- by Jane Halford & ChatGPT

Think about your organization for a moment.

You wouldn’t start a major initiative, a strategic plan, a system implementation, or a capital project without first agreeing on how success will be measured. You might call those measures Key Performance Indicators or KPIs. You might call them metrics, OKRs, or rocks. The terminology isn’t the point.

What the point is this:

A CEO transition should be measured with the same discipline as any other major organizational initiative.

Yet many organizations enter a CEO transition without clearly defining what success looks like or how they’ll know whether the transition is on track.

That’s where CEO Transition KPIs come in.

A CEO Transition Is a Project — Measure It Like One

The highest-performing boards and leadership teams define their CEO transition KPIs at the very beginning of the process. Those KPIs then become the shared reference point for everyone responsible for executing the transition, including the outgoing CEO, direct reports, external advisors, and the board itself.

Depending on the organization, KPIs may be reviewed weekly, monthly, or quarterly, and often extend through the first year of the incoming CEO’s tenure.

Without KPIs, boards are left reacting to symptoms rather than managing the transition proactively. With KPIs, they can monitor progress, surface risks early, and make course corrections before issues escalate.

CEO Transition KPIs Are Not a Performance Review

This distinction matters.

Transition KPIs are not a performance assessment of the incoming CEO.

They are focused on how the transition itself is unfolding. Measuring progress of the change from one CEO to the next and, then, focusing on progress on transition priorities such as learning, relationship building, and early momentum.

A capable CEO can still struggle if the transition is poorly managed. If key relationships aren’t prioritized, expectations aren’t aligned, or critical context isn’t transferred effectively. Transition KPIs keep the focus where it belongs: on the quality, pacing, and effectiveness of the transition process.

What Do CEO Transition KPIs Measure?

Effective CEO Transition KPIs include both measurable milestones and qualitative indicators. You need both.

Examples include:

Handover and exit

• The handover between CEOs is effective and viewed positively by the outgoing CEO, incoming CEO, board, and senior team

• The outgoing CEO concludes their role with their preferred focus and exit experience

• Contributions of the outgoing CEO are appropriately recognized and celebrated

Relationships and credibility

• Key internal and external stakeholders are identified and scheduled into the incoming CEO’s calendar

• The incoming CEO is building productive relationships with staff, the board, and key external partners

• External stakeholders proactively engage with the incoming CEO, indicating confidence in their leadership

Early priorities and alignment

• The board and CEO confirm alignment on the top three to five priorities at 30 and 90 days

• Decision-making authority is clearly defined and communicated early in the CEO’s tenure

Readiness and integration

• The incoming CEO is media-ready and understands the organization’s reputation and stakeholder environment

• Briefings on strategy, finances, risk, and political context occur before arrival and throughout the first three months

Some of these KPIs are time-bound and easily tracked. Others are more qualitative and require judgment and dialogue. Both are essential.

If you know where you’re going, you’re far more likely to get there.

Who Develops and Monitors Transition KPIs?

In well-governed CEO transitions:

• The Internal Transition Team drafts the KPIs and, once approved by the board, operationalizes them

• The Governance Oversight Committee of the board monitors progress and emerging risks

• The Board finalizes the KPIs and uses them as a transition report card

This structure ensures accountability without slipping into micromanagement. 

The most effective transition KPIs are developed in consultation with the incoming CEO, the outgoing CEO (where appropriate / available), senior leaders, and the board. When everyone understands how success will be measured, expectations are clearer, conversations are more productive, and issues are addressed earlier — not after they’ve become problems.

A Shared Measure of Success

A CEO transition is not something the board manages alone, nor is it something the incoming CEO navigates in isolation.

It’s a team sport - everyone can make a positive impact on your new CEO's success.

Measure the Transition, Not Just the Outcome

CEO transitions rarely fail overnight. They falter quietly, early, and without clear indicators of success.

Defining CEO Transition KPIs creates discipline, clarity, and shared accountability. It turns an inherently complex moment into a managed process — and significantly increases the likelihood of a successful transition.

Download our free CEO Transition Resource Kit tailored for boards, senior leaders, and CEOs.

Tip: Use our free AI tool, Ask Jane, to generate a customized set of CEO Transition KPIs tailored to your organization.