Key Actions and Considerations for a Retiring CEO:
Insights from an Insider Who's Been There, Done That

By Mary Connor, CAE
President, SMG Association Consulting, LLC
VP of Client Relations, Stringfellow Management Group

With over 25 years of experience in association management and consulting on a wide range of issues, from governance reorganization to strategic planning, it’s clear that many associations are still not prioritizing succession planning at the highest levels of leadership.

I’ve guided organizations through the complexities of leadership transitions, including several associations for whom I served as CEO, as I directed my personal exit strategy and sale of a small AMC, years ago. As head of business development at Stringfellow Management Group, a Baltimore area-based AMC, I have onboarded many associations noting significant challenges with organizational leadership and an overall lack of mindshare from senior association actors.

Associations Now recently published an article entitled, Why CEOs Need to Plan Their Exits, by Mark Athitakis, which underscores the importance of prioritizing succession planning strategies. The article aptly states, "Even if you’re not heading out the door anytime soon, it’s crucial to be thinking about what succession planning will look like in your organization."?

Associations and their management teams should be proactive in establishing succession plans for the future management of the association, albeit, that is easier said than done. One of the most effective strategies is placing an interim Executive Director or other key managers during these transitions. This provides organizations with stability and the time needed to find the right permanent leader. Below are essential actions and considerations for retiring CEOs as they prepare to step down, based on both industry best practices and my work at SMG Consulting.

• Start Succession Planning Early: Succession planning should never be an afterthought. I often advise clients to engage in succession planning long before they announce their retirement. Starting early gives the board time to thoroughly assess both internal and external candidates, ensuring the next leader aligns with the organization’s future goals. As Associations Now notes, “it’s crucial to be thinking about what succession planning will look like” as part of a long-term strategy. Early planning mitigates risks and allows for smoother transitions, a key principle in my consulting work at SMG.
• Evaluate Internal Candidates: Organizations often debate whether to promote internally or seek an external candidate. Internal candidates bring continuity, and their deep understanding of the association’s culture can be invaluable. However, external candidates may offer new perspectives and innovations, which can be critical for the future. In my experience at SMG, the best transitions often involve considering both, ensuring the decision aligns with the organization’s long-term strategy.
• Create a Transition Timeline: One of the first things I recommend when consulting on CEO transitions is developing a clear timeline for retirement. This includes planning the announcement, finding an interim director, and setting a schedule for the onboarding process of the new CEO. At SMG, we stress the importance of a phased approach to minimize disruption and keep operations running smoothly during the interim period.
• Prepare the Board: Boards often need guidance on how to manage transitions effectively. A well-prepared board is essential to a successful CEO transition. At SMG, we focus on helping boards develop leadership training programs and risk management strategies that support a seamless handover of responsibilities. A board that is well-versed in these issues will be better equipped to make informed decisions on succession.
• Communicate with Stakeholders: One of the most overlooked aspects of a CEO transition is communication. As I tell my clients, communication is key to maintaining stakeholder confidence. Transparent and regular updates to staff, members, and external partners will ensure that everyone remains confident in the association's direction, even as leadership changes. A proactive communication plan helps mitigate any fears or uncertainties.
• Support the Incoming CEO: I often see outgoing CEOs struggle with stepping back once their successor is in place. It’s essential to offer mentorship if requested but to avoid micromanaging the new leader. At SMG, we coach outgoing CEOs on how to provide support without overstepping, allowing the new leader to establish their own authority and style?.
• Document Institutional Knowledge: Another critical aspect of a smooth transition is ensuring that institutional knowledge isn’t lost. I work with clients to ensure that key information—such as relationships with stakeholders, ongoing projects, and organizational history—is documented before the CEO’s departure. This documentation can significantly ease the transition for the incoming leader.
• Reflect on Legacy and Future Needs: Lastly, I remind retiring CEOs to consider both their legacy and the evolving needs of the organization. Succession planning isn’t just about filling a role; it’s about identifying the leadership qualities needed to guide the association into its next chapter. This is why I stress the importance of reflecting on the association’s future challenges and opportunities when selecting a new leader.

In conclusion, the transition from one CEO to another can be daunting, but with proper planning and guidance, it can be an opportunity for growth and renewal. At SMG Consulting, we specialize in helping ease these situations by placing interim Executive Directors to ensure a smooth and effective transition.

These short-term leaders provide the stability and objectivity needed to keep your association on track during the search for a permanent CEO. By addressing these key areas, retiring CEOs can help ensure their legacy lives on, while preparing the organization for future success.

For more information or to explore a leadership transition plan, please contact SMG Consulting, LLC.