Jove
Visualize
Contact Us
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Videos

The CEO's second act.

David A Nadler1

  • 1Mercer Delta Consulting, New York, USA. david.nadler@mercerdelta.com

Harvard Business Review
|February 9, 2007
PubMed
Summary
This summary is machine-generated.

CEOs often fail when facing new challenges because their past successes don't apply. Adapting to new demands requires introspection and humility, with four choices for navigating career transitions.

Related Concept Videos

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by
Same author

Confessions of a trusted counselor.

Harvard business review·2005
Same author

Building better boards.

Harvard business review·2004
See all related articles

Area of Science:

  • Business Strategy
  • Organizational Behavior
  • Leadership Studies

Background:

  • Companies often replace underperforming Chief Executive Officers (CEOs) with individuals perceived to possess superior skills for addressing specific challenges.
  • This selection is frequently based on a candidate's past successes in similar situations, overlooking the potential for future challenges to differ significantly.

Purpose of the Study:

  • To analyze the common pitfalls CEOs face when transitioning from initial successes to subsequent, unfamiliar challenges.
  • To explore the adaptive strategies available to CEOs and the rare qualities required for successful navigation of these career "second acts".

Main Methods:

  • Conceptual analysis of CEO career trajectories and performance.
  • Case study examples (Carly Fiorina, Stanley O'Neal, Sergey Brin/Larry Page, Ken Freeman) illustrating different CEO responses to evolving challenges.

Related Experiment Videos

Main Results:

  • CEO success in an initial phase (Act I) does not guarantee success in subsequent phases (Act II) due to changing problem landscapes.
  • The skills and temperament effective in Act I may be detrimental in Act II.
  • Four CEO choices exist: resist change (leading to replacement), adapt and learn new skills, downsize/circumscribe role, or plan for succession.
  • Adaptation, role adjustment, and succession planning are viable strategies, unlike outright resistance.

Conclusions:

  • Successful navigation of a CEO's "second act" necessitates recognizing evolving challenges, accepting feedback, understanding the shift, and taking decisive action.
  • The most effective strategies (adaptation, role adjustment, succession) require rare qualities like self-awareness, introspection, and humility.
  • Resistance to change is a failing strategy, highlighting the need for continuous leadership development and adaptability.