A CEO’s tenure can be defined by four key stages, beginning before they are selected for the role and ending when they pass the baton, according to a Sept. 9 McKinsey article.
The article features insights from the authors of “A CEO for All Seasons: Mastering the Cycles of Leadership.” The book was based on interviews with more than 30 prominent CEOs.
Here are the four stages, according to McKinsey senior partners and authors:
1. Stepping up. This stage ideally begins two to three years before the interview and involves understanding what the CEO role entails. It also includes self-reflection on expectations and motivations for the position, asking questions such as, “Why do I want the job?” and “What would I love to do with the role?”
2. Starting strong. The second stage — stepping into the role — can feel unfamiliar and isolating for some leaders. CEOs can leverage others’ expectations for change by listening before acting, reassessing their understanding of their role, and prioritizing first impressions.
“Becoming CEO is not the finish line,” Sam Hazen, CEO of Nashville, Tenn.-based HCA Healthcare, told McKinsey authors. “It’s the starting gate.”
3. Staying ahead. Many CEOs perform well during their first three to four years, then encounter a “slump.” To avoid this, McKinsey authors said top-performing leaders do three things: They maintain an outsider’s perspective, continue learning and prioritize succession planning.
4. Sending it forward. Effective succession planning varies by organization, but it often involves a structured transition. For example, it might entail a nine-month plan with the exiting CEO leading for three months, followed by three months of joint leadership, and a final three months with the new CEO at the helm.
Hospital and health system CEOs have told Becker’s they focus succession planning efforts on flexibility, finalizing key projects and aligning stakeholders around the qualities needed in their next leader.
Robert Brenner, MD, president and CEO of Paramus, N.J.-based Valley Health system, told Becker’s in May his goal is to leave the organization stronger than when he started.
“That has to do with succession planning and making thoughtful decisions about long-range planning for the organization, and I want to make sure that the things that we put in place are enduring, operationally sound, mission-driven and resilient,” he said.
