For most business leaders, their current role is not where they intend to stay until they die. At the right time, they all intend to make a graceful exit, and leave while still perceived to be on top of their game. The challenge is how to know and exit gracefully when the right time has come, without trauma to either the company or themselves.
I haven't seen much insight on this subject, so I was intrigued by a new book, Leaving on Top: Graceful Exits for Leaders by David Heenan, a business executive and Georgetown professor, with some good research on 20 top leaders, and why some leaders 'get out while they're on top' while others 'overstay their welcome.'
First of all, both Heenan and I agree that most exiting business leaders can be categorized into one of four major groups:
- Timeless wonders. With their skills very much intact, these white-haired prodigies have no need to call it quits. Warren Buffett and Rupert Murdoch clearly fall into this category.
- Aging despots. Reluctant to leave the spotlight, they are past their prime and should turn the reins over to a new generation. We won't mention any names here, but we all know a couple of these.
- Comeback kids. Whether to return their enterprises to their former glory, or simply save themselves from boredom, these departed leaders have returned with a vengeance. Steve Jobs and Howard Schultz are a couple that come to mind.
- Graceful "exiters." Quitting while ahead, these leave a sterling reputation as they move on. Bill Gates and Oprah Winfrey are business examples in this category.
After many stories of leaders in all these categories, he offers some good tips on how to get counted in the category you prefer:
Leaving on top, and exiting gracefully, begins with recognizing that a job, like a life stage or a relationship, has peaked. After that, I'm reminded of the old quote by John Richardson "When it comes to the future, there are three kinds of people: those who let it happen, those who make it happen, and those who wonder what happened." Which category will you fall into?