I spend a good chunk of my days asking other leaders how they were able to accomplish the things they accomplished. Recently, my friend and confidant Aaron Ward, the Co-founder & CEO of AskNicely, told me he was replacing himself as CEO. A few weeks later he announced a leadership transition that named Kirsten Newbold-Knipp as the new CEO, heralding a period of fresh perspectives and growth.

I called him up offering my congratulations, and In his usual fashion, Ward brough his self deprecating humor to the conversation along with nuggets of wisdom. “My overarching observation of the past 8 years is that every year we need a new CEO, because the clown that was here last year doing what he did is not good enough to do what the market demands.”

I laughed of course. Then he told me he was serious. While he didn’t mean this literally, the concept of having a "new CEO" every year emphasizes the importance of adaptability and the need to pave the way for leaders better equipped to tackle the unique challenges that arise annually. And doesn’t it seem like this is even more important in the years since 2020?

Feedback as a Super-Power

The market is in a constant state of flux, influenced by a myriad of factors such as technological advancements, economic shifts, and evolving consumer preferences. Each passing year brings new opportunities and challenges that require astute decision-making and a deep understanding of the market landscape. By promoting a mindset that embraces change, companies can remain agile and responsive, enabling them to capitalize on emerging trends and seize competitive advantages.

“I've had a conversation every year with my co-founder, and we would go to a local beach in New Zealand and sit there for 4 hours at the start of Januarywhen it’s summer time in that part of the world. And we would have a conversation with each other and ask ‘This year is going to be different. Are you up for this?’ And then we would say, ‘Okay, I am up for this! But I need you to give me some feedback and tell me where I need to upgrade.’ So feedback is fundamental to our success; it's our super-power,” said Ward.

According to Ward, this is how a company receives a new CEO each and every year. “It’s true that our CEO has had the same name all these years, but I’m definitely an upgraded version from the previous year, because I've I've had to really work hard on myself to grow into the demands of the role,” said Ward. But a better way of looking at it is to ask ‘What's required of the CEO this coming year?’. Not ‘What's required of me?’ It's a different question, and honestly it’s much easier to answer.”

Leveraging Ego…

In this world of technology where innovation is key to staying ahead, companies have to be willing to embark on new initiatives and explore uncharted territories. These initiatives can range from diversifying product lines, entering new markets, adopting new technologies, or embracing sustainability practices. The ability to identify and seize these opportunities necessitates leaders who are willing to challenge the status quo, take calculated risks, and embrace a culture of experimentation. An annual reevaluation of leadership can provide an opportunity to assess whether the current CEO's skill set aligns with the company's strategic direction.

Ward says this means removing your own ego. “Any founder is going to suffer from at least some issues of of ego. And that’s actually a good thing because if you bring something into the world and want it to be successful it needs to install a new point of view, a new way of doing things, or a new set of beliefs. And you aren’t really innovating unless the majority of folks disagree with you initially,” said Ward. You need a level of resilience, conviction and ego to be able to stand up to that level of criticism and rebuke and say, ‘I don't care if you disagree with it, I'm going to make this true.”

…But Not investing in it

Adaptability is a hallmark of successful leadership. As market conditions change, CEOs must continually adapt their strategies, business models, and leadership styles to meet new demands. By acknowledging that no single individual possesses an indefinite set of skills that can navigate all challenges, companies can foster a culture of continuous learning and development. By stepping away after a certain tenure, a CEO paves the path for new leaders who bring diverse perspectives, experiences, and fresh ideas to address emerging challenges and opportunities.

“AskNicely started with 4 values. One of them was simple. One of them was responsive. One of them was personal. The fourth one was curious. We’ve always said that the definition of curious is recognizing that we don't have all the answers here- and that includes me in my role. I'm going to have lots of opinions. Some of them are going to be strongly held. And some of them might be right. The problem is that I don't know which ones they are.”

We don't have all the answers but we're all in this together. Embracing this mindset also prevents us from investing too much ego into our opinions. There is a meaningful Whakatauki (Māori proverb) that really resonates with me: "Ehara taku toa i te toa takitahi, engari he toa takitini" - Translating to: 'My strength is not that of a single warrior but that of many.”

Succession Planning

Ward says he and his co-founder John Ballinger knew years ago that if they were successful at this, the business would inevitability outgrow them. “So, to be at this moment, we must have done at least some things right,” exlaimed Ward.

Ward believes that being open to the idea of succession is the key to eventually investing in succession planning & leadership development. A strategic approach to succession planning ensures a smooth transition of power and minimizes disruption in the company's operations. Whether a company promotes from within or hires an outsider, systematically nurturing a pool of talented individuals and exposing them to different facets of the organization, companies can ensure a steady supply of potential future leaders who are well-prepared to face evolving challenges.

In addition to succession planning, it is crucial to build a supporting cast of leaders who can effectively execute on a CEO’s vision. These leaders play a vital role in translating and implementing the organization's strategy, ensuring that it is executed with precision and delivering the intended results. Having a team of competent and capable leaders not only strengthens the organization's ability to achieve its goals but also fosters a culture of collaboration and collective success. By empowering and entrusting these leaders, the visionary can focus on driving the long-term vision and strategic direction while relying on their capable team to bring it to fruition.

Conclusion

While the idea of a "new CEO" every year may not be practical, the underlying philosophy highlights the need for a balance between stability and change. A long-serving CEO can provide stability, institutional knowledge, and a strong vision for the organization. However, periodic changes in leadership- both in terms of upgrading yourself or hiring new leaders- injects fresh perspectives, infuse new energy, and challenge conventional thinking, fostering innovation and growth. This is why Wad recommends adaptability, strategic thinking, and the willingness to embrace change in the modern business world. By recognizing the evolving nature of the market and the need for different leadership skills, companies can proactively address emerging challenges and capitalize on new opportunities. Embracing a culture that values succession planning and leadership development ensures a steady influx of talented individuals prepared to steer the company toward sustained success in an ever-changing landscape.