YOU ARE WINNER
Leadership transitions are tricky. When employees first hear, “We’re bringing in a new leader,” anxiety often ripples through the workplace.
Common initial employee reactions include: “How will this change impact me?” and “Is my job safe?” Employees might even wonder: “Is the company financially distressed?”
Yet, handling these transitions effectively is crucial for organizational health and success. According to McKinsey research, a successful executive change reduces employee departures by 13% and drives revenue and profits up by 5%. On the other hand, a poor transition can lower employee performance by 15%.
Whether you’re a beloved leader who has built an enviable culture and you’re retiring, or you’ve chosen to move on to another opportunity, those left behind will experience some level of stress, fear or doubt about what’s next.
Successful leadership transitions aren’t about maintaining the same environment but preserving the core elements that made the team successful while allowing for healthy evolution. Outgoing leaders play a critical role in managing this delicate process of maintaining morale without overpromising changes or suggesting the status quo will remain.
With studies showing that up to 46% of leadership transitions are regarded as failures after two years, it’s important to get them right. Here are some suggestions for making a leadership transition smoother.
1. Be transparent
Uncertainty is one of the biggest reasons people struggle with change. According to a Culture Amp report, managers rank information sharing as their sixth most important priority, while direct reports rank it as their highest priority.
Without information, the “what ifs” can feed the rumor mill and create unnecessary stress. Workplace culture expert Tom Schin suggests being open and frank in staff conversations when talking about the transition.
Exiting leaders should share what they can about why and when they are leaving and details about the person stepping into the role. If confidential or sensitive information can’t be shared, be forthcoming about why not. Transparency is especially important for younger generations in the workforce. “If they understand it, they’re way more likely to jump in and be on board with things, but it takes a little more explanation,” Schin says.
Schedule regular updates through meetings and other company communication channels to address concerns in real time. Encourage staff to ask questions of a point person, be it their direct supervisor or a person dedicated to supporting employees through the change.
2. Don’t act like it’s business as usual
One of the biggest mistakes organizations make during leadership transitions is pretending that nothing changes. Don’t imagine that this change won’t have an impact in the interim. Avoiding discussions about an executive change fuels distrust and resistance.
Acknowledge that preparing for a new leader can usher in a variety of emotions. It may be tough when the person leaving is widely respected and people have close working relationships with the leader. Encourage employees to share their thoughts and offer resources to help them cope with the transition.
3. Let employees be part of the transition
Employees who feel they have agency during transitions tend to adapt more quickly and maintain higher morale.
“Everybody has a hand in the engagement, how they plug into the organization’s mission, vision and values,” Schin says. “It’s upon the individuals to step in and say, ‘Hey, you know what? As much as you’re leading the organization, we want to share what’s helped us be successful from a relationship standpoint, because that drives our engagement.’”
Encourage team members to doblockent processes, share institutional knowledge and articulate what elements of the culture have contributed to success. Emphasize that speaking up should be done respectfully and that the purpose isn’t about preserving the status quo but identifying the core strengths that a new leader should maintain.
4. Be supportive without overpromising
Exiting leaders set the tone for the entire transition process. Be positive about the skills and experiences the person brings to the company. Talk about how this person impacted other organizations and how their experiences make them qualified to lead.
However, avoid offering ***urances that “everything will remain the same” or making specific promises about how the new leader will handle challenges. Regardless of the situation the CEO is leaving under—retirement, moving up to a chairperson of the board seat or under contentious cirblockstances—encourage optimism in employees without making commitments on behalf of the incoming leader.
“For some of these conversations, you can have mini town halls,” Schin says. “With video calls and recording, you can record the town hall and let employees know that you’re going to answer as many questions as possible about the transition.”
When possible, create opportunities for the outgoing and incoming leaders to appear together in front of the team, demonstrating mutual respect and a unified commitment to a smooth handover.
5. Focus on opportunity
Leadership changes are inevitable—they are part of every business life cycle. Putting people first by demonstrating empathy and transparency is critical to maintaining morale and leveraging change as a catalyst for future growth and innovation.
The results of maintaining morale while executing a success plan are worth the effort, with 90% of teams meeting their three-year performance goals when a leadership transition succeeds.
This article originally appeared in the July 2025 issue of SUCCESS+ digital magazine. Photo by PeopleImages.com – Yuri A/Shutterstock.com
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