It's Not About You: Losing Your Job When a New CEO Arrives

Staff Org Changes April 16, 2018 By: Scott Belcher

Despite your reputation as a stellar performer, when your association names a new CEO, you might not be around to help them settle in. If the incoming head opts to let you go, try not to take it personally—a host of factors out of your control could be the cause.

It has happened to many senior association executives: A new CEO is hired, and some staff members, especially at the executive level, are out the door. Sometimes the dismissal is immediate, complete with an escort to the exit; other times, it can take months. When it happens to you, it is hard not to take the job loss personally. In many cases, though, it really isn’t about you.

Why would a new CEO get rid of the very people who can most help them succeed in their new role? Numerous factors can spur a CEO to take this seemingly irrational action that may have nothing to do with the executives who are asked to leave.

A mandate for change. Rarely is an incoming CEO told by a head hunter or the board that it’s fine to stick with the status quo. Even the most well-run organization can be improved. Remember, the new CEO has been through a grueling search process where they rose above a lineup of equally qualified candidates. They didn’t make it through this gauntlet by saying that they intended simply to hold down the fort. They are bringing something new and exciting to the organization. Sometimes the easiest way to show change is to change up personnel, and doing so is always easier before the CEO has established strong personal relationships.

A search for cost savings. New CEOs are often hired to address financial challenges or to make the organization more efficient. Replacing a senior executive who has been in place for many years and is highly compensated in favor of a new candidate can be an easy way to obtain some immediate savings.

A need for “their own people.” Many CEOs come from a high-level position at another organization. They have built a network of relationships over the years with people they trust and with whom they work well when taking on a new challenge. In many cases, members of the team at the CEO’s new organization feel wary and suspicious of their incoming boss, and it’s important to the new CEO to have a few trusted colleagues on board.

Sometimes the easiest way to show change is to change up personnel, and doing so is always easier before the CEO has established strong personal relationships.

A desire for diversity. Smart CEOs have learned that diverse executive teams can be far more valuable than homogeneous ones. Diverse teams bring different insights, approaches, and values to the table. There has been a lot in the press recently about boards and executive teams that are not representative of the society they live and work in, with a corresponding call for them to address this shortcoming. Doing so is becoming an important focus for a lot of nonprofit boards.

It Might Be You, But…

When a new CEO asks you to leave, sometimes it is about you, but it still may not be personal.

You might be too close to the board. There is nothing worse than coming in as a new CEO and finding out that members of your staff have back channels to the board. This problem is usually compounded by the fact that experienced and reliable board members know (with some exceptions) that they should not be dealing directly with staff. Board members who do maintain these relationships can be challenging in their own right. A smart CEO will nip this in the bud, even if it means getting rid of a perfectly competent executive.

You might be too close to the previous CEO and the old way of doing things. Having a constant reminder of the predecessor and their strategies can be tough. Again, an incoming CEO usually has a mandate for change. Hearing—or anticipating that they will hear—over and over that “we tried that and it didn’t work” can be discouraging. A new CEO, rightly or wrongly, thinks they are bringing a different energy and focus to the organization. They know what worked for them before and want to test out new ideas in the new organization.

You might be the wrong fit. CEOs have usually risen to their level because of talent, hard work, instinct, and a little luck. They have learned that if they sense a person is not a good fit, they need to move that person out quickly. The longer they drag it out, the harder it is for everybody involved. Often, it has nothing to do with the departing executive’s skills and abilities—it is just a matter of fit.

Having been on both sides of this equation, my experience is that when a senior executive is quickly moved out by a new CEO, it rarely has to do with the senior executive’s competence.  This doesn’t make it easier, but if it happens to you, rest assured: You are in good company.


Scott Belcher

Scott Belcher is president and CEO of SFB Consulting, LLC, in Washington, DC.