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Though they’re frequently overlooked, incumbent CEOs are central to ensuring dramafree successions. An in-depth study of 30 departing CEOs shows that when they have strong relationships with the board, are actively engaged in choosing their replacements, and have positive views of the process, handoffs are much more successful. But if they experience ambivalence or regret or feel excluded, transitions can become tumultuous. Drawing on extended interviews with outgoing executives, this article discusses the five psychological crossroads that leaders face when they step down and offers advice on what boards and CEOs can do to navigate each one more deftly. [ABSTRACT FROM AUTHOR]

Believing the conventional wisdom that they have roughly 90 days to prove themselves, many new CEOs get into trouble by launching bold initiatives before they’ve won the support and trust they need to effect change. According to a study of nearly 1,400 CEOs, earning people’s confidence actually takes two years. But leaders who focus methodically on gaining it can generate remarkable increases in company value. Drawing on their research and experience, the authors advise incoming CEOs to adopt a patient approach by setting a deliberate pace, picking battles strategically, and engaging stakeholders when the time is right. [ABSTRACT FROM AUTHOR]

When a CEO transition fails, it’s often because the incoming leader isn’t skilled at managing the power dynamics. They’re complex because the key players—the board, the outgoing CEO, and the new one—have different agendas. Designated successors need to understand those dynamics and how best to influence key stakeholders. The authors present four approaches: assertive persuasion, incentives and disincentives, common vision, and openness and involvement. To convince others that they’re ready to take charge, successors must learn how and when to apply them, consider the culture, secure the right allies, and act humbly. Once they take the helm, two other tasks become paramount: winning board support and clarifying and conveying a vision. [ABSTRACT FROM AUTHOR]

To be successful, CEOs must articulate a compelling vision, align people around it, and motivate them to execute it. But there’s one thing that can make or break them: how they respond in real time to unforeseen events. On average, addressing unexpected issues—which range from fluctuations in stock price, to justdiscovered product flaws, to major accidents and crises— consumes 36% of a CEO’s time. That’s a big proportion, and not all those problems merit a leader’s attention. To help CEOs understand which ones they truly need to focus on, Nohria, the former dean of Harvard Business School, has created a framework that sorts events into four categories— normal noise, clarion calls, whisper warnings, and siren songs—and offers guidance on how leaders should handle each type. [ABSTRACT FROM AUTHOR]

In this roundtable discussion, HBR’s editor in chief, Adi Ignatius, leads a conversation among five prominent CEOs: the fashion mogul Tory Burch; Geoff Martha, of Medtronic; Nancy McKinstry, who heads the professional information services firm Wolters Kluwer; Chuck Robbins, of Cisco Systems; and Kevin Sneader, of McKinsey & Company. These executives discuss leadership during the Covid-19 pandemic, how the crisis has affected their companies, and how they are responding. They also speculate on what the future might hold for business: more reliance on digital technology, a new relationship with government, and fresh thinking about social inequality, environmental sustainability, and the delivery of health care. [ABSTRACT FROM AUTHOR]

Some CEOs remain in the role too long, hurting investors, employees, and their own legacy. The author sees a frequent reason for that: CEOs don’t know how to identify the optimal time to retire, and they procrastinate because they can’t imagine what they will do after they leave the job. In this article he presents questions that chief executives can ask themselves to determine the right time for an exit; a step-by-step process for stepping down; and an overview of the options a former CEO may find fulfilling. [ABSTRACT FROM AUTHOR]

How long should a CEO remain in the job? Executives and board members have ideas about this, but they are based on anecdotes, assumptions, and rules of thumb. To get beyond the conventional wisdom, researchers at the recruiting firm Spencer Stuart conducted a study on how CEOs typically perform over their tenure. They found a common pattern of ups and downs, which they’ve divided into five distinct periods. This framework should enable CEOs and boards to communicate more candidly. It may also keep directors from jettisoning a solid CEO during a temporary and predictable period of underperformance or tolerating mediocre performance for longer than they should. [ABSTRACT FROM AUTHOR]

Unlike rankings that are based on subjective evaluations or short-term metrics, HBR’s list relies on objective performance measures over a chief executive’s entire tenure-and these “career numbers” tend to hold steady. It’s no surprise, then, that 65 of last year’s CEOs reappear this year. They do so despite a change in our methodology, made to reflect the fact that a rapidly growing number of funds and individuals now focus on far more than bottom-line metrics when they make investment decisions: For the past four years we’ve weighted environmental, social, and governance (ESG) scores to account for 20% of each CEO’s final ranking. This year we increased that share to 30%. [ABSTRACT FROM AUTHOR]

Vanguard, the mutual fund company known for its low-cost index funds, frequently shows up on lists of organizations with the most-loyal customers—and that’s no accident. During his tenure as CEO, from 1996 to 2008, Jack Brennan emphasized what he calls the virtuous circle of attracting loyal clients who stick around and create new ones through word of mouth. Now Vanguard’s chairman emeritus, he is a leading voice on corporate disclosure issues. Brennan spoke with HBR about why companies should want to tell investors more about their customers—and how soon they may be required to. [ABSTRACT FROM AUTHOR]