How To Survive Leadership Turnover

Leadership turnover is a natural part of a growing/entrepreneurial company. Approximately 80% of companies that run on EOS® experience a leadership team change within the first few years. This natural outcome results from the priorities and roles within the company becoming laser focused. While painful, learning how to survive leadership turnover can set a company on the path to ongoing success.

The EOS Process® helps build a cohesive leadership team by creating an environment of deep accountability and trust. But not all leaders are willing or ready for this path. The breakthroughs can create intense moments that cause discomfort for those not on board.

Common Reasons for Turnover

While the reasons for leadership team turnover vary by each business, several common themes emerge, including:

• Organizational growth
• Pushing personal growth
• Leadership team seats get bigger

Organizational Growth

Companies that adopt EOS typically have experienced fast growth. When a company works to get stronger in the Six Key Components™, it shines a light on the challenges/barriers associated with that growth. The process inevitably smokes out weaknesses in the organization. Some people simply aren’t ready or capable of taking on these challenges, which can eventually lead to a departure.

Pushing Personal Growth

Running on EOS™ drives leadership team members to grow and become stronger leaders and managers. Those more comfortable “doing” rather than leading or managing others may find this difficult. Again, this can lead to a departure.

Leadership Team Seats Get Bigger

The Accountability Chart™ provides a clear depiction of all the functions (seats) in the organization. And sometimes, the roles of the seats get bigger than the capabilities of the current owner. This also may lead to a departure or shift to another seat. Turnover at the top level can feel unnerving. But it’s easier to swallow when you recognize it as a natural evolution of building a great organization.

Expect the Unexpected

Recently, a key member of a client leadership team abruptly left to go to a competitor. It stunned and angered several members of the team. Eventually, they recognized he really didn’t fit their culture and that his departure was actually the right result. He just recognized it before they did. While in the process of finding his replacement, they’ve been encouraged by the pool of talented candidates. It took a while, but now they know it’ll all work out.

Five Tips to Prepare for Leadership Turnover

Expecting leadership turnover helps owners and their leadership teams prepare for the inevitable. A few actions can help make those transitions go more smoothly.

1. Identify and Document Your Core Processes

This step helps prepare for a departure, expected or not. It reinforces the organization’s strength, stability, and resilience, especially when a key team member departs.

2. Continue to Hold Regular Level 10 Meetings™

Continuing the cadence of weekly Level 10 Meetings, including adding issues to the Issues List, keeps the leadership team aligned. These meetings also keep the entire leadership team in the loop with timely/relevant issues that may arise when a key member departs.

3. Maintain a Strong Professional Network

A strong network of trusted colleagues and advisors can serve as a sounding board outside your company. They can help you gain a broader perspective and offer referrals for future potential candidates for an empty seat.

4. Jump into the Seat If Needed

Knowing who will temporarily own a key seat before the leader vacates can lessen potential leadership team anxiety. It provides peace of mind and confidence that you can handle a sudden departure.

5. Don’t Panic

Maybe this should have been Tip #1! But hopefully, by now, you can see you don’t need to panic. Companies that run on EOS have a knack for bouncing back quickly because they prepare.

Remember that changes in the leadership team are normal, healthy, and a sign that your organization is evolving. Embrace the change!