US President Joe Biden’s exit from the Presidential contest is a timely reminder for all leaders to check their expiration date. Leadership is contextual, which means leaders outgrow their role or the role outgrows them. As organisations evolve, so do their leadership needs. An executive who was perfect for launching a startup may not be the best fit for guiding the organisation through its growth phase. Long-term executives can also become complacent, resistant to change, or overly attached to their strategies, stifling innovation and the organisation’s adaptability in the face of changing market conditions.
Leaders can stay too long in their roles because they are driven by ego and a belief that they are the only one best equipped for the role, fear because they are unsure of what’s next, or addiction to the power and money derived from the position. While holding ‘C-suite’ positions, particularly the CEO role, is often viewed as a marathon, not a sprint, sustainable leaders know when it’s time to pass the baton in a way that elevates their reputation.
Check Who’s Holding the Mirror
Recognising your expiration date requires self-awareness and humility, so it isn’t easy to do. Particularly given how feelings of power can cloud judgement. A 2010 study by the University of Southern California and London Business School (Power and over confident decision making) found there’s a correlation between over-confidence and how much power a person has. The more power a person feels, the more confident they are of the accuracy of their thoughts and beliefs. Consequently, people in powerful positions are more confident that their opinions are correct.
Consequently, you need people around you willing to hold up the mirror to help you challenge your perspective on your performance. Being open to accurately identifying gaps means you must hear the hard news and actively consider the constructive and honest counsel from those you trust. While surrounding yourself with ‘yes’ people may make life easier in the short term, it won’t help you make sound decisions on challenging issues.
Put the Organisation First
Accepting that you have an expiration date requires you to prioritise the organisation’s interests over your own. It requires being willing to put your ambition and ego aside.
It helps to always take the long term view, which means being alert to potential successors within your organisation and investing in their development. You are also open to change. It’s easy to get stuck in your ways and to see the traits that got you to your role as the skills and capabilities that will carry you forward. However, in a constantly changing world, success requires leaders to embrace the notion that successful organisational transformation requires not just change for those around them, but personal change for themselves.
Know Your Plan B
Careers are full of unexpected twists and turns, and while careers rise, they also fall. Sustainable leaders, therefore, know they must always have a Plan B. Your Plan B includes a sound financial plan, so you have strong cash flow if income levels change. It includes having a life outside your work so that you have support and interests to provide connection. It includes having ideas and options for the next steps.
Executive roles are often all-consuming, so finding the time for your Plan B can feel challenging, but the benefits outweigh the cost. Having a Plan B enables you to adapt swiftly to changes. It provides the flexibility to navigate through uncertainties, continue your professional growth and more easily move to what comes next.
Manage Your Exit – Elevate Your Legacy
A well-planned and gracefully executed transition elevates your legacy because it demonstrates your commitment to the organisation’s long-term success. It allows for a smoother transition, minimises disruption, and can ensure continuity of strategy and vision. It sends a positive message to stakeholders about the organisation’s stability, proactivity and forward-thinking approach.
There’s a saying that ‘True leaders don’t create followers; they create more leaders’, and part of that process is knowing when to step aside and let others lead.
Written by Michelle Gibbings.
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