In almost thirty five years of working on boards, the hardest decisions I have had to make involve removing the CEO. It is an important decision and one that must be made from time to time. I am not a fan of removing the CEO until and unless it is abundantly clear that it must be done.
But when the CEO has failed to manage numerous important challenges, when the senior leadership team has been a revolving door, when the CEO has messed up important relationships with customers, employees, and other important stakeholders, when the organization has become toxic as a result of the CEO’s abrasive personality, then the choice is abundantly clear and must be made.
It is an even harder decision to make when you don’t have an obvious replacement, or when you are not 100% confident that the obvious replacement will be an improvement over the current CEO.
But those are not reasons to wait. You must act and replace the failed CEO with whomever is the best option in that moment and work with the new CEO to address the challenges facing the company, many a result of the failed CEO’s poor leadership.
Waiting is never the right answer. Failing to act is never the right answer. You must remove a failing CEO.