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Founder Transition Coaching

Now that you have decided and gotten convinced you need to hire an outside CEO, you will recruit your replacement based on an unconditional trust with the selected candidates – which by human nature will be difficult to find.  There several ways you may continue your involvement with your enterprise; but you are unsure which of four hats you want or can wear: founder, major shareholder, director or employee; or a combination.

Of course, you remain the founder, and as such, you will continue to enjoy the pride of seeing your enterprise grow.  You can retreat to a shareholder position and influence the organization at shareholders’ meetings, once a year.  You can retreat to the board of directors, and even assume the chair position and influence the organization’s direction a board of directors’ meetings, quarterly.  You can also remain active inside the organization as staff to the new CEO – taking on the role of Chief Technology Officer, being a typical role. 

Transitioning from a founder to a hired CEO is a significant challenge for any organization.  There are countless examples of founders that “literally burn” 2-3 CEOs in a period of 4-5 years.  Stated out of context, all will realize the negative impact that such instability will bring to an organization. 

RGB Global has lived several such transitions and can assist your organization in many ways:

  • Coaching of founders and CEO in the transition period
  • Assisting in crafting the role of the founder such that value is created to both the organization and the founder.
  • Assisting in developing a governance model that implement best practices
  • Assisting in develop a Board of Directors charter
  • Creation of appropriate clauses in a Shareholder’s Agreement

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Published at 20:01

11 March 2011

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