CEO Succession

Before: CEO Succession Confusion Creates Concern for Large Private Equity Firm

"My venture capital organization had a significant interest in a promising software firm in Silicon Valley. The company was previously privately owned and run by the founder. After a short talent search run mainly by the board of directors, a new chief executive was selected to take the company to the next level. The plan was for the founder to retire after a short transition period. Before too long, however, members of the board began receiving disturbing reports of problems occurring during the shift in leadership. We weren’t quite sure what the problem was, but many of us suspected the founder was having problems letting go. RHR International had been highly recommended by a networking partner, so I asked them to come in and assist us in understanding and resolving the CEO succession issues before they could impact the business."

After: Partnership with Venture Capitalists Defuses CEO Succession Conflict

"We began by interviewing the founder, the new CEO and a sampling of employees to get a clear sense of what was happening. The interviews indicated that the founder was being quite cooperative and reasonable about the succession process. They also revealed that the new CEO had alienated a large number of employees. Based on these facts, RHR consultants did an in-depth executive assessment of the new CEO, which indicated he was not a good fit for the culture.

"We shared our findings with the board members. Upon receiving the recommendation, they terminated the incumbent CEO and implemented a new CEO succession plan. The RHR team created a Profile of Success™ for the Chief Executive position and interviewed the top candidates. One was recommended to the board as an excellent fit. The candidate accepted the offer and successfully took the company forward."