3 Rules for CEO Succession

CEO succession is in the air.

British Petroleum, Qatar Airways, Costco, PayPal, and TGI Fridays are all currently undergoing high-profile CEO transitions.

As we discussed in last week’s Crash Report, a bad CEO succession process can spell doom for a company, even when things are going well. In this week’s report, I have more to say about the current succession happening at Morgan Stanley. But generally, what core principles should a new CEO keep in mind when taking the reins of a large enterprise?

My top three:

1. You’re instantly responsible for everything.

Starting 8:00 a.m. on your first day as CEO, you own everything—all the company’s processes, problems, decisions, and outcomes. That includes the ones you’re just finding out about and didn’t have anything to do with. Welcome to the dilemma at the core of the CEO job: responsibility without total control. It’s going to take a long time to master the balance. To start, avoid any hint of passing the buck or assigning blame.

2. Never speak…