The Art of Communicating CEO Succession
I've been there. Sitting in a boardroom, the air thick with anticipation (and maybe a few last-minute questions from the Board), as we prepare to announce a new CEO. It’s a pivotal moment for any company, and how you communicate it can make all the difference.
A CEO transition is a golden opportunity to set the tone for the future, brand the leadership style of the CEO and send a clear message to stakeholders about what to expect. It also requires a delicate balance of honouring the outgoing CEO, paying tribute to the heritage of the organization while maintaining a focused eye on the road ahead.
Crafting a Decisive Narrative ‘Bumper Sticker Statement’
It’s not uncommon for Boards and HR heads to focus on the incoming CEO’s CV or experience. Of course, track record is important but that’s a proof point, not the driving narrative of the announcement. It all starts with a crisp narrative. What framing or feeling do you want stakeholders to take from this move? It could be “Continuity,” or “Driving Innovation” or “Master Operator.”
Media, analysts, and CNBC pundits will try to affix a label to the transition. Beat them to the punch by framing it for them. Put that 'Narrative Bumper Sticker Statement’ in the header of your communications plan as your North Star and ensure your approach, tactics and messages bring it to life.
Plan, Then Plan Some More
The Touch Plan is the master schedule for your announcement, mapping the days and weeks leading up to announcement day and for the weeks that follow. It ensures all the requisite heads-up conversations are sequenced, the fast-follow conversations to VIP investors, regulators, political officials and customers are executed and that feedback and questions are addressed. The Touch Plan acts as air traffic control for sequencing the distribution of your communications pieces.
When it comes to tactics, don’t focus solely on the obvious: press releases, bios and a Q&A. Those are table stakes. At H&K, we believe it’s critical to develop tailored communications to address the specific needs of different audiences. One of the larger and more complex CEO communication strategies I led had a materials list with more than 30 distinct communication vehicles — including video messages, social media posts, town hall scripts and digital thank you cards from the outgoing CEO.
What Do Your Key Audiences Need to Hear?
Remember that different stakeholders have different perspectives and priorities. And on occasion, that might mean message conflict. An incoming turnaround CEO focused on austerity and restructuring will likely have compelling investor messages that won’t land the same way with employees. Mapping out message conflict and calibrating messages among stakeholders is critical.
“A Picture Is Worth a Thousand Words” Is a Cliché Because It’s True
Recommended by LinkedIn
Images matter. The image is one of the most tangible (and powerful) reinforcements of your narrative. I strongly recommend new, original photography. The CEO image you provide on announcement day will likely run in every media story about them and before every CNBC appearance for the rest of their tenure.
A well-designed image and background will reinforce your CEO’s and your brand’s narrative for years to come. Consider the setting as much as wardrobe — do you want them in the board room, shop floor or with employees? If your narrative centres on ‘Innovation’ or ‘Customer Centricity’ get them out of their office!
Execute Flawlessly
I believe execution is deeply undervalued. Attention to detail and tightly sequenced and coordinated execution truly makes for an impactful CEO succession communications plan. In short, demand perfection — it’s the defining moment in the CEO’s career and in the history of the organization.
Remember They’re Human
Be sure to build some break time into the touch plan. Even the most stoic incoming or outgoing CEO can be surprised by their emotions during this period of change. Hearing heartfelt messages from employees wanting to say goodbye and thanking the long serving outgoing CEO for their service can be particularly touching. Giving the leader an occasional pause with down time allows them to refocus, recenter and be on for their next audience.
Beyond the Announcement: How to Ensure a Smooth Transition and Continued Success
Announcing the new CEO is a significant milestone, but it's not the finish line. The real work begins after the news is out.
Continue to communicate regularly with stakeholders, providing updates on the transition progress and celebrating early wins under the new leadership. This ongoing communication reinforces transparency, builds confidence, and refines their leadership brand.
Written by: Neil Parmenter, ICD.D , SVP & National Lead, Advisory & Corporate Communications.
Leadership, Executive Coach, Team Facilitator, Strategic Advisory
3moNeil Parmenter, ICD.D Tailoring the message with things that matter for differing stakeholders while not sacrificing alignment with the core narrative and brand attributes and values that you wish to convey is rarely done well by internals alone. If your not reaching out for professional assistance you're likely failing with one or more stakeholders. Having been in an executive group where the shareholder and board brought in an external CEO, I can attest first-hand that internal communications specialists have no idea what the shift might be in the minds of the board and shareholder.