When Should New CEOs and Executives Shake Up Their Teams?

How do you deal – as a new leader – with a team that you didn’t choose?

New CEOs or executives are often saddled with a team that is not their own.

They are forced to inherit a team that they may not have chosen, and they may have to make difficult decisions to change the course of the company.

This is daunting, but it is also an opportunity for the new leaders to make their own mark and leave their legacy.

I recently read an interesting article where the authors define 4 potential reasons to replace existing team members:

1) Incompetence (or inadequate skills required for the challenge)

2) Signaling the need for change (see below)

3) Disruptive high performers (despite the performance, they can become liabilities when they fail to align with the corporate direction)

4) Personality misfits (personality clashes)

My view: 👇

Signaling the need for change is underrated.

In my experience, many CEOs and senior executives don’t make changes to their teams (or they do it when it’s late) because they are optimistic in nature. They believe that – by changing the perception and the narrative in the organization – their executives will become ambassadors for change and drive it internally.

This is a big risk for companies that require immediate change.

Optimism bias can hurt performance so replacing leaders who can hinder change doesn’t only guarantee effective transformation.

It also gives a strong signal to the whole organization that change is coming.

And this is serious.

What’s your view? Are you dealing with something similar in your organization?

Talking about bias…👇

I’ve just uploaded on YouTube one of the most viewed episodes of 2023 with Caroline Farberger – Former CEO of the Swedish insurer ICA Insurance and the first senior business leader in the Nordics to speak openly about her gender transition, having formerly lived as Carl Farberger. Consequently, Caroline has become an advocate and ambassador for diversity and inclusive leadership.

You can’t miss it. Believe me: Watch it here

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