When CEOs and their boards are in the market for a change in corporate direction, one solution is to bring in an outsider as president and heir apparent, with the expectation that he or she will eventually move into the company's top spot. According to research by HBS associate professor Michael Watkins and consultant Dan Ciampa, however, this is a strategy that can be quite perilous.

Some executives come in thinking they already know the solution to every problem. Others become isolated or try to do too much too soon. And the list of other potential problems goes on and on. As a result, Watkins and Ciampa found, nearly half of all "executives who were appointed president but not CEO of publicly traded U.S. corporations in 1993 had left their companies within the next four years without being named CEO."

To help improve the odds of a successful transition, the two researchers have written Right From the Start: Taking Charge in a New Leadership Role (HBS Press: 1999). "Our intent," they state, "is to offer prescriptive advice to new leaders in corporations about how to take hold and surmount the challenges of transition, transformation, and succession." Although written explicitly as a guidebook for the number-two executive¹s first six months in office, the book also contains a wealth of useful advice for anyone taking on a new job. What follows is a series of excerpts from Watkins and Ciampa's work:

The most important initial task facing the new leader is to create momentum during the transition period. She typically has a window of two or three years to achieve substantial improvements in performance. If she can establish herself and move the organization in promising directions by the end of the first six months, she will have created a base that will make it much more likely that the remainder of her [initial period of time] in the organization will be a success. If she fails to create enough momentum by the end of the transition period, she will face an uphill battle...

When the leaders we interviewed were asked what it takes to create momentum during the transition period, they consistently emphasized three strategies. The first is to secure early wins by addressing vexing problems the organization has not been able to solve. The second is to lay foundations for deeper change by beginning to establish political and cultural bases necessary beyond the transition period. The third is to build credibility with employees and the CEO. Our own observations suggest a fourth strategy: that new leaders must orient themselves effectively by mapping the organization's existing strategy and assessing its technical capabilities, culture, and politics.

	The essence of good counsel lies in the leader gaining insight (including self-knowledge) through dialogue.

By mastering learning, visioning [the process of creating a personal vision of an ideal future state and preparing to make it a shared vision], and coalition building during the transition period, the new leader builds momentum for change. Effective learning accelerates the clarification of an informed vision. This vision helps the leader to create strong coalitions, which in turn stimulate more learning as the leader taps into supportive people for information and insight. The result is better decisions much earlier in the leader¹s tenure than would otherwise be possible. Those decisions further increase the pace of the leader's learning.These self-reinforcing virtuous circles proved instrumental during the transitions of the successful leaders we spoke with.

New leaders inevitably face resistance when they make changes. While some pivotal people and groups will genuinely and actively support a new agenda, others will be indifferent, undecided, or even implacably opposed. Three main reasons for such resistance emerged repeatedly in our research: negative past experiences with change, anticipated loss, and a poorly designed change process.... Underlying each of these sources of resistance is a perceived threat to the "social contract" between employees and the company: the explicit and implicit understanding that it is the duty of employees to work hard and be loyal, and that the employer's corresponding duty is to provide security and treat people fairly. Even the appearance of a breach of this contract can trigger intense feelings of betrayal and generate opposition that can be very difficult to reverse.

Because the new leader has a mandate for change, it is likely that some aspects of the social contract will be affected by what he is advocating. It is therefore particularly important for him to take the time to understand the social contract between the company and its employees and to think through how it will be renegotiated.

Facing many complex issues and expected to produce quick results, the new leader needs to locate the right information, to elicit the best analysis, and to use both efficiently and effectively. When it comes to the nature of new technologies, the dynamics of markets, and the strength of competitors, the new leader needs accurate analysis in order to decide on a course of action...

Counsel is something quite different. The essence of good counsel lies in the leader gaining insight (including self-knowledge) through dialogue. The contribution of the gifted counselor arises not from technical expertise but from his understanding of inter- and intrapersonal dynamics. Much more than is the case with advice, the relationship between leader and counselor is a reciprocal one. To offer insight into the complex political and personal challenges the new leader faces, the counselor must gain a deep appreciation of the leader¹s personality and the particular ways she learns, influences, motivates, and is motivated....While advice and counsel are useful for all leaders, for the new leader they can make the difference between success and failure.

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