Knowing When To Go | Accelerate Success with Lorraine Moore

In the words of Kenny Rogers, “You got to know when to hold ’em and know when to fold ’em, know when to walk away and know when to run.”

One of my highly successful clients is 61 years old and has been in the top position at her publicly traded company for almost 10 years. While she has not yet set a date to depart, we have discussed that inevitable point in the future. In her 50s, she promised herself that once she turned 60, she would check in with herself at least once per year and ask, “Am I still having fun? Am I still adding value? Am I blocking others from bringing new and better ideas to the leadership of the company? Am I still meeting the expectations of the board?” As soon as she finds herself saying no to one or more of these questions and/or when her judgment tells her it is time to retire, she will take that step. She has two potential heirs-apparent and capable successors. When she announces her departure, it is expected that there will be a smooth transition as she sponsors a robust succession-planning program at her company.

The most self-aware leaders have the humility and healthy self-esteem to step away when the indicators suggest they should do so. This could be advice from a spouse, a health issue, disagreements with the board, lack of interest and excitement about the role, when the leader believes that they have taken the company where they wanted to and perhaps as far as they can and it is ready for a fresh view and new leadership. These transitions are not always retirement but can be a sabbatical or a move to a new leadership role. Some CEOs make moves on a regular basis. They may do so to engage in new challenges, to run a larger company, to work in a new industry, or because they are turnaround CEOs who prefer to depart when operations are stable. Whatever the reason, CEOs seek authority, autonomy, variety, and an intellectual challenge.

Let’s consider some well-known CEO transitions. Bill Gates handed over the CEO reins at Microsoft in 2000. The Bill and Melinda Gates Foundation was founded the same year, and, in 2006, Gates turned his full attention to the foundation. While he found a new passion, it was consistent with the business of Microsoft; he leverages technology to benefit others.

Sam Walton retired at age 70 and handed the reins over to his protégé, a long-time Walmart leader, David Glass. Between Walton’s retirement in 1988 and his death in 1992, Walmart had unprecedented growth becoming the largest retailer in the United States. Today it is the third largest employer in the world, employing over 2 million people. Sam Walton recognized that it was time for someone else to run the company.

In 2014, Larry Ellison announced that he would step down as Oracle’s CEO and become CTO and executive chair. As CTO, Ellis is returning to his original interest while maintaining a path of acquisition. Like Sam Walton, Bill Gates and the CEO I described previously, Ellison had two capable and ready successors. Mark Hurd and Safra Catz now share the CEO role.

There are a variety of factors that influence the timing of a CEO stepping aside. As noted earlier, they can include: finding a new passion, knowing that new leadership is in the best interest of the company, returning to the roots of your interests, or for personal reasons such as family, health, or the need for a new challenge. Whatever the reason, the differentiator of the 360 Degree CEO is that he/she accepts or identifies when a change is appropriate and does not overstay their welcome.

Originally published in 360 Degree CEO: Generating Profits While Leading and Living with Passion and Principles.

My clients accelerate their results – increasing profitability, leadership performance, innovation, and accountability. I would love to discuss how I might help you thrive and contribute to your overall success. Contact me today.

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