How to know when it's time to go - Women's Agenda

How to know when it’s time to go

There are three kinds of leaders: those who excel at startups, those who fix or grow the business and those who are skilled at getting the most out of mature businesses.

Some managers are capable of delivering great outcomes across two of the three stages but it’s rare that one person has the capability for all three. Great organisations recognise this – and that’s why they continue to be great. But too often leaders are appointed by boards based on a desired CEO skill set rather than an understanding of fit with the company’s lifestage or market challenge.

I once worked for a CEO in a startup organisation who earned his stripes stripping costs from large, mature organisations and readying them for sale. He was an accountant by profession and was extraordinarily skilled at being able to identify a cost. Unfortunately he had no idea about growing a business. When he was put in charge of a startup blind Freddy – but not the board – could see that it would end in tears. Costs were stripped out before the business had the chance to fly. I am still amazed at how quickly the company shrank in size and opportunity. Eighty percent of the company lost their jobs but he still has his.

Poor leadership appointments are not restricted to startups. There are countless large organisations that hang on to a CEO beyond the point of everyone else’s disbelief. They tell themselves that the person in charge is the best qualified for the role, the most experienced around. But they don’t consider that the person may be the perfect leader for different market circumstances.

Most leaders won’t willingly move on, primarily for reasons of job security or a fat paycheck, even if they know they have stopped adding value. Mark Bilton, CEO of Gloria Jeans Coffees isn’t one of them. Earlier this year, shortly after his appointment to the role, he addressed a meeting of franchisees to share his turnaround strategy with them. A number of strong competitors had entered the market in recent years and Bilton, a former non-executive director of the coffee chain, could see that the business needed a leader with a change management skill set. He had made a career out of that skill so he put his hand up for the job.

One of the franchise partners, who clearly liked what he heard, asked him if he would be around for a while. Bilton was upfront with his response. He explained that his management skill was to fix a company and point it in the right direction. Once he was satisfied the company was back on course he would look at stepping away so a manager with the skill set to execute the strategy along those lines could take over the management of the company. He joked that he would then go in search of the next problem child to fix. But he wasn’t really joking. His CV indicates that’s exactly what he will do.

I told Bilton that his speech resonated with me because without having previously analyzed it, it’s exactly the kind of manager that I have become.

Every management role I have taken, from my very first editing position, has focused on fixing or launching. I have always known when it was the right time to step aside and I have never been afraid to do so. It comes down to understanding your skill set, experience and value-add proposition.

If you are truly committed to the organisation then the decision should be an easy one, if there is another opportunity to pursue. Ideally the next challenge would be within the same organisation but that takes a visionary leader and Board to identify.

Have you been able to identify the right time to move on from a role?

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