Hospital CEOs make a dozen decisions every day. They face an enormous amount of pressure knowing these decisions affect patients and families, along with hospital employees and staff, and are used to leaving their personal interests out of the equation and out of their decision process. Interestingly though, CEOs can have a hard time making one important call: when should they retire or resign?
It's rare that a CEO wants to come back to work at the hospital after retiring or resigning, yet this occurrence has made a few recent headlines. Bonnie Hagemann, CEO of Executive Development Associates, a leadership development firm in Oklahoma City, says the emotional aspect of retiring or resigning from a hospital C-suite shouldn't be underestimated. Here, Ms. Hagemann shares some of the steps leaders can take to ensure they are 100 percent ready to leave their CEO title behind.
1. Many CEOs might want to return to work after they retire or resign, but only a small percentage actually pursue it. News stories about CEOs coming back after they resigned or retired are rather rare, probably because it's an atypical event. Still, just because the majority of CEOs don't formally reverse their decision doesn't mean they leave without regret, doubt or confusion.
"While it is without question a very difficult job, being CEO comes with a lot of prestige, perks, power and money. CEOs get to make important decisions, work with talented senior teams and typically have the support mechanisms to do their job readily at hand. The work is interesting and challenging. It’s as addicting as being on drugs," says Ms. Hagemann.
For retired CEOs, the initial few weeks of relaxation can be pleasant, but they might not know what to do when they want vacation to be over and to return to work.
"They may look up from their morning coffee and wonder what they are supposed to do with the spouse they hardly know after so many years of long hours and constant work-related events," says Ms. Hagemann. "The spouse may be thinking the same thing. They probably have money but may not feel important anymore, no longer needed — lost."
To avoid this dilemma, Ms. Hagemann suggests CEOs meet with a leadership coach and thought partner to mentally prepare for this shift. These coaches can also help the CEO make sure he/she is 100 percent ready to retire or resign, and this decision won't be regretted in two weeks or two years down the line. Finally, leadership coaches can help the CEO learn to let go — a task that may be difficult after years of being held responsible for an organization.
2. Reversing resignation or retirement decisions disrupts the workplace. When a CEO decides to retire, this should trigger a series of planned steps, such as announcements within the organization and to the community; meetings with key stakeholders; and the enactment of the hospital's succession plan — whether it be an internal or external search for the replacement CEO.
"Reversing the train after it left the station creates confusion and simply postpones the inevitable," says Ms. Hagemann. It not only disrupt succession procedures for hospital administration, but a change in mind also leaves employees confused and disturbs their adjustment to change.
"[Employees] grieve the loss, if [the CEO] was a good leader, and begin to look to the future for a new leader. They anticipate change and hope for some good changes, maybe some that the past CEO would never have made," says Ms. Hagemann. The CEO coming back with a change-of-mind throws this process out of whack.
3. CEOs can still contribute to the hospital after they leave. A CEO doesn't necessarily have to cut ties with the hospital when they retire — they just have to sever their connection to the CEO suite, according to Ms. Hagemann.
"There are many ways the CEO can continue to contribute after the new leader has had time to firmly establish his/her leadership seat. The retired CEO could help raise funds, lobby for governmental changes that help the hospital, mentor senior leaders and physician leaders and much more," she says.
Boards may recommend new, external roles that build upon the strengths that CEO already demonstrated during his/her tenure. Still, CEOs need to have some time away from their direct connection to running the hospital. This temporary separation lets the CEO come back and fulfill external roles with a renewed perspective that he/she is no longer in charge.
4. Board members need to talk to the CEO and find out why he or she really wants to come back. When a CEO returns to the board with a "change of heart" or conflicted feelings, there is a great opportunity for boards to reach out and help the former CEO through this time of uncertainty. It may seem as though the board is the barrier to the CEO's return, when really, they can be a source of great mediation and advice for the leader.
"The board members need to have an honest and open discussion with the retired CEO to zero in on exactly what is bringing about the change. Most boards are filled with smart leaders who may have themselves been through such a transition. They can, in turn, mentor the CEO on making a successful transition out of the role without reversing plans already well into execution," says Ms. Hagemann.
5. A reversed resignation can be a ding in a stellar CEO career. It probably won't cause a CEO's career to crash and burn, but a change-in-mind over his/her retirement or resignation can certainly blemish a career. It says something about the individual's decisiveness and leadership, and may cause people to think twice before trusting them with hefty decisions.
"While flip-flopping on a major decision doesn’t look good on anyone's career, it will most likely not prevent the retiring CEO from having a successful legacy or future work if desired," says Ms. Hagemann.
In Transition: How to Find the Right Interim Hospital CEO
Leading Change With Vigor: 6 Questions and Answers for Hospital CEOs
It's rare that a CEO wants to come back to work at the hospital after retiring or resigning, yet this occurrence has made a few recent headlines. Bonnie Hagemann, CEO of Executive Development Associates, a leadership development firm in Oklahoma City, says the emotional aspect of retiring or resigning from a hospital C-suite shouldn't be underestimated. Here, Ms. Hagemann shares some of the steps leaders can take to ensure they are 100 percent ready to leave their CEO title behind.
1. Many CEOs might want to return to work after they retire or resign, but only a small percentage actually pursue it. News stories about CEOs coming back after they resigned or retired are rather rare, probably because it's an atypical event. Still, just because the majority of CEOs don't formally reverse their decision doesn't mean they leave without regret, doubt or confusion.
"While it is without question a very difficult job, being CEO comes with a lot of prestige, perks, power and money. CEOs get to make important decisions, work with talented senior teams and typically have the support mechanisms to do their job readily at hand. The work is interesting and challenging. It’s as addicting as being on drugs," says Ms. Hagemann.
For retired CEOs, the initial few weeks of relaxation can be pleasant, but they might not know what to do when they want vacation to be over and to return to work.
"They may look up from their morning coffee and wonder what they are supposed to do with the spouse they hardly know after so many years of long hours and constant work-related events," says Ms. Hagemann. "The spouse may be thinking the same thing. They probably have money but may not feel important anymore, no longer needed — lost."
To avoid this dilemma, Ms. Hagemann suggests CEOs meet with a leadership coach and thought partner to mentally prepare for this shift. These coaches can also help the CEO make sure he/she is 100 percent ready to retire or resign, and this decision won't be regretted in two weeks or two years down the line. Finally, leadership coaches can help the CEO learn to let go — a task that may be difficult after years of being held responsible for an organization.
2. Reversing resignation or retirement decisions disrupts the workplace. When a CEO decides to retire, this should trigger a series of planned steps, such as announcements within the organization and to the community; meetings with key stakeholders; and the enactment of the hospital's succession plan — whether it be an internal or external search for the replacement CEO.
"Reversing the train after it left the station creates confusion and simply postpones the inevitable," says Ms. Hagemann. It not only disrupt succession procedures for hospital administration, but a change in mind also leaves employees confused and disturbs their adjustment to change.
"[Employees] grieve the loss, if [the CEO] was a good leader, and begin to look to the future for a new leader. They anticipate change and hope for some good changes, maybe some that the past CEO would never have made," says Ms. Hagemann. The CEO coming back with a change-of-mind throws this process out of whack.
3. CEOs can still contribute to the hospital after they leave. A CEO doesn't necessarily have to cut ties with the hospital when they retire — they just have to sever their connection to the CEO suite, according to Ms. Hagemann.
"There are many ways the CEO can continue to contribute after the new leader has had time to firmly establish his/her leadership seat. The retired CEO could help raise funds, lobby for governmental changes that help the hospital, mentor senior leaders and physician leaders and much more," she says.
Boards may recommend new, external roles that build upon the strengths that CEO already demonstrated during his/her tenure. Still, CEOs need to have some time away from their direct connection to running the hospital. This temporary separation lets the CEO come back and fulfill external roles with a renewed perspective that he/she is no longer in charge.
4. Board members need to talk to the CEO and find out why he or she really wants to come back. When a CEO returns to the board with a "change of heart" or conflicted feelings, there is a great opportunity for boards to reach out and help the former CEO through this time of uncertainty. It may seem as though the board is the barrier to the CEO's return, when really, they can be a source of great mediation and advice for the leader.
"The board members need to have an honest and open discussion with the retired CEO to zero in on exactly what is bringing about the change. Most boards are filled with smart leaders who may have themselves been through such a transition. They can, in turn, mentor the CEO on making a successful transition out of the role without reversing plans already well into execution," says Ms. Hagemann.
5. A reversed resignation can be a ding in a stellar CEO career. It probably won't cause a CEO's career to crash and burn, but a change-in-mind over his/her retirement or resignation can certainly blemish a career. It says something about the individual's decisiveness and leadership, and may cause people to think twice before trusting them with hefty decisions.
"While flip-flopping on a major decision doesn’t look good on anyone's career, it will most likely not prevent the retiring CEO from having a successful legacy or future work if desired," says Ms. Hagemann.
Related Articles on Hospital Leadership:
10 Traits of Top Healthcare LeadersIn Transition: How to Find the Right Interim Hospital CEO
Leading Change With Vigor: 6 Questions and Answers for Hospital CEOs