10 Tips to Successfully Step Into the “Chairman’s” Role versus the CEO’s More Active Role

When I first started coaching Tom, his business was stuck at the $5 million per year revenue marker. The biggest reason for that was that Tom had built his company around himself. He made the key decisions, approved the daily work, and managed the staff. He used his team to leverage himself, but he either did or closely managed all of the core work of his company.

Considering he was working 80 hours a week, it was clear that he was maxed out.

Over the following six years, Tom scaled his company to sales of $20 million per year and, at the same time, worked himself out of a day-to-day job in his own company. I’ve written about Tom in other articles.

What I want to focus on in this article is the transition from an active role running your company to a more passive role as its “Chairman.”

10 Tips to Successfully Step Into the Chairman Role

  1. Work through your CEO and empower them. Your influence is now indirect. Trust your CEO to lead and guide the team.
  2. Be a sounding board. Provide your CEO with feedback, fresh ideas, and support. You’re their partner in strategic thinking.
  3. Set clear expectations. Define what your CEO needs to share, how often, and what they are accountable for. Establish how you’ll stay informed.
  4. Avoid undercutting your CEO. If your team still sees you as the boss, they may bypass your CEO. Redirect them appropriately and share feedback through the CEO.
  5. Ensure a strategic business plan is in place. Collaborate on annual goals and strategies. Make the rules and expectations clear so the team can succeed.
  6. Track key metrics with a “scoreboard.” Monitor enterprise-level performance regularly. If something seems off, discuss it with your CEO immediately.
  7. Review financials monthly. Stay updated on the company’s health through regular financial and scorecard reviews and CEO check-ins.
  8. Align compensation with company strategy and values. Incentives must reflect and reinforce your mission, vision, and core values.
  9. Resist stepping back in. Micromanaging undercuts the authority and effectiveness of your CEO. Stay disciplined in your new role.
  10. But also don’t ignore the business. It’s likely your most valuable asset. Pay attention weekly and manage by exceptions, not immersion.

Good luck with your transition to owning your business more passively.

If you want to learn more about how to scale your business, I’m about to teach a new webinar that will focus on the key steps you need to take to grow your business and get your life back.

If you’d like to join me for this free training, please click here to learn more and register.