E301 | The Importance of Founder CEO Succession with Evgeny Shadchnev

Mind Your F**king Business

300 episodes on Dominic's catching up with guest #1 Evgeny Shadchnev, Executive Coach and Founder & ex-CEO of Makers Academy, to talk about that all-important decision: Do you stay on as founder CEO, or do you go and what happens next?

Evgeny's new book "Startup CEO Succession: a Founder's Guide to Leadership Transition" is out now

Summary

The conversation explores the topic of startup CEO succession and the importance of founders considering stepping down from their roles. The premise of Evgeny's new book is that founder-CEO succession is often the best thing for both the founder and the company. The conversation covers various aspects of CEO succession, including the need for founders to assess their fit for the role as the company grows, the different options for transitioning from CEO to another role in the company, and the challenges and benefits of employees setting their own salaries. The conversation also highlights the importance of having a clear understanding of the CEO's role and the need for open and early conversations about succession. The conversation explores the motivations and challenges of CEO succession in startups. It delves into the personal satisfaction derived from helping others and the shift in motivation when transitioning from a B2C to a B2B business model. The importance of open and early conversations about succession planning is emphasised, as well as the role of the board and the time required for a smooth transition. The conversation also touches on the impact of the COVID-19 pandemic on business operations and the need for adaptability.

Keywords

startup, CEO succession, founder, leadership transitions, stepping down, role fit, options, employee salaries, CEO role, open conversation, CEO succession, motivations, challenges, B2C to B2B, open conversations, board, transition, COVID-19

Takeaways

• Founder CEO succession is often the best thing for both the founder and the company.
• Founders should assess their fit for the CEO role as the company grows and consider transitioning to another role if necessary.
• There are various options for transitioning from CEO to another role in the company, such as becoming an executive chair or advisor.
• Employees setting their own salaries can lead to challenges in ensuring equality and can create administrative overhead.
• Having a clear understanding of the CEO's role is important for both founders and investors.
• Open and early conversations about CEO succession are crucial for a smooth transition. CEO succession in startups requires open and early conversations about the future of the business.
• Motivations for being a founder and CEO can evolve over time, from personal validation to making a meaningful impact on people's lives.
• Transitioning from a B2C to a B2B business model requires a different skill set and motivation.
• Succession planning should involve the founder taking charge of the process and driving it, rather than waiting for the board to initiate the conversation.
• CEO succession in startups takes time and should be approached with careful consideration and planning.

Sound Bites

• "Founder-CEO succession makes sense more often than it's actually happening."
• "Behaviors that are genuinely helpful at the early stage get in the way after 50."
• "The admin overhead of employees setting their own salaries was not worth the benefits."
• "I wanted to create something that I could point my finger to and say, I've done it."
• "Our customers regularly describe their experiences as life-changing."
• "That's one of the reasons why I work as a coach. It's essentially about meaningful, deep one-to-one conversations."

Chapters

(02:55) Assessing Fit for the CEO Role as the Company Grows

(08:00) Challenges and Benefits of Employees Setting Their Own Salaries

(13:06) Understanding the CEO's Role

(15:50) The Need for Open and Early Conversations about CEO Succession

(28:13) From B2C to B2B: Shifting Skill Sets and Motivations

(29:49) The Importance of Open and Early Conversations about Succession Planning

(31:44) The Role of the Board in CEO Succession

(35:46) The Time and Care Required for a Smooth CEO Transition

(39:18) Navigating CEO Succession During the COVID-19 Pandemic

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