The successor's dilemma.
Botched leadership transitions occur with alarming frequency--a fact that's laid bare regularly in the business pages of the nation's newspapers. The headlines trumpet the premature departures of designated successors--leaders such as Merrill Lynch's Herb M. Allison and AT&T's John Walter, who left their respective companies before they could claim the CEO's seat. Dan Ciampa and Michael Watkins, who have counseled senior executives and successors through more than 100 leadership transitions in the past 25 years, point to the successor's dilemma as the dominant cause of failed leadership transitions. The dilemma is an emotionally charged power struggle played out between the CEO and his would-be heir. Ciampa and Watkins describe the way the problem builds on both sides of the desk--the CEO's fear of giving up control versus the designated successor's need to enact the changes expected of him and prove himself to the board. They cite anecdotal evidence and their own research to suggest that this complex psychological dynamic leads CEO-successor relations astray and can block the successor's path to the top spot. But the authors also offer four ways for the would-be heir to overcome the successor's dilemma. These include gauging the CEO's readiness to leave before accepting the number two spot, maintaining regular communication with the CEO despite ever-present obstacles such as travel and business schedules, and developing and using a balanced personal advice network to help navigate the shift in power. The authors stress that defusing the problem is the responsibility of the successor, not the CEO. The reason is simple: the successor has the most to lose.
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