This article is informed by and builds upon original reporting and data analysis by David Lambert in “Record CEO Exodus in Early 2025,” published on The Business Growth & Blueprint Project (June 2025). Full piece here.

The corner office has become a revolving door. As breakneck technological innovation, economic uncertainty, and pressure on business leaders reach new heights, CEO turnover is at record levels. Boards and organizations that want to navigate this new leadership landscape can ill afford to ignore the trends at play.

This report aims to break down the data, identify the forces driving this shift, and present a blueprint for CEO succession that positions organizations to not just survive but thrive amid CEO turnover.

The Numbers: Record CEO Turnover in 2024

In 2024, a record 202 CEOs departed the world’s largest publicly listed organizations, a 9% increase from the prior year. Among the S&P 500, 58 CEOs departed in 2024, a 21% year-over-year increase. Turnover has further accelerated in early 2025, with 1,563 CEOs leaving their roles across all companies in the first 8 months.

For boards and organizations, these are not just statistics but flashpoints that can upend strategic continuity and define a company for years to come.

What’s Driving This Leadership Churn?

Technology as Catalyst

The technology sector experienced the greatest spike in CEO turnover in 2024, with 40 departures in S&P 500 technology companies, up 90% from the prior year. Artificial intelligence and digital transformation are not just business trends but true necessities, requiring leaders with experience driving organizational change at scale and with a deep enough understanding of technology to set informed strategy. This rarefied skillset is in high demand and leads to shorter tenures.

Investor Pressure

Boards are giving CEOs dramatically less time to prove themselves before making a change at the top, with nearly 40% of all departing CEOs in 2024 having been forced out. Investor patience is evaporating, activist investors are empowered, and new CEOs are under the gun from day one to show immediate results.

CEO Burnout

A recent survey found that 71% of CEOs experience burnout some of the time, with 32% reporting they feel burned out frequently or daily. The job has fundamentally changed: CEOs must satisfy shareholders, employees, customers, regulators, media, and the public all at once while navigating pandemic aftershocks, supply chain issues, inflation, labor shortages, and AI-driven transformation. It is an almost impossible job, leading many to retire rather than serve another term.

The Interim CEO Economy

One of the most noteworthy trends of 2025 is the dramatic increase in interim CEO appointments. In Q1 2025, interim appointments accounted for 18% of all incoming CEOs, up from just 6% in 2024. This trend points to a hard truth that many organizations lack a bench of ready internal candidates when a turnover event occurs. Rather than quickly naming a permanent successor, boards choose to appoint an interim leader as a placeholder while a more deliberate search is conducted.

The result is often a vacuum at the top papered over with an interim appointment. Boards must resist this band-aid approach and make building bench strength their top priority.

First-Time CEOs and New Challenges

85% of all incoming CEOs in 2024 had never previously served as CEO at a publicly listed organization. Greater scrutiny, broader responsibilities, and external pressures mean many experienced CEOs are choosing to step away from the role rather than serve another term. The modern CEO role is simply more difficult, with less margin for error.

The rise of first-time CEOs is both opportunity and risk. Fresh faces can provide new perspectives and energy, but first-time CEOs also face a steeper learning curve in a role where there is far less room for error than ever before. Boards must set new CEOs up for success with careful onboarding, support, and realistic expectations.

Women in Leadership: A Concerning Decline

In 2025, just 23-25% of all incoming CEOs have been women, down from around 28% in 2024. This decline, alongside an overall higher turnover of women CEOs and men replacing women more than half the time, suggests women leaders may not be getting the support they need to succeed.

In an era of historic turnover, boards must make special efforts to provide continuity for women leaders already in place and commit to a level playing field for women on search committees despite noisy internal critics.

What Boards Must Do Now

Make Succession Planning Continuous

Succession planning can no longer be reactive; it must be an ongoing process that actively maintains a pipeline of internal and external candidates ready to step into the role. This requires a deep understanding of current and future organizational needs.

Deepen Your Bench

With internal talent becoming a primary source of CEO appointments, boards must ensure a robust bench of potential CEOs. Chief Operating Officers represent the top source of internal appointments (21% of incoming CEOs), but boards must think creatively about future skills. In technology, less than one in ten incoming CEOs had prior CEO experience, with boards prioritizing deep technical expertise over traditional credentials.

Partner with the Right Search Professional

In an environment where the stakes have never been higher, organizations need search professionals who truly understand what makes a leader successful in context and are not just focused on resume matching.

At Diestel Executive Search, we know successful search requires extensive networks, rigorous assessments, and a consultative approach that builds true partnership for every assignment. With over 25 years of experience, we’ve helped organizations find transformational leaders through many challenging landscapes.

The current accelerating “CEO revolving door” presents challenges, but also opportunity – to bring in fresh perspectives, align leadership with strategic needs, and position organizations for future success.

For organizations looking to chart a course through this new reality, the time to act is now. Begin building bench strength, partnering with experienced search professionals, and positioning your organization for success no matter how many times that top leadership position comes open.

Reach out today to see how we can help your organization’s next CEO search, or visit diestel.com to learn more.

Diestel Executive Search, a partner of PrincePerelson & Associates, specializes in connecting organizations with transformational leaders. For more than 25 years, we’ve delivered world-class executive search services. Visit diestel.com or call 801.365.0385.

Leadership changes define companies. For CEOs, the topic of succession, however, feels like the reluctant acceptance that their time is coming to an end—a delicate conversation that most put off for as long as possible.

But by the time most executive leaders start succession planning, their companies have already suffered from not having cultivated a pipeline of talent to fill a C-suite position. They haven’t had the foresight to ensure their board is aligned and prepared. They have failed to make the required effort to continue transferring institutional knowledge to a new generation. This inaction creates more vulnerability at the precise time when companies need stability and forward momentum more than ever.

At Diestel Executive Search, we have helped many CEOs with the succession process —from precision manufacturing and aerospace to companies on the Silicon Slopes that are going through a hyper-growth period or changing ownership. In our experiences, we realized that CEOs are not prepared because they see succession as stepping down from the top spot. The future of their business is their pride and joy; they are deeply connected to the company and the business.

Let’s explore why succession planning feels so personal to CEOs. We’ll also share how CEOs can and should get over the hump to truly ensure that they have the most qualified leaders in place to take on C-suite roles in their companies. We’ll also look at Diestel Executive Search’s role in helping with a company’s succession plan.

Why do CEOs feel reluctant about succession?

CEOs have many good reasons to be hesitant about a succession plan. The CEO may have built a company over the course of 20 to 30 years or spent 10 to 20 years running a company as a leader. The company is not only their professional life—it’s personal. So, when the CEO knows that they have to think about the succession plan, they start to worry about retirement.

CEOs feel hesitant about succession for a few other reasons:

• Believing that the announcement of a successor is a clear signal that retirement is on the horizon
• Afraid of losing influence
• Thinking that someone could do the job better or differently
• Believing that the leadership team is not qualified enough to take over the role
• Thinking they still have time and do not need to create a succession plan yet

If a CEO even starts to think about succession and a CEO isn’t 100% ready, it automatically leads to uncomfortable conversations with the leadership team, board, and even HR and other stakeholders.

Who will be chosen? Who will be passed over? How do you develop the skills required for those that are going to be a CEO in the future without making other high-performing leaders in the C-suite jealous or envious that they didn’t get a chance to be the chosen one? These are real problems, and they become bigger issues the longer a CEO waits to even consider the thought of succession planning.

Research has consistently shown that companies without a succession plan in place or those companies where the board was not even aware of the succession plan that was being developed face a higher risk of operational disruptions, key employees leaving, and stakeholders feeling let down by the company’s decisions in the event of an unexpected transition. The cost and consequences increase many-fold if the leadership change is reactive rather than proactive—such as  a health crisis, sudden market shifts, burnout, or family emergencies.

The main reasons that companies delay succession in Utah’s current and fast-paced markets

The business landscape in Utah has changed significantly in the last ten years. With new and large companies coming to Utah and setting up business, Utah is no longer dominated by real estate, manufacturing, and the healthcare industry. The state now also has robust tech corridors, advanced manufacturing firms, and high-end financial service firms. In fact, a company in financial services can have over $200 billion assets under management and is a good example of fast-paced markets, so the stakes are higher when a sudden transition of power occurs.

If a company waits until the last moment or never does any planning and the CEO suddenly leaves or the board wants a leadership change, a lot can go wrong. Even before the new CEO is chosen and can start working on hitting the ground running:

• Projects come to a halt until the new person arrives
• Relationships with board members, investors, customers, and business partners are at risk of losing that personal touch and history that has been established over time
• High-performing executives who were in the running for a new CEO role begin to get calls from headhunters
• Institutional knowledge that the company needs in order to continue working can easily leave a company once high-performing leaders are given the cold shoulder when it comes to promotion or succession

We have seen companies where the board has panicked in the event of a CEO transition and have no succession plan in place or have failed to develop a leader internally. In the panic, boards make hasty choices by recruiting someone from the outside instead of developing the leader that was already in the company. Sometimes these external candidates don’t even fit the culture of the organization because the board was not involved in the development of the candidates that were in the company all along. It takes much longer to bring in an external person compared to someone already in the company. It costs the company significantly more in money and lost opportunities.

In today’s market, where the talent pool is much larger and people can change jobs easily, your competitors do not stand still. They keep attracting customers and keep going. Your customers are not going to be loyal to your brand if you are not taking care of business because of a hasty CEO transition. Stakeholders and investors get nervous as well.

Companies that have the CEO role and an entire leadership team intertwined with their personal lives may not plan for succession properly. This is especially the case for family-owned businesses or founder-led companies.

Succession planning starts with assessment

The problem with some of the CEOs not wanting to create a succession plan is that they don’t see the need for it because they feel that they are not going anywhere soon or retirement is too far away. 

Planning should start about three to five years before any planned transition but as early as possible is key. The time you start to plan is not when you think you are going to retire but more of when you have an idea. Some may want to stay in the company longer, and some may choose to retire shortly, and that is all fine if a plan is in place.

Succession planning and the development of a potential successor should start with an assessment of the future vision of the company. Ask questions about where the company is heading, what the corresponding core values, mission and strategic plans that may be in place in three to five years, and so on. These will help form the foundation of your succession plan.

How well equipped are your current executive team for the future company?

Questions should be asked around the following:

• What are the core values of your company and do these need to change?
• Is there anything that the leadership team could do differently?
• Will the future company require new skills that the executive team might not be able to deliver?
• Is the current leadership team equipped with the right skills for where you want to take the company?
• Are you seeing any gaps in the skill sets or areas that will be crucial for the future company?
• Do any of your current executives need to take on a more active role?
• Do you have any executives who should step back or step out because they are holding the company back?

Planning the development of the future CEO

The above questions will give you answers on what your future company will require from a CEO. Based on those answers, you should be able to map that with the current team of executives. The future CEO may already be in the company or might need to be recruited externally. The real challenge comes with companies that have multiple capable executives who are all vying to be the next CEO.

The best and easiest succession plan is to develop your leaders internally and to start now.

Diestel Executive Search can help initiate succession planning and the respective  executive development process. In several cases, we’ve worked with internal leaders who were ready to leave the responsibilities of their existing function and had the potential for CEO-level leadership, but required further development and exposure to round out the skills needed for that role.The only way to truly find out about the skillset of an executive is to have a truly transparent development plan and to put the executives through their paces by putting them through real-life situations.

Finding a strong successor

The choice of a successor might be easier for a company and board when looking at a start-up. Founders are much easier to assess as they have been there from the start and know the business inside out. Also, the founder should have the company’s growth and direction in their vision and will have likely developed capable leaders in key areas of the company so it is an easier task to find a successor.

Partners in succession planning: Executive search firms

Partnering with an executive search firm for succession planning provides a few benefits:

• Objective third-party evaluation of internal and external talent
• Benchmarking market trends and salary research to identify and grow internal talent
• Confidential research of external candidates
• Support and guidance throughout the process for boards, CEOs, leadership teams, and HR

Remember: plan for the future today.

SALT LAKE CITY, UT – September 26, 2025 – Diestel Executive Search, a Division of PrincePerelson & Associates, today announced the successful placement of an experienced non-profit executive as National Outreach Director for a leading national organization focused on youth development and community engagement.

The newly appointed director brings over 15 years of proven leadership in non-profit strategy, outreach, and partnership development, including experience in directing stakeholder marketing initiatives, managing cross-functional teams, and building strategic partnerships with government agencies and private sector organizations.

“This placement represents exactly the kind of strategic leadership hire that can transform an organization’s national reach,” said Josh Love, Executive Recruiter with Diestel Executive Search and PrincePerelson & Associates . “We identified a candidate whose experience in scaling outreach programs and building grassroots partnerships perfectly aligns with our client’s growth objectives.”

This search was both unique and challenging, and Diestel Executive Search was energized by the opportunity to partner with such a purpose-driven organization. The team is proud to have identified a leader whose values and vision align seamlessly with the client’s mission, making this a truly successful match.

This placement adds to Diestel Executive Search’s growing portfolio of successful non-profit executive searches. The firm’s expertise spans multiple sectors, including non-profit organizations focused on youth development, outdoor recreation, and community engagement.

“Our success in non-profit executive search stems from understanding that these organizations need leaders who are both strategically minded and passionate about mission-driven work,” explained Josh Love. “We look beyond traditional qualifications to identify candidates who bring the authentic commitment essential for non-profit leadership.”

About Diestel Executive Search / PrincePerelson & Associates

Diestel Executive Search, a Division of PrincePerelson & Associates, specializes in connecting organizations with transformational leaders across multiple industries. With over 30 years of experience, Diestel Executive Search and PrincePerelson & Associates provide executive search, professional staffing, and talent advisory services, including specialized expertise in non-profit, technology, life sciences, finance, and manufacturing sectors.

The firm’s consultative approach combines traditional search rigor with modern recruitment tools, ensuring clients receive candidates who are thoroughly vetted for both results and cultural alignment.

For more information, visit www.perelson.com.

Media Contact:
Kelly Vittum

Chief of Staff

Diestel Executive Search / PrincePerelson & Associates
Phone: 801.365.0385
Email: kelly@perelson.com
Website: www.perelson.com

The question of what makes a good leader, especially in the business world, has been the subject of much debate. One could point to any number of important character traits or skills as the key to competent leadership. However, the reality is that leading well requires a blend of characteristics that enable your organization to achieve key milestones indicative of success.

Consider successful leaders in history – Henry Ford, Winston Churchill, Bill Gates, George Washington, Andrew Carnegie, to name a few. What do they all have in common? Their personalities, their methods, and their motivations were all unique. Yet, they arrived at the same destination. They had the ability to inspire others around them to achieve political, business, and technological goals.

How did they do this? Let’s examine the key characteristics that enable leaders to achieve success regardless of their industry or position. These are some of the top traits that executive recruiters look for when evaluating the resumés of c-suite candidates because they are often indicative of leadership potential.

1. Communication – Have you ever met a successful CEO that stumbled over their words or failed to express ideas clearly? This is a rare flaw for most leaders. The ability to confidently and effectively speak with individuals from a variety of different backgrounds is an essential skill. Executives direct projects and communicate directives from the board to employees and coworkers, they are the company’s face to stakeholders and shareholders. Excellent communication garners the confidence and trust of these people.

Exceptional communication requires listening skills as well. Knowing when to speak, when to listen, and how to listen helps reassure others they have your full attention and that their concerns matter.

2. Emotional Intelligence – Employees may perceive top executives as distant and cold if their interactions with them are limited to addressing problems or doling out assignments. A leader that possesses empathy and demonstrates an interest in coaching and mentoring employees breeds a relationship of trust and loyalty within the organization. Employees are more likely to be engaged if they feel that leaders are aware of and support their efforts in winning the day-to-day battles.

3. Accurate Self-Assessment – Effective leaders know who they are and where their strengths and weaknesses lie. Humbly realizing their imperfections, they willingly accept advice and assistance when necessary, relying on the expertise of others to come to the best solutions. Interactions with others are tempered by their ability to exercise self-control to overcome any natural tendencies to jump to conclusions, become frustrated, or pass judgment too quickly.

4. Bravery – Leadership roles are not for the faint of heart. When issues arise with employees, projects, or investors, they must make difficult decisions. Ignoring problems and hoping they will resolve themselves allows issues to fester, stagnating important projects and initiatives. Leaders need to be prepared to have difficult conversations and proactively address problems as they arise to keep the company on track.

5. Willing to Delegate – An executive’s purview is limited. While they oversee much of the business, they must rely on others to execute their vision and goals. However, delegating is more than moving tasks and appointments off one to-do list onto another. By allowing others to step forward and take responsibility, leaders enable others to grow and acquire new skills. It helps all to feel their contributions are necessary. Leaders delegate most effectively when they exhibit trust in those to whom they delegate, leading to better decision-making, project ownership, and autonomy. It helps to build employees’ self-confidence.

6. Learning Agility – Many individuals are gifted learners. However, fewer possess the ability to incorporate new information and apply it to unique or unfamiliar situations. Business leaders faced numerous unexpected challenges during the pandemic with no clear-cut solutions. Solving these problems and those that will arise in the future requires drawing upon not only their knowledge but those around them as well. Assimilating this wealth of knowledge and applying it to develop new solutions defines a pioneering leader.

7. Integrity – No leader can successfully garner support if they say one thing and do another. Great leaders show a high level of commitment to being honest and fair in everything they do. This integrity in an executive allows employees to feel safe at work. They can let their guard down, knowing they will not be blindsided by a sudden change of policy or position. Employees who feel at ease are more likely to take chances, expressing contrasting opinions and new ideas that can lead to innovation and growth.

Effective business leadership requires a unique combination of qualities to build trust with employees first and then inspire them to apply themselves and their efforts to ensure company success. While there is no specific combination that works every time, there are key indicators to watch for when searching for a new manager or executive for your organization. With over 24 years of experience finding the best c-suite leaders for companies across the state of Utah, Diestel’s skilled recruiters can help you identify the applicant with the best leadership qualities to join your organization.

During his time at Apple, Steve Jobs undeniably left his mark on the world, which was precisely what he set out to do. He said, “I want to make a ding in the universe.” That was his goal and his mission. It drove him to push his company to new heights and innovate technology beyond the level of any other company.

While Jobs is just one man, his actions illustrate that individuals and companies achieve more when they have a compass to follow. Money is not enough to motivate employees to be engaged, loyal contributors. However, if they grasp the company mission and understand how their contributions make a difference, they develop a sense of ownership for their work. They are more likely to engage creatively with the team because they are motivated by intrinsic factors. As a whole, the company is more likely to be competitive and achieve its goals.

Crafting Your Mission Statement to Support Your Mission

Often seen as a marketing tool, mission statements can be even more impactful to the employees they direct than the customers they are trying to attract. Mission statements vary from one company to the next. While some read like a short description of the company’s services, others uplift and inspire. What makes a good mission statement?

• Actionable – Statements about “striving to be a top producer of circuit boards” sound good on paper, but these statements fall flat if they do not direct company operations. They become a statement of a goal but do not indicate how it is to be achieved. Additionally, words such as “strive,” “aim,” and “foster” leave wiggle room for not living up to your vision and suggest a potential lack of commitment. When defining the core of your business, choose verbs that reflect your devotion to those principles and promote action.
• Inclusive – Companies are rarely one-trick ponies. Attempting to include every aspect of your business in one mission statement can range from wordy to impossible. Instead, focus on creating an umbrella statement that encompasses each aspect. Examine what each department, product, or service has in common to identify the unifying theme.
• Personal – Your mission statement should reflect your company culture and personality. If you support a casual work environment, steer clear of stuffy mission statements that would misrepresent your character. Seek to make a connection to customers and employees alike by aligning the tone of your mission statement with your company culture.
• Timeless – Is your company the same today as it was five or ten years ago – most aren’t. Your direction and focus, location, and size may change over time. However, if written well, a mission statement should remain relevant with minimal need to change. Consider the following mission statement for Nike:

“To bring inspiration and innovation to every athlete in the world.”

If the company changes direction and starts selling different equipment or clothing, its mission statement is still relevant, recognizable, and inspiring.

Applying the Principles

A mission statement is only beneficial if you apply it in the workplace so that it becomes more than mere words on a page. C-suite executives, often closely involved in writing a mission statement, are the most familiar with its tenets and how they guide everyday business. The more separated an employee is from those top leaders, the less familiar they are likely to be with this important guide. Communicating your mission statement effectively and often through many different channels helps your mission become integrated at every level of the business.

They say actions speak louder than words. Nowhere is this statement more correct than in business. Executive recruiting should hone in on candidates whose actions and attitudes embody the mission of the company. Employees watch their superiors closely and, for better or worse, may adopt attitudes and work habits from them. They are adept at spotting actions consistent and inconsistent with the company’s mission statement. Practicing what you preach will not only earn you the respect of your employees but will highlight your support for and belief in the mission statement.

Since mission statements are often broad and all-encompassing, it can be challenging for employees to understand how they apply to their day-to-day tasks. Help them embrace it by providing specific examples of how the principles apply to them. Celebrate successful applications of the ideals and principles it contains. Make is a statement that defines who you are and what you do, and others will follow your lead.

The umbrella of corporate responsibilities has grown over the past several decades. Customers still expect that employers provide safe working conditions for employees and offer quality products. However, they now expect that companies operate in socially responsible ways. Protestors and activists regularly call out companies who fail to see their impact on the environment, workers, or the local community.

Community social responsibility (CSR) is no longer a feature that is ‘nice to have.’ It must be a standard integrated into the fabric of organizational operations. Executive search firms seek out candidates who are skilled in community outreach. Those who adopt environmentally friendly operational strategies are a boon to companies desiring to reap the abundant benefits of CSR.

What does CSR look like?

The purpose behind a company’s CSR efforts is to recognize the significant impact the organization is having and can have on the environment, the community, their shareholders, and the people they serve. While some see large corporations as entities that consume resources and produce waste, they also have an unparalleled ability to use their resources, abilities, influence, and innovations to improve conditions worldwide.

The methods executives employ to fulfill their social responsibility will look different from one corporation to the next. However, the majority of CSR efforts can be grouped into four main categories.

1. Political Involvement – In 2018, Salesforce CEO Marc Benioff stepped out on a limb in direct support of Proposition C in California to help reduce the incidence of homelessness in the Bay Area. While the courts fought over the legality of the legislation, Benioff pushed his initiative by establishing the Benioff Homelessness and Housing Initiative to search for other solutions to the growing problem.
2. Pro Bono Services – Large corporations such as Ford, AIG, Walmart, and others fund or directly provide legal services to victims of domestic abuse, refugees facing deportation, and impoverished hospital patients. Lawyers assist these vulnerable individuals in navigating complex court proceedings and legal forms.
3. Community Outreach – Marvin Ellison, CEO of Lowe’s, worked hard to rise from the son of sharecroppers in Tennessee to become one of a limited number of black CEOs of Fortune 500 companies. To help close the gap in leadership positions nationwide, Ellison launched his Track to the Trades program, reimbursing employees for expenses related to trade certifications.
4. Environmental Impact – When Michele Buck took the lead in Hershey’s social responsibility efforts in 2011, she pushed the company towards certifying their products made with 100% sustainable cocoa, supporting deforestation efforts in the growing industry.

Your company’s approach to CSR will depend on a variety of factors, including the needs of the surrounding community, your particular area of expertise, and the resources you have at your disposal. A CEO who knows how to listen to and understand the needs that arise and lead others in developing and implementing solutions stands to realize many benefits for the company and its employees.

What benefits come from CSR?

Enhanced Reputation – Executives that show an active interest in the community and the environment demonstrate their concern for improving conditions for employees at work and the broader population. Media outlets often present stories that feature corporate involvement in philanthropic events. Customers appreciate companies involved in improving the world and are more likely to give them their business. For some, the causes that your organization supports may even be more important than the products or services you offer.

Customer Loyalty – We are all drawn towards individuals and organizations that have the same values and beliefs that we do. Community involvement shows customers what your company stands for promotes loyalty from those who identify with those same issues, providing steady and reliable income.

Brand Recognition – When employees wearing the company logo volunteer in the community, people associate your company with that cause. They connect something meaningful to them, such as a 5k to raise money for cancer and your employees, extending your branding beyond the services you offer during the week to include what you give back to others.

Capital Investment – Growing companies often require an infusion of outside resources to get off the ground or fund company expansion. Investors are more likely to invest in a company with a cause. It allows them to make money while supporting a cleaner environment or current social issues.

Recruiting and Retention – Employees are more engaged and inspired working for a company that endorses positive change. It can also make a position at your company more appealing to applicants. According to a survey performed by Cone Communications, 82% of millennials take CSR into account when deciding to take a job. Additionally, 70% stated they were willing to accept a job that paid less if they believed the company had strong social values. Keeping CSR at the forefront of your business can help attract and retain up-and-coming talent and bring fresh new ideas to projects.

Building Teams – Volunteering in the community presents employees with unique opportunities to develop leadership skills as they work together for a common cause. It also fosters a sense of community among employees working in all areas of the business.

Leading from the Top

Executive leadership in any organization determines more than business strategy. They set the tone for company culture and model community outreach behavior and attitudes. Utah executive search companies are skilled in identifying c-suite candidates willing to stand for something and lead the company to support local nonprofit organizations and volunteer in the community. If you have not yet found you the niche in your community to support, the holidays are a great time to join others in supporting families and individuals who find themselves in less favorable circumstances this year. Pulling employees together to help others this year can help them work better together in the year to come.

The tradition of contemplating the past year and setting goals for the next is ancient. Four thousand years ago, early Babylonians took advantage of the dawning of a new year to rededicate themselves to their king and to please the gods by repaying debts. Ancient Romans paid homage to the god Janus, who looks both forward and backward through sacrifice and making pledges to do better in the future. Early Christians, such as John Wesley, the founder of Methodism, held worship services on New Year’s Eve. The services, still held today, focus on improving oneself in the coming year.

While the date of the New Year celebrations in many cultures varies, it provides a natural divide in the timeline of our lives for a new beginning. Wise business leaders leverage this opportunity when budgets roll over and new projects launch to take stock of earnings, employee performance, and company culture over the past year and set strategic goals for the upcoming year to guide efforts and achievement in the year to come.

Why Set Goals?

Businesses operate best when employees at all levels are well-informed about the desired direction and outcome of day-to-day operations. Goals define the bigger picture of what leaders hope to accomplish and achieve by outlining concrete objectives. They impact businesses in the following ways:

• Indicate how and where resources such as employee time should be allocated
• Identify key areas where funding should be increased or decreased
• Highlight business priorities
• Motivate employees to focus on a strategic plan

The type of goals that your board elects to pursue is not as important as going through the process of defining, setting, and committing to achieving goals. In and of itself, the goal-setting process can be enlightening and will undoubtedly motivate leaders to work towards the needed change to achieve their strategic plan for the future.

Planning for the Process

Have you ever sat down to write goals for the next year and come up with either a blank piece of paper or a laundry list of tasks akin to climbing Mount Everest?

Setting the right kind of goals for your company begins with determining your starting point. Reviewing key performance indicators (KPI) over the past six months or the past year will reveal the company’s current direction, as well as areas that may be lagging. During your analysis of the past, it is essential to note company strengths and weaknesses. What is propelling you forward, and what is hindering your progress? Bolstering skills and performance in areas that are already strong will do little to move you closer to your goals unless you can make significant improvements where KPIs are low.

Armed with an in-depth understanding of your own organization, turn your attention outward and examine how you measure up against the competition. As much as your success is shaped by your improvement year over year, your business success will ultimately be determined by your ability to outperform competing companies. Are you truly equipped to compete in your target market? Can you offer customers something that nobody else can?

Consider the future direction of your sector of the economy. Change is constant in the economy, and recent years have proven that operations can change on a dime. If business interactions appear to be trending towards a new business model, are you prepared to make the necessary changes, or will you be left behind? Determine what skills or tools you need to acquire to keep pace. Will you need to partner with a Salt Lake City executive recruiting firm to hire an executive with unique knowledge, skills, or experience?

Setting the Right Goals

Business innovation is constant, and trends come and go. It can be easy to become side-tracked by groundbreaking ideas and practices that appear to be the wave of the future. While you should not ignore these types of trends, diverting company time and resources away from long-term goals in pursuit of fleeting ideas is folly. Keeping your company on track for the long-haul results from setting goals arising from and in support of your organization’s mission and vision for the future.

Realistic business goals all have several characteristics in common.

• Quantifiable – Ambiguous goals are challenging to achieve because it is difficult to track one’s progress. Progress that you can use data to measure helps maintain focus and interest in achieving goals. Stating goals specifically and tying data points or KPIs to their achievement makes them easier to understand, grasp, and reach.
• Manageable – Lofty goals sound great during the planning process. However, if progress is too slow for it to be visible or the timeline to achieve it is too long, employees will likely lose interest or grow fatigued. If your goals are substantial and may take seven or ten years to realize, consider ways to break them up into smaller steps that will lead you to the same destination.
• Achievable –If your company typically wins two new contracts every three months, it would be unwise to set a goal to sign ten contracts in the first three months of the year. Goals that appear unattainable from the start can be demoralizing. It is wise to set goals that require a stretch as long as that stretch is in reach. Avoid asking employees to reach the stars unless they are astronauts.
• Fundable – With the right funding behind them, many initiatives can be successful. However, the budget may not allow you to fund them all at once. Contemplate the monetary investment required to support employees and provide the necessary tools to make your goals happen.
• Congruent – Well-intentioned goals to improve business practices and outcomes can conflict with one another. For example, a goal to cut call center operating costs may conflict with a goal to reduce customer wait times. You may have to decide which goal brings you closer to achieving your company’s mission and vision.

Reviewing the Data

Evaluating the goals set for your company is a long-term process. Regularly checking key performance indicators will inform you of your progress and alert you to flaws in your planning. Making necessary adjustments along the way is part of the process and will help fine-tune your goal-setting process for future years. As you make progress, keep employees informed and celebrate milestones along the way. Integrating employees into the process keeps the goals at the front of their minds and gives them a stake in the outcome. Employees, managers, and executives all have a part to play in attaining company goals.

New employees regularly go through the process of onboarding. This formal process is vital to their success and is a task that companies focus on completing well. However, hiring and integrating a new CEO into an organization is an often ambiguous process fraught with potential problems. Assumptions on the part of a new CEO or the Board can easily undermine the process.

There is no right way to transition from one CEO to the next. Every company, CEO, and situation is unique. Unfortunately, most companies do not have a transition plan and those that do often discontinue it prematurely. The formal announcement that the title of CEO has transferred from one person to another does not signal the end of the switch. The finish line is achieved when the new CEO has won the respect and loyalty of the Board and other key organizational leaders.

What is CEO transition?

CEO succession is often viewed as the process of replacing one CEO with a successor chosen internally or recruited from outside the organization. However, thinking about the process as two distinct steps may be more accurate. The first step is recruitment, encompassing evaluating both internal and external candidates for the position.

Executive recruiting companies can assist in identifying and vetting candidates that are a good fit for your organization. Recruiting the best candidate can be a lengthy process, lasting months and consisting of both formal and informal interactions. When the recruiting phase ends, you make your offer, and the candidate accepts, the recruitment phase ends, but CEO succession is far from over.

The following months spent integrating your CEO into the leadership and operations of your organization is the CEO transition. This period is more challenging. The transition requires the new CEO to understand existing opinions, emotions, habits, and egos and learn how to mesh those with her own.

High Stakes

According to the Corporate Executive Board, 50-70% of executives fail during their first 18 months in a new role regardless of whether they were promoted internally or an external hire. This high failure rate costs companies millions in time and money devoted to recruitment. Additionally, a significant percentage of investors make their decisions based on the leadership of a company. A failed CEO can be a red flag costing the organization investment capital. Stock prices can also suffer when the leadership appears unstable.

Getting it Right

Companies hoping to transition from one CEO to another successfully take deliberate steps to ensure they have the necessary knowledge and build key relationships to carry them through more than just the first few months.

• Planning

How you plan to carry out your CEO transition can depend greatly on the underlying reasons behind the change. In the case of a CEO forced out by the Board for poor performance, the transition period may begin abruptly, and the new leader may need to hit the ground running. However, if the outgoing CEO plans to retire, there is an opportunity to leverage their skills, knowledge, and connections for a smoother change.

Developing a plan to transfer their intimate knowledge of the company and its culture to the new CEO is vital. Communicating this plan to the board, as well as top managers, can help to avoid confusion, provide stability, and keep operations moving forward during a potentially unsettling period.

• Integration

Successful CEOs have a relationship with and understanding of the individual directors on the board. Developing these relationships requires an investment of time. Meeting one-on-one with each on multiple occasions allows a new executive to identify and gain an appreciation for the talents and abilities of each and the way they do business. Misunderstandings and personal conflicts can be avoided if personalities and opinions are voiced upfront rather than challenging them in public.

Every executive has a different leadership style. While some companies recruit a new CEO to be an instrument of change, change is inevitable in CEO transition. To operate effectively and implement new programs and initiatives, a new CEO needs a firm grasp of the company culture in which they are operating. What are the unspoken rules and traditions? How are things done? How resistant are employees to change? An outgoing CEO can offer a wealth of knowledge regarding who the key influencers in the organization are and what ideas should not be challenged.

Is an Executive Chairman Beneficial?

An analysis performed by Russell Reynolds of Fortune 250 companies found that 84% of executives acting as both CEO and Chairman retained the latter title after the company hired another CEO. While most executive Chairmen act in that capacity for less than a year, the benefits of retaining an outgoing CEO for a period of time are significant.

Because of their experience as the acting CEO, an executive Chairman is in a unique position to advise the incoming CEO. They can help transition responsibilities and relationships from themselves to the new executive. They also provide a sense of continuity to the board and employees, who may be concerned about changes coming on the heels of a CEO transition.

In some cases, the drawbacks may be greater than the benefits. In family-owned businesses or those where the outgoing CEO is the founder, the outgoing CEO may struggle to hand over the reins to their successor. Their actions and opinions may undermine efforts to make necessary changes. Employees may also continue to view them as the true head of the company, limiting the authority of the new CEO.

The duties and responsibilities of an executive Chairman should be defined and limited in scope and duration. Limitations provide a path to leadership for the new CEO and eliminate ambiguity around task and relationship ownership. There is less probability of a ball getting dropped because ownership of the task was unclear.

Transitioning ownership and leadership to a new CEO presents challenges for companies nationwide. Those who successfully navigate this change do so deliberately and methodically, transferring knowledge, information, and tools that help their new leader successfully lead the company.

Company value statements, mission statements, and goals can all be useful tools in defining how you do business. They can direct decision-making, client interactions, and recruitment efforts. However, if the purpose and function of these tools are misunderstood, they are likely to be implemented poorly and may undermine the very processes they were designed to support.

Defining Core Values

Before outlining your organization’s core values, it is important to understand what core values are and what they are not. As the name implies, core values lie at the heart of everything in your business. They should influence every facet of business operations, interpersonal interactions, and recruitment. They are beliefs inherent in the organization that give it its unique identity when compared to competitors.

When these values are written down and communicated to employees, stakeholders, and the public, they have the power to create a deeper connection between your company and each individual. Employees that identify with these values are more likely to be engaged and motivated in their work. Likewise, customers who find your values inspiring may be more loyal to your brand. These values are what make your brand authentic and make you genuinely proud of everything it accomplishes.

Core values are not a list of qualities you aspire to have or hope to develop. They describe the company as it exists and operates at this point in time. They are not negotiable. One cannot bypass them to close a deal or make the process simpler. Thus, determining these rules by which you do business regardless of circumstances requires time, honesty, and perspective.

Far-Reaching Effects

Recruitment

Companies with well-defined core values know who they are and what they stand for. This knowledge assists with recruiting the right people for open positions within the company. Individuals who are not motivated by the company’s core values are likely to be a poor fit in the company culture. Despite other qualifications they may have, they will not embody the branding and image you are building for your organization.

Overcoming Adversity

When problems arise, the solutions you choose will inevitably be influenced by what you value most. Your core values guide your problem-solving and decision-making processes as you pursue goals and navigate bumps in the economy.

Consistent Branding

Companies often reach customers through creating branding and image with their target audience identifies. Core values unite employees, executives, and managers in presenting a unified vision and mission to their customers.

Increased Accountability

When you weave core values into everything your company does, employees at every level understand the expectations placed upon them. They understand that deviating from well-established and communicated standards engendered by the company will undoubtedly have repercussions.

What are your core values?

If you do not have clearly stated core values, taking the time now to define them is a worthwhile pursuit. However, to arrive at the desired outcome, it is vital to begin with the right people and the right expectations for what you are attempting to accomplish. Your values will not change the future or even the present. In fact, the conclusions you arrive at should not surprise anyone involved because they should be an accurate reflection of the present.

1. Ask Questions

Begin by gathering information. Talking to people is one of the best ways to gain different perspectives of the company. Ask others how they see the company with questions such as:

• What are the strengths/weaknesses of the company?
• What company decision or action did you agree strongly with?
• What do you believe the company will be remembered for?
• What makes the company unique?

The answers to these questions will shed light on company motivations – why you do what you do. While some small companies may choose to interview many employees, it may be wiser to include only executives and key managers in this step. Top executives are most familiar with company goals and vision and may most closely engender the company’s core values.

2. Sort

For many, these initial conversations will yield a long list of adjectives that may or may not describe the company. Sorting through these answers can be enlightening as trends begin to emerge. Look for recurring themes and ideas. They may be expressed in different terms while attempting to describe the same value. Look for concrete examples that justify these conclusions. If a company is truly innovative, it should be easy to brainstorm examples that illustrate that quality.

Narrowing down your list to the top values that describe your company should leave you with less than ten total. A list of values longer than that is cumbersome and difficult to remember. You may find that you only need two or three to define the heart of what you do. Try to be specific in your word choice and avoid cliché words and phrases.

3. Be Unique

Choose values that fit your company like a glove. Nearly half of all companies choose words values like honesty and commitment as core values. They are great values to have in the workplace, but they do not set you apart from other companies.

Among the Container Store’s core values is “1 great person=3 good people.” This unique statement engenders the qualities of hard work, honesty, and integrity in a phrase that employees will not easily forget. Likewise, Commune Hotels and Resorts chose “Follow Your Angel, Ignore Your Devil (Most of the Time)” as one of their core values to guide their business practices.

The words that you choose and how you express your core values can say a lot about the brand and the company culture as it does about the value itself. If the words you glean from your first round of interviews don’t fit the company, allow time to mull them over and tweak the phrasing until your values reflect the company precisely.

Implementation

When you have a defined set of core values to do business by, include them in every aspect of your business. If you are working with an executive search firm, make sure they know the core values you need in your new executive. Hiring someone who not only aligns with these values but will promote them at all levels of the organization is essential.

Ensure that you make employees aware of company goals when they are hired and every day after that. Core values should be so pervasive as to influence everyday tasks and interactions supporting your unique company branding. Customers should be able to tell that your company is different because of your core values.