1. Seek the outgoing CEO’s candid assessment of the position. If your CEO is leaving on good terms with the hospital, you should involve the departing CEO in the selection of a new executive, Mr. Troutman says. “I think getting that person’s input is important because nobody knows that job and knows the critical interactions with board members, medical staff, key executives and key non-management employees better than a good CEO,” he says. To take full advantage of the outgoing CEO’s knowledge, seek his or her candid opinion of the position. Let him or her review expectations and incentives for the new CEO and talk about the major challenges of the position.
2. Talk to key hospital players about the outgoing CEO’s strengths and weaknesses. “One-on-one discussions with the hospital board chairman and key chairman of board committees will be helpful to understand [what went on while the former CEO was with the hospital],” he says. “You should also get perspectives from the chief financial officer, chief nursing officer and chief human resources officer, as well as the CEO.” These people can help your board identify the outgoing CEO’s strengths and weaknesses, so you can decide if you want to pursue the same qualities in a new candidate.
These people can also help you evaluate the upcoming challenges for the hospital, so you can tailor your search to find a candidate who can overcome them. “Think about the issues you need to bear in mind,” says Mr. Troutman. “Are there particular issues coming up? For instance, is there a new competitor coming in? Are the unions pushing hard to get into the hospital? You need to consider all these things.”
3. Schedule time for the incoming and outgoing CEO to meet. If a CEO is retiring, he or she may have some time to spend with the incoming CEO, going over the day-to-day aspects of the job and passing on advice. If the CEO is leaving for another job, that time period will probably be more constrained, but either way, try to schedule some mentoring time so the new CEO can learn from his or her predecessor. “Map out a plan for some passing of the baton and meeting key people in the community as well as on the board,” Mr. Troutman says. “You want the new CEO to learn some of the history with key issues — not just things that are officially in the strategic plan, but things that are happening in the community, competition and new services the hospital may be contemplating.” There will almost certainly be guidelines or best practices that are not written down, and you can take advantage of the departing leader’s knowledge to ensure the best possible start for your new executive.
Don’t stop there: read 4 Ways to Transition Between CEOs When the Outgoing CEO is Leaving on Bad Terms.
