The Politics That Mess Up CEO Transitions: What to Watch For and What to Avoid
By Natalie Michael
Managing Partner, CEO Next Chapter
Introduction
CEO transitions are some of the most pivotal moments in a company’s lifecycle. They’re also some of the most politically charged. As a coach who’s supported both sitting CEOs and their successors through these delicate handoffs, I’ve seen how easily a well-intentioned succession plan can be quietly sabotaged by internal dynamics, unspoken agendas, or legacy tension.
It’s easy to think of succession as a strategic process—and yes, it is. But it’s also a deeply human process. And where humans go, politics tend to follow.
In this article, I want to take you behind the scenes of what actually derails CEO transitions—not what’s written in the plan, but what happens in whispered conversations, hallway hesitations, and emotional undercurrents. More importantly, I’ll walk you through what to watch for, what to avoid, and how to set the stage for a smooth, successful transition—one that protects not just the role, but the people and the legacy behind it.
Why Politics Surface During Transition
Let’s begin with the obvious truth: transitions create power vacuums. When a CEO prepares to exit, a ripple of uncertainty moves through the organization. Who will lead next? Will the successor protect the culture? What will happen to the inner circle’s influence?
For stakeholders—board members, senior leaders, and even external partners—this period opens the door to real or perceived threats. And that’s when politics enter the room.
Politics, in this context, don’t necessarily refer to malicious scheming. They can look like self-preservation, loyalty struggles, status anxiety, or the subtle reshuffling of alliances. And while these forces are natural, they’re also dangerous if unacknowledged.
Political Landmines to Watch Out For
1. Backchanneling and Whisper Campaigns
One of the most damaging behaviors during a transition is backchanneling. This often takes the form of quiet undermining—stakeholders questioning the successor’s readiness or floating alternative candidates through informal conversations.
These behind-the-scenes narratives erode confidence in the transition, especially if they reach board members or investors before the official narrative is fully aligned. If backchanneling goes unchecked, it can fracture trust and destabilize the successor’s ability to lead from day one.
What to watch for:
- Side conversations that contradict the official succession plan
- Conflicting signals from the board or executive team
- Stakeholders lobbying for “one last reconsideration”
2. The Overinvolved Outgoing CEO
It’s incredibly difficult for some CEOs to step aside. After all, their identity is often wrapped in the company’s success. But when a departing CEO stays too entangled—offering unsolicited advice, second-guessing decisions, or holding closed-door meetings with loyalists—they can unintentionally create a shadow chain of command.
This confuses the organization and undermines the new CEO’s authority, even if intentions are good.
What to avoid:
- “Ghost leading” after departure
- Making public statements that contradict or override the new CEO’s direction
- Holding on to symbolic power roles without a clear boundary
3. Divided Boardroom Loyalties
Boards are meant to be neutral stewards of organizational health, but board politics can get tricky during succession. You may have board members with close ties to the outgoing CEO or private biases toward one candidate over another.
If the board isn’t unified, the successor may walk into an environment that feels more like a tribunal than a support system.
What to watch for:
- Board factions forming behind-the-scenes
- Inconsistent messaging to stakeholders
- Resistance to change driven by legacy loyalties
4. Cultural Undercurrents
Culture doesn’t always follow title changes. Some transitions fail because the incoming CEO represents a different leadership style—and middle management quietly rejects it. Whether it’s a shift from visionary to operator, or from founder-led to team-based, cultural friction can stall progress and breed passive resistance.
What to avoid:
- Assuming the team will automatically “fall in line”
- Ignoring the emotional needs of long-tenured staff
- Failing to align new leadership style with existing values or redefine those values openly
How to Navigate and Neutralize Transition Politics
It’s not enough to recognize these dynamics—you need to intentionally lead through them. Here’s how.
1. Create a Shared Transition Narrative Early
The best way to prevent conflicting stories is to co-author the story together. That means the outgoing and incoming CEOs, alongside the board, must present a unified, values-driven transition plan. This isn’t just a strategic document—it’s a cultural contract.
When people hear the same message, in the same language, from multiple leaders, they stop speculating and start aligning.
Tip: Host internal sessions where both CEOs discuss the vision for the future, address concerns transparently, and give people space to process the change.
2. Set Clear Boundaries for the Outgoing CEO
Legacy matters. But so does clarity. I’ve seen some of the most successful transitions come from outgoing CEOs who embraced their next chapter with grace and let go of control with intention. This doesn’t mean disappearing—it means stepping back with dignity.
Healthy roles include:
- Serving as an ambassador during the transition window
- Mentoring the new CEO, only if requested
- Engaging in select board-level or thought leadership functions without interfering in operations
3. Equip the Successor for Influence, Not Just Strategy
Too often, we focus on whether the successor can handle the job technically. But transitions are about more than competence—they’re about influence. Your successor needs to read the room, build political capital, and earn trust quickly.
Coaching priorities should include:
- Stakeholder mapping: Who has influence, and what do they need to feel secure?
- Communication strategy: What’s the story being told, and how is it landing?
- Inner circle alignment: Who is in the successor’s corner, and who needs to be?
4. Align the Board with One Voice
If a board isn’t aligned during a transition, the entire organization suffers. It’s essential that board members put aside personal preferences and speak as one, even if their individual perspectives differ.
This doesn’t mean silencing disagreement—it means resolving it behind closed doors and emerging with unified public support.
Helpful practices include:
- Pre-transition retreats for board alignment
- Agreement on metrics for transition success
- A communications plan for board engagement post-transition
Final Thought: Transitions Reveal Culture
If you want to understand a company’s true culture, observe a leadership transition. The values, fears, and unspoken rules surface quickly. And if you’re not paying attention to the politics, you’re only managing half the transition.
But it doesn’t have to be this way. With awareness, courage, and structure, you can lead through politics without being consumed by them. You can honor legacy while empowering the future. And most importantly, you can orchestrate a transition that leaves the company better, stronger, and more united than ever.
Transitions aren’t just about succession—they’re about stewardship. And that starts with leading the unseen just as intentionally as the seen.
About Natalie Michael
Natalie Michael is a trusted advisor to CEOs navigating what’s next—whether preparing for their own exit, developing key talent, or designing a purposeful next chapter. As Managing Partner of CEO Next Chapter, she combines over 20 years of experience in executive development with a unique focus on succession strategy, peer learning & leadership reinvention.
A Master Certified CEO Peer Group Leader with Mackay CEO Forums and Chair of Tiger 21 Vancouver 3, Natalie works closely with business leaders stewarding enterprises ranging from $10M to $6B. She holds a Master’s in Organizational Leadership, numerous coaching certifications, and has authored two books on CEO development. Natalie also serves on the boards of Foundations for Social Change and Wavefront Centre for Accessibility.
