Planning for Change: CEO Transitions

PLANNING FOR CHANGE: CEO TRANSITIONS
© MWW GROUP, ALL RIGHTS RESERVED 1
PLANNING FOR CHANGE:
CEO TRANSITIONS

NavigatingaCEOtransitionis a critical time for any
company—handledpoorly, itcanhave dire effects on
thecompany’soverallbrand, culture, operations and,
ultimately,thebottomline. Executed correctly, however,it
canreshapeacompany’s reputationand catapultthebrand
intothelimelight.CEOtransitions are oftenchallenging
foracompany,buthowthey are executed canhave serious
consequencesforabrand, now more than ever before.

"You’re expected to prove yourself from day one.” – JEFF IMMELT, CEO, GE
OF S&P 500 COMPANIES
APPOINTED A NEW CEO
IN 2013 1
OF NEW CEOS DEPART
WITHIN 18 MONTHS OF
THEIR APPOINTMENT 3
OF SUCCESSION ANNOUNCEMENTS AMONG S&P
500 COMPANIES IN 2012 EXPLICITLY STATED THAT
THE INCOMING CEO WAS IDENTIFIED THROUGH
THE BOARD’S SUCCESSION PLANNING PROCESS 4
OF S&P 500 COMPANIES
FACING A CEO
SUCCESSION HIRED
AN OUTSIDER 2
DEPART
WITHIN FOUR
YEARS 3
10
40
ONLY22.9
23
64

WE TRUST PEOPLE, NOT COMPANIES
CEO REPUTATION
A CEO transition is the perfect opportunity to enhance a company’s overall relevance in the
marketplace by focusing on its greatest available asset – the CEO.
With a CEO transition comes the
opportunity to craft a communications
program that builds CEO eminence,
creates a distinct voice and POV for the
brand, and establishes trust among key
audiences in order to assert relevance in
the personal brand of the new CEO and
chart a new path forward.
PRODUCTS & SERVICES
PRODUCTS & SERVICES
TALENT
CLIENTS&CUSTOMERS

KEEP CEO TOP OF MIND
Leaders are judged by the company
they keep, the team they build and
their contributions beyond this quarter.
Employ a “Company You Keep”
philosophy, pursuing business venues
and initiatives based on “who” is
involved and the connectivity to executive
platforms. How you define your peer set,
the groups you choose for partnerships,
the organizations you support, even
the places where you choose to speak,
all contribute to your reputation – and,
ultimately, the company’s bottom line.
OF GLOBAL C-SUITE EXECUTIVES
NAME REPUTATION RISK AS THE
TOP STRATEGIC RISK 5
CEO REPUTATION
INFLUENCES ALMOST
ONE-THIRD OR
OF INVESTMENT
DECISIONS 6
40
32

CULTIVATE THE RIGHT RELATIONSHIPS
From clients and employees to Wall Street and the media, it’s important to facilitate the development of trust among key
stakeholders to make a difference in the short- and long-term. A new leader must methodically explore the landscape, ask key
questions, speak to representatives both inside and outside the organization, and keep communication lines open. A new CEO
must seize this opportunity to cultivate ambassadors and build trust, which can pay huge dividends in the long-term.
CEO BRAND
CUSTOMERS
GENERAL
PUBLIC
CURRENT /
PROSPECTIVE
EMPLOYEESONLINE
INFLUENCERS /
BLOGOSPHERE
POLICYMAKERS /
REGULATORS
ANALYSTS
MEDIA
ACADEMICS &
INFLUENCERS

INFLUENCE THE INFLUENCERS
20%
OF THE TOP INFLUENCERS 80%
OF THE CONVERSATION
An incoming CEO must establish personal and relevant connections with those audiences that have the greatest opportunity to
influence behavior and engage others. Connect with the people who are the game-changers for your business, including industry
experts, analysts, policymakers and government officials. If you don’t proactively tell your story, others will write it for you, so
control the conversation from the get-go. Architecting the conversation is about knowing who is relevant, when, how and why…
and if you’re not a part of the conversation, you’re just part of the noise.

DEVELOP CONTENT THAT MATTERS
Engaging across multiple channels from the outset with
scalable content immediately builds momentum and captures
attention. Actively listen to key stakeholders—both online
and off—to gain insights into brand perception, see how they
engage, and find out who they turn to for information. Leaders
must speak to as many people as possible to find out brand
opinions and establish a shared vision. Then, with all of this
information gathered, create and leverage company content
in a way that is relevant to the market and reflective of an
energized, focused CEO and leadership team ready to execute
a strategic vision.

CAPITALIZE ON THE FIRST 100 DAYS
The first 100 days of a CEO transition is a vital time; it is when first impressions of the new chief are
created and trust in the leadership’s vision and ability is established. This is an opportunity for CEOs
to create vision, strategy and expectations.
This initial period can be the determining
factor of a successful CEO transition,
which builds substantial stature
and goodwill that can accelerate
growth for the brand, or it can result
in a reputational deficit that can
be a distraction and drag on your
organization’s positive momentum. In
many ways, a CEO transition strategy is
comparable to the launch of a political
campaign, where the CEO is a candidate
running for office.
TO SUCCEED, THE CEO NEEDS TO FOCUS ON THE KEY ELEMENTS THAT
MAKE UP ANY SUCCESSFUL LEADERSHIP TRANSITION:
IMPACTFUL AND RELEVANT PLATFORMS
DIFFERENTIATING MESSAGES/POVS
BENCHMARKING
RELATIONSHIP BUILDING WITH KEY STAKEHOLDERS
AND LEAD STEER MEDIA

THE 100-DAY PROCESS
“One of the things we often miss in succession planning is that it should be gradual and thoughtful, with
lots of sharing of information and knowledge and perspective, so that it's almost a non-event when it
happens.”– ANNE M. MULCAHY FORMER CEO OF XEROX CORP
The 100-day process is a multipronged
approach to tackling the various
phases of building out a CEO brand and
communications program, including
planning and strategy, the launch phase,
the full program rollout, and sustaining
impact. MWW’s Total Stakeholder
Approach ensures a leadership transition
that is smooth and effective, helping a
CEO brand and company matter more to
key stakeholders.

In order to prepare for a smooth transition, it’s important that the CEO in his/her new role takes the time to build the right
relationships and begins to cultivate engagement with key stakeholders, i.e., the board of directors, employees, analysts, media
and other influencers. MWW’s three-step makes a difference in the primary stages of a CEO’s tenure; it’s a process that enables
the CEO and his/her team to define a unified vision, setting the company up for success over the long haul.
STEP 1: STRATEGY & PLANNING (-60 – 0 DAYS)
Set the stage: The two months leading up to a CEO transition are perhaps the most critical in the process. This is the
time to work a CEO’s closest confidants – marketing & communications, legal, HR, the Board and your leadership team
– to set expectations, develop a shared vision for the brand, cultivate internal and external ambassadors, and ultimately
develop a comprehensive communications plan that will differentiate the CEO and company in the marketplace.
STEP 2: PROGRAM ROLLOUT (0 – 60 DAYS)
Turn vision into action: Once a defined vision and compelling point of view have been established, it’s time to bring the
CEO to market. Effectively put a stake in the ground and grab stakeholder attention through communications tactics
such as speaking engagements, influencer and analyst relations, media meetings, social media, and more.
STEP 3: SUSTAIN MOMENTUM (61 – 100 DAYS)
Amplify impact: The final phase sustains external momentum for the CEO to amplify his/her voice as the future of the
brand. Communications about the company moving forward need to mirror the CEO’s plan and vision.
Each phase has its own set of essential objectives, strategies and tactics to be executed. This roadmap will help your brand
navigate this transition and set your company up for success.

Aleadershiptransitionthatis smooth and effective can
haveanimpactonyourbottomline and strengthenyour
relationshipswithkeystakeholders. Witha strategic
processinplace,younotonly reinforce the CEO’s long-
termvisionforthebrand, butalso setthe company upfor
sustainedgrowthandcompetitiveness.

SOURCES
1. 2013 CEO Transitions, Spencer Stuart
2. CEO Succession Practices: 2014 Edition
3. The Right Leader: Selecting Executives Who Fit, Wiley, 2009
4. CEO Succession Practices: 2013 Edition
5. Exploring Strategic Risk: A Global Survey, Deloitte and Forbes Insights
6. FTI Consulting

FOR MORE INFORMATION, PLEASE CONTACT:
Carreen Winters
Executive Vice President
201.964.2410 | 646.336.4955 | cwinters@mww.com
Cecilia Coakley
Group Vice President
201.964.2395 | ccoakley@mww.com
MWW
304 Park Avenue South, 8th Floor
New York, NY 10010
212.704.9727
MWW.COM
EAST RUTHERFORD / CHICAGO / DALLAS / LONDON / LOS ANGELES /
NEW YORK / SAN FRANCISCO / TRENTON / WASHINGTON D.C.

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