Q & A from Linked-In on how to successfully handle CEO transition, major obstacles, and change issues.

This goes for a friend, who has taken over as a CEO of a very large established National Logistics company infested with malicious politics , dipping revenues , incompetent staff and old horses ...How does he wriggle out of this mess as a victor ? what strategies you suggest for business development / staffing and management .Lets talk above the cliched one liners of axing the grind with the staff ...trees with deep roots DO NOT fall easy! Jan 2009, Linked-In.  Ashish B International BIZ ,SCM + LOGISTICS - STRATEGY



Answer:  Outsource the Change Execution

In order to be successful, your friend the CEO will have to make some tough decisions that will likely cause internal turmoil that will be hard to survive politically. Even though the ultimate actions (if taken from the answers on this forum) will tremendously help the company, he will be stained by the effort, and probably won’t survive to see the results of the efforts. I have seen this situation happen before.

I would strongly recommend that you friend “engage” an independent consultancy to act as a layer and buffer between the hard changes that need to be made, and the role of Chief Executive Officer. This way, your friend can remain above the infighting and pain caused from the significant changes that must happen, while quietly directing the actions. When the transition has completed, the independent consultancy (who at this time should be properly despised by the entire organization) can disengage, leaving the CEO in good standing with the company, board and shareholders. Recommendation by Lewis Kilby Business Consulting and Solution Delivery: Supply Chain, Logistics, ERP, RFID

Three Lettters Parable

(This is not my parable and I forget the source so please forgive me if I butcher it a little). Harlan Cohen MBA, CPIM Information Technology and Services Professional

The ex-CEO was waiting for the arrival of the new CEO in his office. After providing his congratulations and commiserations the ex-CEO reached into his coat and drew out three envelopes.

"You'll notice they are numbered One, Two, and Three. Open each one in turn only when you're faced with an insurmountable crisis."

The two spoke together a little longer and the ex-CEO departed.

The new CEO went to work and being a reasonably competent executive managed to make his way through this first few crises without resorting to the letters. In fact, he had almost forgotten about them when a massive crisis was discovered. While pondering his choices he remembered the envelopes and wondered what advice his predecessor could have provided that would apply.

"Blame your predecessor", it read.

And so he did. On that occasion and a couple others as well. Together with other practical advice, he succeeded in overcoming the crises and enriching the shareholders.

And then he came to a crisis where he would be unable to blame his predecessor and maintain his credibility. He went to the second envelope.

"Blame your employees", it read.

Not seeing any other alternatives that might maintain him in his position, he did just that. And by finding worthy people to blame actually managed to survive the crisis and redeem himself with the shareholders.

And as otherwise unsolvable problems arose, he continued to blame his employees, although he sometimes noticed the ones he blamed were not largely at fault for the crisis at hand.

Eventually a third monumental crisis arose, so severe it threatened the very existence of the company. After many sleepless nights the CEO decided to open the third envelope.

"Prepare three letters", it read.

And so he did.