​There is much written about the founder’s role after an external CEO is hired to lead the organization. As with everything I write, my perspective is from hands-on experience working with founders and the leaders to whom they will transition accountability for running their organization.
 
Here are the two things I know for sure:
 

1. When a founder remains in the business without a clearly defined new role, her or his impact will impede the effectiveness of the new leader.

 

1. Any new CEO coming in worth their salt will want to do their own assessment of their team and the business. At the interviewing stage, there should be conversations with the board and the founder to make sure that there is alignment on expectations and fit between what they envision for the business and the experience of the candidate. But once the board chooses, they need to let the new CEO do her or his job.

 
When founders stay more involved than they should, their team and others will have a hard time not deferring to them. This creates a lot of inefficiency. The team knows they have a new CEO, but with the founder still involved, they may not know who is in charge. They often feel like they have two bosses and don’t want to be disrespectful to either. Most founders don’t completely understand their impact. They are often so revered for what they have accomplished that it can be very hard for their employees to let them go, especially if they see them in the business.  Even when the executive team knows that the founder is no longer effective, if they are beloved, and they often are, the transition can be even more difficult.
 
The new CEO comes in ready to hit the ground running. They know they have 6-12 months to really set the course for the business. The first 100 days are particularly important. Unfortunately, this is usually the time that the founder is having trouble transitioning out of their role, even if they want to hand over the business.
 
Nobody, especially the founder, is trying to sabotage the business. But that is exactly what happens when the founder stays in the business trying to co-lead with the new CEO. It is a very emotional process to hand over an amazing business you created, nurtured and loved…willed into its very existence. It can be even more difficult to let go of some of the relationships with people who have been in the trenches with you from the start.
 
So, what to do?
 
I recommend that before the new CEO starts, the founder gets help in defining his or her new role.  Reflecting with them on how they can be of best and highest service and how they will be involved are important to explore before they have to hand over the business. Founders can introduce the new CEO to their most important clients and relationships. They can have great insights into the business development opportunities. If they are experts in their fields and they usually are, they can serve as influential advisors on proposals or design and approach. It will also be important for the new CEO and founder to communicate their new roles, the boundaries for each and cascade this to the whole organization (founders have connections at every level).
 
Sometimes founders should exit. The way most are wired, they love to create and start and that is where they will be most happy and effective. This decision should be based on what will be best for the business.
 
The founders I have worked with are passionate about the business they created, want it to succeed and care about the people. Giving up things we love is a courageous act. Knowing that it is the right thing to do doesn’t always make it easier. Underestimating the emotional aspects of this type of transfer of leadership will cause unnecessary confusion and angst. This process requires preparation, respect and care. Founders can often contribute. Defining how is extremely important. 

A client I highly regard and have known for many years recently decided to leave her executive role at her organization. I was surprised. She was very committed to her company and really loved her boss. But she assessed the situation and decided that what she wanted and needed was no longer aligned with her organization. She took a new role for a really cool company.  She will do well. Though this client’s situation is very different from mine, it brought back memories for me of when the CEO to whom I reported resigned. After meeting with the new CEO, I realized I had a difficult decision to make.  Soon after, I left my job. I received two job offers at the time, but after talking with my co-pilot (my supportive and wise husband), I realized it was time to start my own practice. To say I haven’t looked back would be inaccurate. I have, many times.  But overall it has been a great decision and a good fit for me. I always felt that everything was my responsibility, and with my small business, it truly is.
 
When we accept a role at a corporation, no matter who we are, we will need to adapt. The more aligned the organization’s mission, culture and values are with who we are and our way of working, the less adaptation that we will need to make. When we need to adapt in ways that are not aligned with how we want to lead or the values we hold, that requires a different level of adaptation. Both scenarios represent sacrifices because we are giving up something we at least like or hold dear in order to remain in our organization. When these sacrifices start to diminish our energy or the joy we feel when we head to work, it’s time to assess if the sacrifices are worth it.
 
Here are some examples of “sacrifices” that can be good for us:
 

• Working with a boss who has a very different personality or style. If you want to become more effective with people who are different from you – this is a golden opportunity. I am not talking about a mean or abusive boss. That is beyond a personality issue and if you have read my blog for a while you know how I feel about these bosses.
• Getting new team members who are competent but very different from you. Ditto to the above. Are you most effective managing people like you? If you want to get better, figure out what inspires and motivates direct reports and colleague who are different from you. If you learn to be an inspiring leader with a broader range of people, it will prepare you to take on expanded scope and responsibility.
• Changes in process or projects that are different than what you might recommend but that have a lot of support from other competent colleagues. This will help you learn to be more adaptive and probably add some new tools to your belt.

 
Here are examples of sacrifices about which you should be skeptical:
 

• A boss who expects you to work all the time. You would think this expectation is ancient history but it’s not. Some bosses work all the time but don’t expect you to – so check on this. But if they are upset when you don’t respond quickly on a weekend or expect you to work on a vacation – unless you LOVE that – then be wary.  There is way too much research about how time away from work nurtures our health, creativity and ability to innovate. So it’s not even a smart sacrifice to request or make.
• When your CEO or company starts to make strategic changes that are against your informed better judgement (based upon data and analytics), that you believe will negatively impact business, be careful.  This can not only be bad for the business long term, but your heart as well.
• When the culture your leadership espouses is vastly different from what your employee’s experience, and you raise this issue to no avail, stand back and assess. This can be soul crushing to your most committed people, and for you if you care about them. Consider this a sacrifice not worth making for very long.

 
Of course, there are many more examples I could give. When I am working with an executive who is unhappy in their role and I ask if the sacrifices are worth it, they often point to their very large compensation package, their kid’s tuition, etc., as if it's a prison sentence. But in reality, it is a choice. And if it goes on for too long, it can impact the things you hold most dear (and may take for granted): your family, your health and your happiness. Is a job really worth sacrificing any of those?