Every CEO, especially those who have built a small or midsize business from the ground up, eventually begins to consider succession. After years of dedication, these leaders want someone who can not only take over but also build upon the company’s achievements. When the decision is made to look within the organization for a successor, CEOs prioritize specific qualities that will sustain and grow the legacy they’ve created. Here are the top traits CEOs typically look for in their successor:
1. Financial Stability
Both personal and professional financial stability are essential traits. A successor should demonstrate financial prudence and sound decision-making, reflecting an ability to lead responsibly. Financial stability signals that they can make thoughtful decisions in high-stakes situations without taking unnecessary risks.
2. Operational Awareness
CEOs seek a successor with a deep understanding of the organization’s operations. This means being able to oversee and manage multiple projects and departments simultaneously. A strong operational sense helps future leaders keep the business running smoothly, even in the face of complex challenges, while identifying efficiencies and opportunities for growth.
3. Adaptability and Resilience
Successors must be agile, and ready to pivot when strategies are not yielding results. CEOs know that the business environment is constantly evolving, so they value leaders who can adapt and pivot quickly. This flexibility shows an understanding that the best path isn’t always linear and the ability to act swiftly in pursuit of success.
4. Customer-Centric Focus
A customer-first mindset is a non-negotiable trait for a future CEO. Leaders who understand that everything operationally should align with the customer’s needs can drive sustained growth and loyalty. When a successor prioritizes customers, the rest of the business tends to follow suit, ensuring that a customer-centric culture continues.
5. Strong Ethics and Integrity
Integrity remains one of the most critical attributes in leadership. CEOs look for successors who will do the right thing, even when no one is watching. Ethical leadership fosters trust within the organization and externally with clients, partners, and the wider community, which is essential for long-term success.
6. Relationship-Building Skills
Future leaders must be adept at maintaining relationships rather than burning bridges. Succession isn’t just about taking on a title; it’s about preserving the network of relationships that support the business. Leaders who can manage conflicts and nurture partnerships are invaluable assets to a company.
7. Execution and Consistency
Lastly, CEOs value a successor with a “get it done” attitude. Execution is vital for making the transition successful and moving the business forward. A successor who demonstrates resilience and consistency and who follows through on plans with a high degree of accountability is well-equipped to sustain and expand the business.
Selecting a successor is no small feat for CEOs of small to midsize businesses, as the role requires a blend of financial acumen, operational skills, and ethical fortitude. By identifying and developing these traits within future leaders, CEOs can confidently pass the baton, knowing their legacy will be carried forward with excellence.