On November 1st, 2011, Ron Johnson, formerly Apple’s retail chief and mastermind behind the Apple Store assumed the role of CEO of JC Penney. (JC Penney was an American department store chain retailer with 1100 stores mainly in Malls and a total annual Revenue of $17.3bn in 2011.  The chain focused on affordable lifestyle products for middle class households.)  The stock price on that day was just below $34/share. 1 year later the stock had lost over 40% of its value and 17 months from the date of his succession, he was summarily fired with the stock price at $15.87/share.

Most poor leadership transitions are neither as spectacular nor as obvious as the JC Penney example. There are, however, some common components of leadership transitions at any level within an organization that are underappreciated in those unsuccessful cases. Seeing a leadership transition as a change management exercise as much as a change at the top of the organization can make the transition itself much smoother and more successful. Some key components of change management that apply to Leadership Transition include beginning early, including all stakeholders, understanding, and addressing resistance to change, and leveraging (WC) EQ.

Beginning transition planning long before the event itself is critical. Whether the new leader comes from inside the organization or is hired externally, having a plan for the transition and discussing it appropriately with the relevant stakeholders destresses the situation for when it does arrive. It also allows for much of the resistance to change to be addressed early and in a far less incendiary setting. If this is an internal succession, it allows for more time for the present and future leaders to plan, validate and communicate the transition. Most business executives are only tangentially (WC) aware of the importance of planning for their own successor or are concerned that by thinking of their successor they will be put out of a job/no longer be needed. Of course, it is the exact opposite as most managers will be reluctant to promote you until there is a suitable replacement. Obviously, HR Executives can play a significant role in Leadership Transition planning by initiating Succession planning within their organizations, making it a top priority, and encouraging leaders to have a plan that is current and updated appropriately. 

Once the new leader has taken over, one of their first tasks, whether from inside the organization or brought in from the outside, is to get their team aligned and onboard. In order to do this as the new manager, you must overcome your team’s resistance to change.  With any major change (and yes, your appointment as leader is a huge change in the life of your team) human beings will naturally resist. The first step is to identify all the key stakeholders in the transition and then to engage them in helping to make the transition successful for not only you as the leader, but them as the involved party. Many of them will naturally resist your new role as their leader. Engaging them to be part of the solution will go a long way to making the transition successful.

Even having widened the circle and included the team in making the transition a success, there will still be the need to overcome their resistance, which starts with identifying the cause. This usually comes in the form of either Rational, Emotional, or Political resistance. Rational Resistance usually takes the form of “I don’t believe that the change makes rational sense”.  It is usually the easiest of the three types to address. Political resistance to change will not be as easy to spot and should not be as prevalent. It is not expected that many team members will feel as if their political loyalties are torn. And if they do, the individual will usually not express it in such straight-forward terms as, “I will be at odds with other political forces within the organization by aligning myself with you.”  The most prevalent and most difficult to diagnose is Emotional Resistance. 

Emotional Resistance generally springs from fear. Amongst other reasons, team members may be afraid of losing their standing within the team, being seen as less competent than their previous leader, and not knowing about their job role. While this may manifest itself in numerous ways there a few strategies that can be put in place to break down the underlying resistance and align the team. These include focusing on your own Emotional Intelligence and making a conscious effort to build trust with and amongst each individual team member. 

Ideally the outgoing leader can dramatically help the new leader overcome (or at least start to overcome) much of this resistance. It is your job to enlist the person you are replacing to help you manage this as much as possible. HR departments have a hand to play in easing the transition from one leader to the next, especially if the succession is well planned. These conversations between the incoming and outgoing leaders may be personally difficult as egos are involved. Nevertheless, a good HR executive should be able to effectively facilitate those discussions that will help the new leader understand the environment they are walking in to, as well as suggest conversations and actions the outgoing leader can take to help ease the transition. 

Emotional Intelligence (EQ) is one of the hallmarks of a good leader. This is also a trait that can help speed the transition of your new leadership among the team. Defined as the ability to recognize, understand, and deal skillfully with one's own emotions and the emotions of others. When you as a leader can understand why you are feeling the way you are and react to those feelings appropriately, you have taken the first step to overcoming your new team’s resistance. The second half of that equation is understanding (and caring about) the emotions of your team. As this is not a completely mature skill within most leaders, HR executives can play a role here by suggesting that the new leader work with a coach prior to and through the transition. If the outgoing leader will be staying within the organization, a coach can be equally important for both the transition they are making out of the current role as well as the one they are making to their new role.

Leadership transitions are inevitable, but their outcomes are not. Treating them as structured change management initiatives can mean the difference between failure and success. As the J.C. Penney example highlights, even a visionary leader can falter without the right preparation and support. The key lies in early planning, proactive engagement, and a focus on the human side of change.

Organizations that prioritize succession planning and invest in leadership development are far better equipped to navigate these transitions. HR executives play a pivotal role in fostering this culture, encouraging leaders to plan not just for their successors but for a seamless handover that minimizes disruption. 

By addressing resistance, aligning teams, and leveraging emotional intelligence, businesses can transform what is often a turbulent process into a strategic advantage.

Ultimately, successful leadership transitions do not just ensure business continuity—they set the stage for innovation and growth under new leadership. By approaching them with care, strategy, and empathy, organizations can turn a potential challenge into an opportunity for renewal and transformation.