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How A CEO Knows It’s Time To Go
When does a CEO know it’s time to go? Well, one way is when the board shows you the door.
But somewhere, when does a CEO know it’s time to go even though you’re still enjoying a good career?
If you are the CEO, no one but you can answer this question. But we can provide you with some clues as to what you should consider. Maybe it’s time to leave if…
- You’re not having fun anymore. Deep down you’re getting this fuzzy feeling: same old, same old. You find yourself sighing before, or worse, during meetings that used to light a fire. Your mind turns to golf or getaways or something, anything, far more often than ever. Leadership is a drag and you didn’t admit it to anyone but your dog.
- You have achieved all the organizational goals you set for yourself. Life is good. You and your team did it. Maybe even won accolades and awards. But what now?
- You cannot imagine what the organization will look like or where it will be in five years. Early in your career, the “vision thing” was a snap, but now it’s hard for them to see around the corner.
- It’s harder to make tough decisions. Fire someone? OK, if you felt it was legitimate and something the organization needed, you got it. Now, pulling the trigger causes more stress than the employee leaving. Do you want to close a program, product line or service? Much more nighttime anxiety than it used to be.
- You respond by saying “I fixed it five years ago” when the staff comes up with a new idea. After a while, the Chief Innovator can become the main obstacle to innovation. You’ve done it before and you don’t want to do it again, even when market gurus say “change” is the name of the game in the world’s economy is flat.
- Your skills no longer match the organization’s challenges or opportunities. You came as a builder, you built, and now what do you do? Or you are a finance assistant who redesigned the organization and made it profitable, but now the challenge of the organization requires a marketer, a visionary or a technocrat. The organization needs new blood and you no longer have the right blood type.
- You feel like doing something new. You always wanted to go out on your own. Risky? Yes, but oh, bring it on. You’ve counted down your years to 65 and want to spend them doing what matters most to you. You have accumulated assets. Now you want to accumulate experiences, or better yet, you want to give back time, talent and treasure. You want to serve
- You feel that you have allowed yourself or others to enter that dangerous zone where you or they confuse your identity with the organization. Founders are especially susceptible to this trap, but any longtime leader can fall victim to reading their own press. The danger to the organization is that the emperor has no clothes and no one can or will share the bad news. The danger for the leader is a potentially very difficult emotional adjustment when the break finally occurs. Less worship, less perks, no power. You forgot that the organization is not about you.
- You and/or the organization are under severe political or financial pressure. No one can be a CEO without pressure. Nothing new here. But now the pressure is at a level never before. Or the pressure comes from previously unwavering sources of support. Or the pressure is more about you, your vision or style, than the challenges of the organization. How bad does the pressure have to be for the CEO to know it’s time to go? It all depends. But when you shave or put on your makeup in the morning, look yourself in the eye and assess the question honestly. The organization may be better off without you.
- You are guilty of some kind of violation of professional ethics and you know it. There have been too many high-profile corporate and government scandals in the past decade to ignore the unfortunate possibility of this one. If the shoe fits, wear it, own it, change it, but don’t keep running from it. Prison is not a good retirement community.
- You are tired, physically, emotionally, mentally, maybe spiritually. There is no shame in being tired. When he announced his retirement, even Green Bay Packers quarterback Brett Favre said, “I’m mentally tired.” Tired doesn’t mean you’re old. It means you’ve given it your all and need a refresher.
- Your spouse, family or friends want more from you. Many executives advertise that they’re spending more time with my family, but that’s usually a convenient euphemism for “I’ll get out before they kick me out.” That said, family and friend considerations are real and worthy. It’s an old saw but with power: “Nobody chooses an epitaph that says, ‘I wish I’d spent more time in the office.'” Organizational leadership comes and goes, friends last a lifetime, families are forever.
Unlike political leaders, corporate and nonprofit CEOs typically do not work with term limits. When they leave is the decision of their board of directors or their own. CEOs, by definition, don’t have a lot of people telling them what to do. Therefore, the ability to recognize the clues that it may be time, and to consider them honestly with mentors and confidants, is a huge asset.
CEOs who stay too long are probably more common than CEOs who go before their time. We are creatures of habit. We like our home and the community. We have grown children and grandchildren nearby. It’s harder for us to make a change because the mirror says we’re getting older. It’s not sinister. It is human.
However, CEOs who overdo their effectiveness or their enthusiasm aren’t doing anyone, least of all themselves, a favor. Our egos and insecurities tend to make us forget that leadership is a temporary administration. It always comes to an end. The trick is to end when it is in everyone’s best interest.
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