- By Sophie Pinkoski

In a board survey at the start of the pandemic, Deloitte found that organizations have been dealing with an increased number of crises than in previous decades. In cycles of crisis like these, it’s important to evaluate where the organization is in its current state of recovery. The board acts as steward of their organization, there to help navigate through uncertain times. As the pandemic progressed, however, one consequence has proven a challenge: the Great Resignation. Many organizations have seen the departure of their CEO as individuals began reassessing their professional goals, pursuing a more intentional career or personal path. When a CEO leaves without time to find their replacement, or the organization needs more time to find their long-term CEO an interim CEO may be required to maintain leadership continuity.   

Navigating a CEO change means evaluating exactly what type of leader is needed to see the organization through the next phase. Having an interim CEO in place gives the board time to identify the shift in priorities to build resilience within their organization. In the meantime, an interim leader can do what is needed in the organization including making difficult decisions and changes to the organization so the next CEO won’t have to, thus setting them up for success. The board and interim CEO must work in tandem in a culture of trust and honesty to make the best decisions to allow the organization to survive and thrive in this critical time of transition.  

Here are ways the board and interim leader can effectively manage a transition together: 

Establish roles and expectations— Picking the right interim leader is entirely dependent on your organization’s situation and needs.

A well-maintained succession plan will have a designated list of senior executives who could realistically take on the role of the interim CEO.

The people on this list should be made aware of their potential responsibilities to avoid putting them on the spot when the situation occurs. Once an interim CEO is chosen, it’s important to set clear parameters and expectations for the role. If no timeline is known for their term, start with setting 90-day priorities and goals. If the term extends longer, reassess each 90 days or until a specific timeline is defined.

Communicate with transparency—Both internal and external communications are key to a successful transition period between interim and incoming leaders. The board has a responsibility to safeguard the organization’s reputation while navigating through a transition. Stakeholders, the media, and the community will all be looking to the interim CEO to steer the organization through their term.

 Open communication between the board and interim CEO to prepare the appropriate response to these expectations ensures external updates address key stakeholders' greatest concerns in a clear and timely manner.

Plan strategically—The uncertainty that comes with unpredictable state of today's world means it may be difficult to anticipate where the organization will be in the year ahead and beyond. It’s important to continue prioritizing long term thinking while supporting an interim CEO. Discussions between the board and interim CEO will clarify the balance between immediate operating priorities and moving towards the long-term, strategic goals.

Strategic discussion with the board should be balanced with what can be realistically expected of an interim CEO and an organization managing a leadership transition.

Boards often assume that no organizational crisis will occur during the interim CEO's tenure. Early in the interim leader's tenure, the board and interim CEO should review crisis playbooks. That includes the plan if the interim CEO is not available to complete their term. If this step has been taken, the board and other executives will be equipped to respond to an unplanned situation. Board Intelligence suggests that “sufficient preparation for a crisis is the best strategy to manage one”. The more prepared the board can be for a crisis, the more sensitive they will become to identifying warning signs before they can escalate further. 

The collaborative relationship between the board and interim CEO is critical during transition. By establishing clear roles and expectations, maintaining open communication, planning strategically, and supporting the interim CEO, the board can ensure the organization not only survives, but thrives. This partnership is the backbone of effective transition management, allowing the organization to emerge from this period with momentum to support the next CEO. 

Further Reading 

The Role Of The Board Of Directors During Crisis, Forbes 

Emergency Succession - The Interim CEO, Savvy Director 

During Times of Crisis… What Should Boards Do? LinkedIn 

The Board’s Role in Crisis Management, Osler 

Stepping In: The Board’s Role in Crisis Management, Deloitte 

Effective Interim Transitions: Key Takeaways for Boards of Directors, ASAE Research Foundation 

Effective Interim Transitions: Key Takeaways for Interim CEOs, ASAE Research Foundation