The circumstances surrounding most CEO terminations are usually more complicated than they appear. I’ll leave the termination process to the legal experts. Instead, this article covers how to put the organization back on track after the inevitable trauma of a CEO termination.
When a board fires or forces out its CEO, two human tendencies come into play: heap all the blame on the departed executive and rush to hire a new one.
When a board fires or forces out its CEO, two human tendencies come into play. The first is to heap all the blame on the departed executive—to link the organization’s problems to the perceived deficiencies of the former CEO. This attitude can blind the board to the other very real underlying problems that helped to precipitate the termination, including the board’s potential complicity in creating some of the circumstances that led to the departure.
The second tendency is to rush to hire a new executive. Lulled by the idea that the problems can all be traced back to the “flaws” of the former executive, the board often scrambles to hire their next CEO. Many begin by looking for someone who is something of a mirror opposite of the departed executive. Fresh off the heels of the termination, the board usually starts seeking candidates who have strengths where the departed CEO had weaknesses.
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