As a CEO, one of the hardest decisions you’ll face is knowing when it’s time to make a change to your executive team. Just because an executive has been a key contributor in the past doesn’t mean they’re still the right fit for your business’s future. Here are five warning signs to watch for that could indicate it’s time for a change.
[1] They Hire for Yesterday, Not Tomorrow
Great executives hire people who challenge them and bring new skills to the table. But when an executive stops evolving, they start hiring for past needs, not future growth. They might shy away from hiring more experienced talent, fearing they’ll be outshined. This reluctance to bring in fresh perspectives can stunt the company’s progress.
[2] They’re Getting Caught Flat-Footed
Early in a company’s growth, executives are often ahead of the curve, anticipating challenges before they arise. But as the business scales, complexity increases. If an executive begins reacting to issues rather than proactively addressing them, it’s a sign that their playbook is no longer effective for the company’s current stage.
[3] Their Team Doesn’t Know Where They’re Going
A strong executive ensures their team understands the company’s strategy and how it ties into their work. As a company grows, this becomes more challenging. If employees are unclear on the company’s direction or their role in it, it may indicate the executive isn’t effectively communicating or aligning the team with the broader vision.
[4] They Struggle to Translate Strategy into Execution
In the early stages, translating strategy into action is relatively simple. But as a company scales, the gap between strategy and execution widens. If an executive struggles to break down long-term goals into actionable steps with clear ownership and milestones, teams lose focus, and progress slows.
[5] They’re Stuck in Nonstop Operational Meetings
Successful executives move beyond day-to-day operations to focus on leadership setting direction, aligning teams, and ensuring execution. If they’re constantly mired in operational issues, micromanaging, or troubleshooting, it signals that they’ve lost the ability to lead at a higher level, and the business is running them rather than the other way around.
What to Do When You See These Signs
Spotting these signs doesn’t automatically mean an executive has to go, but it does warrant a closer look. It’s possible that the issues stem from broader organizational problems, and feedback or coaching may help. However, if the patterns persist despite support, waiting too long to make a change can cause more harm than good.
Making an executive change is never easy or cheap but failing to act early can have far greater consequences. Recognizing when it’s time for a change before the issues become too entrenched can be crucial to keeping your company on track for continued growth.
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