How to survive a new CEO. (In the Trenches).

We're always amazed at the lack of personal transition planning both by managers and the troops when a new CEO appears. Common wisdom seems to be that nothing much will change. As a weary vice president of a troubled bank said, "We've already been through hell--twice. How much worse could it get?" The answer, of course, is 'For you, much worse. You could be fired!"

A new CEO means everyone in the organization, with the possible exception of the executive secretaries, is now a new hire--an unknown entity that must prove he or she can and will enthusiastically, tirelessly support the CEO's agenda. Few wannabe survivors realize this quickly enough. They believe they can think things out before they plunge in.

The organization's board of trustees has charged the CEO with making visible changes--pronto. This is mandatory. or the CEO will be dangling from his golden parachute in short order. Those who want to stay on the payroll must avoid a business-as-usual attitude and demonstrate that they share his dedication to change.

Many new CEOs believe the troops are eager to justify past performance rather than move forward. That view precipitates departures. Have you noticed how often the chief financial officer is an early hit? He or she may have had nothing to do with the organization's troubles--other than documenting the financial side--but the CFO is often replaced immediately. Ditto for the head of HR. Could it be that both usually appear entrenched in the past, burdened by loyalties to the previous CEO? Are they waiting for the new CEO to issue marching orders rather than exhibiting willingness to support the CEO's plans?

If you're in a staff job, it's important to show you're essential to the new regime. quickly and convincingly. One CFO in outplacement said, "I just wanted to do my job and keep a low profile until the CEO got things set up the way he wanted. By the time he did it, I was too late. In my exit interview the CEO told me, 'You didn't define your position. I need someone with initiative."'

Few CEOs arrive committed to dumping anyone (especially with the current labor shortages), but the inertia and self-justification of managers and workers often provokes a slash-and-burn scenario. A whole new team arrives shortly after the CEO. They may not be better than those he inherited, but he believes he can count on them to work with him.

Rather than watch yourself turned into cannon fodder for corporate tragedies you had little to do with, act decisively--but only if you want to stay. Otherwise, a discussion about severance and outplacement assistance makes sense. If you initiate it, you may get more severance because you evoke no guilt.

Do your homework

It's astounding how few people run a background check on the new chief, although it's simple to do. Public relations departments of virtually all organizations have press handouts on the senior management team. The CEO's former employer undoubtedly had a PR department that would give anyone who asked a copy of his biography. An online or library search of the trade press could produce more data--the good and the bad news.

All those association meetings and networking lunches can pay off big now. Unless the new CEO has sprung full-grown from the brow of Zeus, he's known in circles you can access. What has his MO been in the past? How did he get to his current position? Someone who knows will tell you if you ask. What's the CEO's agenda? What was the board's mandate? It's not difficult to find clues even before he takes over. The executive secretaries knew a lot about the front-runners before the announcement. Rarely does anyone ask what they think, so they'll be delighted to spill all the beans.

Anticipate the CEO'S needs

Provide the CEO with information and background as objectively as possible. Stick to the facts. If you're the medical director and patient satisfaction has nose-dived, say so. Any attempt to spin results will hasten your departure. New CEOs, hungry for information, go ballistic when it's not supplied Immediately. One said to us, "Why should I have to ask? What do these people think I'm interested in, their golf handicaps?"

The clock starts on the day the CEO's appointment is announced. Be prepared to act quickly. There should be a rush to fill In the blanks for the CEO, but usually there's a momentary calm as people wait to gauge which way the wind blows. This creates both a power and information vacuum that will be filled in by whatever information sources the CEO can muster. If he is an outsider, he may rely on industry gossip and former employees who aren't impartial, not even factual. Don't risk it. Prepare your case in writing.

One deposed vice president complained to his outplacement counselor, "I never had a chance to talk with the CEO until he'd already decided I wasn't going to fit in. I was hard done by."

Maybe, but why didn't that vice president approach the new CEO on the day of the announcement or the day after with a job description, summary of work in progress, and future plans? Managers should always present an agenda while the situation is fluid rather than after the CEO's ideas have firmed up. Show your hand immediately. Give a brief account of your accomplishments and missteps. Add what you'd do differently.

One of our clients, a vice president for medical affairs at a regional hospital, decided he wasn't going to wait and see how his future would turn out. He called his counterpart at the new CEO's former hospital and asked for advice. That contact had nothing to lose by describing the CEO's MO and giving advice. Before the CEO even moved into his new office, our client sent him updates. Two years later he is still employed there. Two thousand others are not, including most of the management team.

Be supportive and nonpolitical

Don't prime the grapevine with casual comments. The number of managers and workers doomed because they said--to no one in particular--that they were waiting to see "how good this guy is," has kept outplacement firms in business and profitable. The worst thing any employee--especially a manager--can do is appear to be playing politics during a transition. Not only will the CEO hear about it, your peers will sharpen their knives.

Consider the CEO's view of office politics: The board that hired him couldn't brief him. They don't know enough. The departing CEO probably won't volunteer information, or may have reasons for withholding it. The new kid on the block can trust nobody so he's hypersensitive to every nuance in the grapevine and hungry for details. Don't voice any question about his ability; that will sound like potential opposition. For those who wish to survive, silence Is golden and that means keeping direct reports quiet, too.

Be realistic with your direct reports

A new CEO means all bets are off. Promises made in the past are null and void. Do not try to calm subordinates' anxieties with new commitments. We cant think of a promise that you could be sure you could keep while the CEO is assessing his options. If you promise something you can't deliver, your direct reports will remember and blame you, not the change In leadership.

Don't let your troops be misled by statements the CEO makes about everyone continuing in place. He's trying to stabilize the situation until he's decided what to do. If someone asks you about the CEO's intentions say, "I don't know." Learning to handle a transition is an essential lesson. If one of your subordinates feels seriously threatened by the prospect of new management, he or she is better off somewhere else.

Appear poised to leave willingly and quietly--and you may not have to

Someone who appears to have options elsewhere is more desirable than someone who is willing to be a human sacrifice. Martyrdom is unattractive and makes people uncomfortable. Besides, It will not solve the organization's problems. Ditto for doom and gloom.

Conclusion

The outgoing CEO may have given his successor profiles of key players, but if he's smart, the new CEO has done his own research on the senior managers. (If you were new, wouldn't you want to check with objective sources?) Even so, the new CEO has no way of gauging how quickly key people can move In a new direction. During a transition, this makes your attitude more important than past performance.

Marilyn Moats Kennedy is Managing Partner, Career Strategies, Inc. Wilmette, Illinois, and a long-dine member of the ACPE faculty. She can be reached at 1150 Wilmette Avenue, Wilmette, Illinois 60091, 847/251-1661, via fax at 847/251-5191, and via email at [e-mail].