commanding presence at the Board meetings where she delivered strategic perspectives and operational excellence. She became a more confident leader. The relationship between the CEO and founder realigned into a productive relationship that combined the founder’s technical expertise and industry savvy with the CEO’s ability to scale the business. The Board regained confidence that she was the right leader for the organization.
