4 Tips for Effectively Communicating a Change in Leadership

In 2024, CEO or top management transitions occurred in record numbers and under circumstances ranging from surprising to shocking. They underscored the age-old business theme that the only constant is change. But what does it mean to company culture, employee productivity and economic growth when top management is replaced?

Let’s consider the causes first and then focus on the impacts. CEO departures can be driven by many factors including marketplace uncertainty, changing business environments and increased scrutiny from shareholders. Inappropriate personal behavior, management disputes and conflict with an overly involved Board can also trigger them.

Many companies are simply seeking new leaders who can navigate digital transformation and sustainability challenges while maintaining profitability. Often, who demonstrate innovative and adaptive leadership styles.

CEO turnover can significantly impact company culture in various ways. A change at the top often leads to shifts in strategic direction, which can alter employees’ roles, expectations and morale. An incoming leader may introduce different management styles and values that can either energize the workforce or create uncertainty and resistance.

What to do When It’s Your Company’s Turn

Leadership changes represent an opportunity to rejuvenate a workforce by presenting a new vision, management style and approach. But the key is having a communications plan in place to comprehensively and transparently deliver the news to all stakeholders, from managers to line employees and customers to shareholders.

Here are Four Tips for Communicating Leadership Transition:

1. Put your employees first

In any communications plan, employees must be the primary consideration. They are the ones that determine if the organization remains productive. A successful transition is only achievable by ensuring they are aware of the selection. Make sure all communications are accessible to every employee and consider cultural nuances and time zones for your global workforce – this demonstrates respect and ensures no one is left out of critical updates.

2. Make the case for the new CEO based on their full skill set

This person is the new “face of the company,” and they must be able to motivate, inspire and establish a keen focus on operational excellence. That’s why the board hired them, so the leadership team must ensure all those attributes are put on display – in person as often as possible – when the introductions begin with relevant audiences. Always lead with the “why” we chose this person and what, if any, changes will be occurring under their leadership.

3. Use the full toolbox to communicate the change

There are many ways to communicate today – town halls, video messages, email and in-person small group meetings. Social channels, text updates, Teams, Slack – even Discord – can supplement these efforts so employees are receiving multiple touch points that reinforce corporate messaging.

4. Explain what it means to me

Whether a team member, a customer, a vendor, a shareholder or a union leader, everyone wants to know what the impact of any change means to them. Don’t be afraid to communicate potentially difficult news in the interest of maintaining harmony. If more changes are coming, and you can demonstrate how they will help the organization be more sustainable, profitable and safe, then communicate it out of the gate.

Even if a CEO change is not in the immediate near future at your organization, we have learned that things can change quickly for a variety of reasons. It’s wise to take the time to prepare a leadership transition plan that is detailed in not only who would potentially succeed existing leadership but how it would be communicated. It’s better to have a strategic plan in place in advance that establishes philosophy, approach and templates than to start from scratch if the need becomes urgent.

If you need help devising that strategic plan, contact us. We’d be happy to offer guidance and support.