Q012
What’s the role of the
outgoing leader?
our take .
First, let’s talk about what the outgoing leader’s role shouldn’t look like. You and the company are likely to be happier if you avoid both the Monarch and the General mentalities. (Reminder: Monarchs believe that they’ll be in their chair until they die, and are generally bitter and disaffected when forced out, while Generals deal with the loss of identity as a leader by plotting a way to return.) Instead, consider the Ambassador, who leaves gracefully, serving as a mentor and providing continuity and counsel when needed. These leaders are content to go, but are also delighted to take a call or go to coffee. At the end of the day, they care more than they desire control.
As a general rule, if an outgoing leader wants to remain active, we recommend they find something specific and novel to contribute, whether in developing new products, finding and standing up new locations, nurturing a fledgling business line… The point is, you can’t lead vision and “not be in charge.” Whatever you do once you leave should be based in how well you know the core, but not be the core if someone else is going to be in charge.
on paper.
character to consider: Jack Welch
Control, legacy, obsession
Call it what it is: One of the most talked about, analyzed, and speculated on leadership transitions ever. The 2001 switch from Jack Welch to Jeff Immelt as GE’s CEO was years in the making, with Welch controlling every aspect of the search, training, and switch. And, if nothing else, that meant leadership development started early. But more than that, Welch was keenly aware of his legacy (built on 20 years at the helm of GE), and one major goal of his succession plan was to cement it. By personally orchestrating the process, he effectively kept the spotlight on him as a decisive and visionary leader even as he exited. Welch’s insistence on continuity – selecting someone who would extend his vision rather than redefine it – underscored his need for control. Sometimes, CEOs gonna CEO. The impulse to shape the future of GE from the sidelines inevitably backfired in a changing business environment.
A cult of performance and a horse race to the top
Commitment to meritocracy is one thing, but a Hunger Games-style successor selection process is something else entirely. The gladiatorial environment pitted three candidates – Jeff Immelt, Robert Nardelli, and James McNerney – against one another in an intense and highly visible competition. Did it cultivate exceptional performance in the short term? Sure. But it also stoked rivalries that had lasting consequences (as in, both Nardelli and McNerney left GE to lead other major corporations, taking significant talent and institutional knowledge with them). In trying to seal his legacy (see above) as relentlessly focused on producing measurable results and GE itself as a proving ground where only the best survived, he created a zero-sum game.
Double-edged charisma
What works in one era can hamstring the next. Welch’s larger-than-life persona, central to his success at GE, overshadowed Jeff Immelt, making it nearly impossible for the new CEO to step out of Welch’s orbit. Add to that Welch's very public critique of Immelt’s decisions in later years, and you get the feeling he struggled to let go emotionally, viewing the successor’s (poor, in his estimation) performance as a reflection on his own judgment. This need for validation – wanting his choice of Immelt to prove “right” – coupled with a need to be needed – wanting to be the only one who could do the job – revealed Welch’s personal investment in the outcome beyond professional concerns.
Works consulted:
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