The CEO Succession Challenge:
How Do Newcomer CEOs Create
Qualitative Collaboration With(in)
Existing Top Management Teams
EURAM – June 21-24, 2017 – Glasgow, Scotland
1
Koen Van Bergen1
Walter Hendriks1
Frank Lambrechts1
Woody van Olffen2
RCEF Research Center for Entrepreneurship and Family Firms, Hasselt University, Belgium
2 TIAS School for Business and Society / Tilburg University, The Netherlands
Introduction
 An increasing interest has started to develop in the early
tenure of newly appointed CEOs (e.g., Denis, Langley, &
Pineault, 2000; Karaevli & Zajac 2013; Quigley & Hambrick
2012; Xuan, 2009).
 Denis et al. (2000: p. 1064): ‘(for a new CEO) the process of
entering, understanding and mastering a new organization is
far from simple’.
 The upper-echelons perspective proposed by Hambrick and
Mason (1984) shifted the focus of analysis away from the
formal CEO as individual towards the CEO as embedded in a
TMT.
2/23
Introduction
 The arrival of a new CEO in an existing TMT creates a crucial
succession challenge, in which the capacity to lead
collectively requires the new CEO and the other TMT members
to develop a qualitative way of working together (Denis
et al., 2000; Denis et al., 2010).
 ‘What type of practices are used by new CEOs during their
early tenure to create a qualitative way of working together
within the TMT?’.
 Zaccaro, Rittman, and Marks (2001: p. 452): ‘we know
surprisingly little about how leaders create and manage
effective teams.’ Miller (1993: p. 656): ‘a lot of studies on
leadership succession fail to examine what new leaders
actually do.’
3/23
Research Method
 Sample:
– 14 organizations where a new CEO was appointed between two
years and seven months before the moment of contact.
– The organization needed to have an existing TMT and the new
CEO should not have had working experience with all the
members of the TMT.
– All organizations were financially healthy at the beginning of the
new CEO’s tenure. Organizations were privately held with an
average number of employees of 440. Our final sample consisted
of one female CEO (7%) and thirteen men (93%). The average
age of the new CEOs was 47.9 years (SD=3.8), with an average
general working experience of 24.5 years (SD=4.5). Average
tenure of the new CEOs in the organization was 15.6 months
(SD=5.2). Finally, the average number of TMT members was 5.4
(SD=2.4) at the beginning of the new CEO’s tenure and 6.5
(SD=2.1) at the moment of participation.
4/23
Research Method
 Sample:
Description of Succession Cases
Case
#1
Industry
Waste Management
CEO
Washington
#2
Wholesale & Retail Trade
Adams
#3
Support Services
#4
Size TMT
at start
5
Size TMT at
participation
6
10
8
Jefferson
6
6
Information & Communication
Madison
5
8
#5
Wholesale & Retail Trade
Monroe
4
4
#6
Accounting Activities
Jackson
5
9
#7
Wholesale & Retail Trade
Van Buren
7
8
#8
Construction
Harrison
4
8
#9
Wholesale & Retail Trade
Tyler
3
3
#10
Wholesale & Retail Trade
Polk
3
4
#11
Wholesale & Retail Trade
Taylor
10
10
#12
Food Service Activities
Fillmore
2
4
#13
Wholesale & Retail Trade
Pierce
7
7
#14
Wholesale & Retail Trade
Buchanan
5
6
5/23
Research Method
 Data collection procedures & measures:
– A revised version of the Retrospective Interview Technique
(RIT) (Bullis & Bach, 1989; Erbert et al., 2005; Huston, Surra,
Fitzgerald, & Cate, 1981), RIT graph.
Quality of The Way The TMT is Working
Together
100 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Time
6/23
Research Method
 Data collection procedures & measures:
– A revised version of the Retrospective Interview Technique
(RIT) (Bullis & Bach, 1989; Erbert et al., 2005; Huston, Surra,
Fitzgerald, & Cate, 1981), RIT graph.
Quality of The Way The TMT is Working
Together
100 %
Case #7:
CEO Van Buren
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Time
7/23
Results
Frequency
%
Number of CEOs
Employing these
Practices
Early Exploration & Understanding
37
14.3
10
71.4
Task-focused Behaviors
52
20.1
11
78.6
170
65.6
14
100
Category
Person-focused Behaviors
%
259
8/23
Results
Category
Early Exploration & Understanding
Frequency
%
Number of CEOs
Employing these
Practices
37
14.3
10
%
71.4
“What is very crucial, is that I first tried to understand everything when
I arrived here. Understanding why things were happening a certain way.
The first weeks, I just talked a lot with all the people here. I listened to
them, asked them questions about the company, the team, their
expectations. That’s very, very important. Don’t judge, just look around,
listen, and try to understand the team and the persons you have to work
with.” (CEO Adams)
9/23
Results
Case #2:
CEO Adams
Case #12:
CEO Fillmore
100 %
Quality of The Way The TMT is Working
Together
Quality of The Way The TMT is Working
Together
100 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
10 %
0%
0%
Time
Time
10/23
Results
Category
Task-focused Behaviors
Enabling Structure Creation
Promoting Norms of Conduct
Designing The Work
Influencing Team Composition
Initiating Structure
Frequency
%
Number of CEOs
Employing these
Practices
52
52
2
21
15
14
20.1
20.1
0.8
8.1
5.8
5.4
11
11
2
11
9
10
%
78.6
78.6
14.3
78.6
64.3
71.4
11/23
Results
Category
Task-focused Behaviors
Enabling Structure Creation
Promoting Norms of Conduct
Designing The Work
Influencing Team Composition
Initiating Structure
Frequency
%
Number of CEOs
Employing these
Practices
52
52
2
21
15
14
20.1
20.1
0.8
8.1
5.8
5.4
11
11
2
11
9
10
%
78.6
78.6
14.3
78.6
64.3
71.4
Designing The Work:
“Before, we had team meetings every two weeks. I didn’t like those
meetings. I was not aware of the issues we were going to talk
about and there was never a clear conclusion. Those meetings
made no sense for me. Our new CEO introduced monthly meetings
with a structured agenda. I am allowed to put issues on the agenda
myself and the agenda is pre-distributed before. I really like these
meetings now. Everybody is well prepared, we work together as a
team and end every discussion with a clear conclusion about the
next steps to take.” (TMT member case #8)
12/23
Results
Category
Task-focused Behaviors
Enabling Structure Creation
Promoting Norms of Conduct
Designing The Work
Influencing Team Composition
Initiating Structure
Frequency
%
Number of CEOs
Employing these
Practices
52
52
2
21
15
14
20.1
20.1
0.8
8.1
5.8
5.4
11
11
2
11
9
10
%
78.6
78.6
14.3
78.6
64.3
71.4
Influencing Team Composition:
“It was quickly clear for me that she (TMT member) was not the
right person for that job. I removed her from the team and hired
someone external. From all the candidates we had for that job, he
really stood out. I had already worked together with him at a
previous job, so I knew he had the right competences. However,
the other members of the team didn’t know him. It was important
for me that we were all able to deal with each other so we could
work together as a team.” (CEO Polk)
13/23
Results
Category
Task-focused Behaviors
Enabling Structure Creation
Promoting Norms of Conduct
Designing The Work
Influencing Team Composition
Initiating Structure
Frequency
%
Number of CEOs
Employing these
Practices
52
52
2
21
15
14
20.1
20.1
0.8
8.1
5.8
5.4
11
11
2
11
9
10
%
78.6
78.6
14.3
78.6
64.3
71.4
Initiating Structure:
“I brought specialization in the TMT. Some people here were
doing the same things. I clearly made a description of the roles
they had to do. Be careful, it’s not that I just said to them ‘now
you have to do this’. I explained to them what the problem was
and why it needed to change. We talked about this in group and
individually during which they were able to give me suggestions. I
realized this was not easy for them, but now they do tell me that
the new structure is much better.” (CEO Van Buren)
14/23
Results
Category
Person-focused Behaviors
Transformational Leader Behaviors
Idealized Influence
Articulating Inspirational Motivation
Intellectually Stimulating Followers
Individualized Consideration
Consideration
Empowerment Behaviors
Motivational Behaviors
Frequency
170
83
8
28
10
37
62
17
8
%
Number of CEOs
Employing these
Practices
%
65.6
32.0
3.1
10.8
3.9
14.3
23.9
6.6
3.1
14
14
6
14
9
14
14
11
7
100
100
42.9
100
64.3
100
100
78.6
50.0
15/23
Results
Category
Person-focused Behaviors
Transformational Leader Behaviors
Idealized Influence
Articulating Inspirational Motivation
Intellectually Stimulating Followers
Individualized Consideration
Consideration
Empowerment Behaviors
Motivational Behaviors
Frequency
170
83
8
28
10
37
62
17
8
%
Number of CEOs
Employing these
Practices
%
65.6
32.0
3.1
10.8
3.9
14.3
23.9
6.6
3.1
14
14
6
14
9
14
14
11
7
100
100
42.9
100
64.3
100
100
78.6
50.0
Articulating Inspirational Motivation:
“Structural changes in the team were necessary. When I presented this
message to the team, I used a photo of a F1-car making a pit stop. I
said ‘this is where we have to go to’. All those people are standing
around that car, they all have their own job, but they share the same
objective. That’s how we have to work here, different roles, but one
team, one objective. If you want to initiate change in your team, it’s
important to inspire them.” (CEO Adams)
16/23
Results
Category
Person-focused Behaviors
Transformational Leader Behaviors
Idealized Influence
Articulating Inspirational Motivation
Intellectually Stimulating Followers
Individualized Consideration
Consideration
Empowerment Behaviors
Motivational Behaviors
Frequency
170
83
8
28
10
37
62
17
8
%
Number of CEOs
Employing these
Practices
%
65.6
32.0
3.1
10.8
3.9
14.3
23.9
6.6
3.1
14
14
6
14
9
14
14
11
7
100
100
42.9
100
64.3
100
100
78.6
50.0
Articulating Inspirational Motivation:
“He (new CEO) wanted us to take on a slightly different role within the
team. What I really appreciated is that he took the effort to share his
vision with us. He explained in detail the disadvantages of our current
way of working and the benefits of the new structure he wanted to
introduce. If he hadn’t done this, I don’t think I was really convinced
that changes were necessary. His story made me aware of it.”
(TMT member case #12)
17/23
Results
Category
Person-focused Behaviors
Transformational Leader Behaviors
Idealized Influence
Articulating Inspirational Motivation
Intellectually Stimulating Followers
Individualized Consideration
Consideration
Empowerment Behaviors
Motivational Behaviors
Frequency
170
83
8
28
10
37
62
17
8
%
Number of CEOs
Employing these
Practices
%
65.6
32.0
3.1
10.8
3.9
14.3
23.9
6.6
3.1
14
14
6
14
9
14
14
11
7
100
100
42.9
100
64.3
100
100
78.6
50.0
18/23
Results
Category
Person-focused Behaviors
Transformational Leader Behaviors
Idealized Influence
Articulating Inspirational Motivation
Intellectually Stimulating Followers
Individualized Consideration
Consideration
Empowerment Behaviors
Motivational Behaviors
Frequency
170
83
8
28
10
37
62
17
8
%
Number of CEOs
Employing these
Practices
%
65.6
32.0
3.1
10.8
3.9
14.3
23.9
6.6
3.1
14
14
6
14
9
14
14
11
7
100
100
42.9
100
64.3
100
100
78.6
50.0
Individualized Consideration:
“There are two persons here who also aspired the job of CEO. When I
started here, I became aware of it, so I very quickly approached them
to talk about this. I had very long talks with them individually. We
talked about their expectations and the vision they had about the
organization. Those talks were very constructive. This is something very
important. If the three of us were not able to deal with each other,
we could never be able to work as a team.” (CEO Madison)
19/23
Results
Category
Person-focused Behaviors
Transformational Leader Behaviors
Idealized Influence
Articulating Inspirational Motivation
Intellectually Stimulating Followers
Individualized Consideration
Consideration
Empowerment Behaviors
Motivational Behaviors
Frequency
170
83
8
28
10
37
62
17
8
%
Number of CEOs
Employing these
Practices
%
65.6
32.0
3.1
10.8
3.9
14.3
23.9
6.6
3.1
14
14
6
14
9
14
14
11
7
100
100
42.9
100
64.3
100
100
78.6
50.0
Consideration:
“There was one person here who just wasn’t willing to move. He was
very negative about most suggestions that I made. We talked about this
extensively, but it did not help. At that moment, you don’t have a lot of
options. If someone is not open for me and is not willing to put effort in
building a relationship, than that person has to go. I cannot take the
risk that his behavior would infect other team members. It would
destroy the whole team.” (CEO Pierce)
20/23
Results
Category
Person-focused Behaviors
Transformational Leader Behaviors
Idealized Influence
Articulating Inspirational Motivation
Intellectually Stimulating Followers
Individualized Consideration
Consideration
Empowerment Behaviors
Motivational Behaviors
Frequency
170
83
8
28
10
37
62
17
8
%
Number of CEOs
Employing these
Practices
%
65.6
32.0
3.1
10.8
3.9
14.3
23.9
6.6
3.1
14
14
6
14
9
14
14
11
7
100
100
42.9
100
64.3
100
100
78.6
50.0
Empowerment Behaviors:
“Before, the budget and policy of my division was developed by our
previous CEO. He (new CEO) gave me more responsibility. Today, I am
responsible for these things myself. Initially, it was somewhat difficult
for me. However, I had a lot of individual talks with him (new CEO)
about how to manage this. I get more recognition now in my job. It
feels much better.” (TMT member case #9)
21/23
Results
Category
Person-focused Behaviors
Transformational Leader Behaviors
Idealized Influence
Articulating Inspirational Motivation
Intellectually Stimulating Followers
Individualized Consideration
Consideration
Empowerment Behaviors
Motivational Behaviors
Frequency
170
83
8
28
10
37
62
17
8
%
Number of CEOs
Employing these
Practices
%
65.6
32.0
3.1
10.8
3.9
14.3
23.9
6.6
3.1
14
14
6
14
9
14
14
11
7
100
100
42.9
100
64.3
100
100
78.6
50.0
Motivational Behaviors:
“She (TMT member) had a lot of stress, coming from family problems.
I noticed it also started to influence her job and the way she was
dealing with other people. I approached her individually to talk about
this and brought her in contact with a therapist I knew. It really helped
her to deal with her problems. I received a lot of gratitude, not only
from her, but also from other team members who were aware of her
family problems.” (CEO Taylor)
22/23
Results combined
23/23