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Transcript

E22 — Do's and Don'ts of CEO Succession with Nic Brisbourne

"To change the CEO is not a decision that we ever come to lightly. The chances of it working are 50% to 60%."

With over 25 years of experience in venture capital, Nic Brisbourne, a senior partner at Molten Ventures, has seen many CEO successions. One of them was at Makers, the business I founded and ran until 2020 when I stepped down as CEO. (I interviewed my CEO successor Claudia Harris in an earlier episode.)

His advice?

The first thing is to try [getting] involved with companies where you're not going to need to transition the CEO.

Why? CEO transitions are very risky at the best of times.

Whenever you hire a new chief exec into a company, maybe the chances of it working are, like, 50% to 60%.

Yet, sometimes, the CEO change is exactly the right thing to do, as was the case at Makers.

In this episode, Nic and I discuss the do’s and don’ts of CEO succession that he learned by participating in several leadership transitions in his portfolio, including, of course, my own startup, Makers.

Enjoy the conversation!

Timestamps

(Clickable on YouTube)

00:00 Introduction

02:14 How Not To Force Out a CEO

09:12 The Risks Of Removing a CEO

10:52 Selecting the Right Successor

14:59 We'll Invest If You Step Down

19:58 CEO Transition at Makers

27:05 Key Factors for a Successful Transition

32:00 How To Start Discussing a CEO Succession

39:42 CEO Performance vs Company Performance

41:25 Advice for Founders and Investors

49:01 Final Reflections