All change at the top – three big lessons for dealing with a departing leader

We’ve seen a few changes at the top recently – from Rishi Sunak’s exit to make way for Keir Starmer as UK Prime Minister, to Joe Biden’s withdrawal from the US presidential race this week, with Kamala Harris taking over as Democratic nominee. Succession is, of course, at the very heart of politics – but it’s also something we need to plan for in the corporate world.

As with politics, the departure of a senior executive can have huge ramifications for the organisation and everyone who is part of it. A change at the top can be hugely symbolic – signalling a fresh approach, a new direction or simply an injection of new energy (much needed in Biden’s case). It can help refresh a tired culture, clean up a toxic one or provide focus and clarity for an organisation that has lost its way.

But there are downsides too – change can, of course, be hugely unsettling and particularly when the most senior leader in the organisation steps down. As the person ultimately responsible for setting strategy and delivering results, the shock of an unexpected exit can shake an organisation to its very foundations – leaving front line employees, managers and other senior leaders scratching their heads. Succession may well be a fact of organisational life, but it’s one that very often blindsides all but the most inner-circle.

For those of us in people-focused roles – whether employee experience and engagement, HR, internal comms or change management – it’s important to think about and plan ahead for potential departures. You may not think of succession planning as part of your role, but in turbulent times like these, we can all play a critical role in ensuring the transition is smooth and the outcome positive.

So, what can we learn from these high profile exits and how can we better prepare for them at work? Here are three big lessons inspired by recent events…

President Biden’s plodding withdrawal serves as a timely reminder of the unpredictability of leadership tenures. Organisations should be prepared for sudden and unexpected changes, ensuring that potential successors are identified and groomed well in advance and that, at the very least, there’s an outline plan of action in place.

Whilst it may be down to HR to ‘own’ senior leader succession planning, anyone in a people-focused role can play a pivotal role in it – and we all need to ensure we’re prepared for a change at the top.

Here are some questions to consider:

Do potential successors have a strong leadership communication plan in place, are they known and visible to employees? If a successor is likely to come from within, you can’t start building familiarity too early.
Are you seen as a trusted advisor? Lay the groundwork now – building that senior relationship and collaborating with colleagues in other functions.
Do you have a good working relationship with your externally-focused colleagues, particularly the PR and investor relations teams? Do you have biographies prepared and up-to-date images? Do you know how to reach potential successors out of hours? And have you thought through tactically how you’d communicate – internally and externally - a senior leadership change?

The importance of good planning is underlined by two contrasting examples. In 2017, Travis Kalanick's abrupt departure from Uber amid numerous controversies left the company in complete turmoil. The lack of a clear succession plan exacerbated the difficulties, as the company struggled to maintain investor confidence and employee morale.

While not as abrupt, Steve Jobs' resignation due to health issues in 2011 was a pivotal moment for Apple. However, Apple’s meticulous succession planning, which included grooming Tim Cook for years, allowed for a smooth transition and continued success, despite the exit of a truly iconic figurehead.

Keir Starmer’s election as UK Prime Minister illustrates the importance of clear and consistent communication during leadership transitions. In a few short weeks, Starmer has established a reputation as a clear-thinking, decisive, collaborative, principled, action-orientated leader with a strong commitment to communication.

In the corporate context, effective communication during a senior leader's departure is essential to maintain morale and stability within the organisation. Build a 100 day plan to guide the days and weeks that precede and follow the announcement. Address employee concerns promptly and empathetically through regular updates and open channels for questions to prevent rumours and misinformation. Provide a clear interim leadership plan to reassure employees about their job security and ensure reporting lines, even temporary ones, are understood.

External communication with clients, partners, and investors is equally important. Reassure them that the departure won't affect the organisation's operations or strategic direction by emphasising continuity and stability, and highlighting any positive changes or initiatives.

To manage communication effectively, prepare a detailed communication plan, designate a spokesperson, and hold town hall meetings or send regular email updates. Offer support resources such as counselling services and Q&A sessions to address individual concerns.

A 2022 survey by PR giant Edelman found that 60% of employees trust their company's senior leadership when they believe leaders act ethically and communicate transparently. This trust is crucial during leadership transitions. When employees trust their leaders, they are more likely to remain engaged and committed during periods of change.

In summary, transparent and prompt communication, along with a strategic communication plan and support resources, helps maintain stability, trust, and morale during a leadership transition, ensuring continued organisational success.

Recent research further underscores the importance of employee trust in senior leaders. A 2023 study by the Harvard Business Review revealed that companies with high levels of trust in their senior leadership saw 50% higher employee engagement and 40% lower turnover rates compared to companies with low trust levels. Trust in leadership not only fosters a positive work environment but also enhances productivity and innovation – and it’s the foundation stone for great EX.

A study by Deloitte in 2023 showed that organizations with strong succession plans are 1.5 times more likely to outperform their peers financially. This underscores the direct link between effective succession planning, leadership stability, and overall organizational performance.

To build trust in a new leader, consistent and open communication is essential. The new leader should introduce themselves, share their vision, and explain their goals, maintaining transparency about their intentions and decisions. Regular updates and open forums foster inclusion and reassurance, showing that employee input is valued.

Demonstrating competence and reliability is crucial. The leader should quickly address immediate issues, follow through on promises, and maintain consistent behaviour to build credibility. Employees need to see the leader as knowledgeable and dependable.

Fostering personal connections and showing genuine interest in employees' well-being enhances trust. Meeting with employees individually, listening to concerns, and showing empathy humanises the leader and strengthens relationships. Recognising and celebrating employee achievements also contributes to a supportive environment.

Practical tips for new leaders include being visible and approachable, setting clear goals, communicating progress transparently, actively listening, acknowledging mistakes, and being open to feedback. Aligning actions with organisational values and leading by example establishes a foundation of trust and integrity.

The recent political transitions of Biden and Starmer, along with high-profile CEO exits in the corporate world, highlight the critical importance of succession planning in maintaining organisational stability and trust. For HR, internal communication, and employee experience practitioners, these examples underscore the need for preparedness, transparent communication, trust-building and the strategic development of future leaders.

As a member of The EX Space you can access a number of fantastic resources to help you navigate these changes. Just a few examples including blogs and tools for our EX Essentials members such as:

And for our Professional Members, our Bitesize courses on human-centred change and becoming a trusted advisor, are also designed to support you.

And of course you can always join one of our monthly EX Clinics, regardless of your level of membership for free expert advice! Failing that, just drop us a line as we always love to hear from you!

All change at the top...

Lesson 1: Be prepared

Lesson 2: Clear and consistent communication is key

Lesson 3: Build trust from the get-go