From Colleague to Boss: Smoothing the Transition for Internally Promoted C-Suite Executives

Congratulations on your promotion to the top of the C-suite—it’s one of the biggest successes of your career. But don’t pop the champagne cork just yet. Now comes the tricky part: winning over your colleagues, who are now your subordinates.

While you might think you have a leg up on external hires (after all, you already know where the good coffee machine is), internal promotions come with their own set of obstacles. Seventy percent of leaders making an internal move described the transition as being almost as difficult as joining a new company—and in some cases, even harder. 

But don’t worry. You’re not the first executive to walk this tightrope. In fact, internal CEO promotions are more common than you might think. Eighty-three percent of new CEOs are promoted from within their organizations.  

How to Manage Colleague Relationships After Becoming CEO

One of the biggest hurdles you will face is managing relationships with former peers. Transitioning from colleague to leader requires a delicate balance. Add to that the potential resentment from colleagues who were passed over for the promotion, and you’ve got yourself corporate drama in the making. 

So, how do you go from being “one of the gang” to “the boss” without alienating your peers? Here are some strategies: 

1. Redefine Relationships to Reflect Your New Role

According to Forbes, one of the main steps in managing workplace relationships after a promotion is to address the “800-pound gorilla in the room” by openly discussing the changes in dynamics and expectations with your team. 

Research from McKinsey shows that up to 46% of leadership transitions are regarded as failures or disappointments within two years. Poor management of relationships and organizational politics often contribute to this outcome. 

To be clear: Your promotion doesn’t mean you have to become a corporate robot, but it does require a shift in how you interact with former peers. You’ll need to strike a balance between maintaining rapport and establishing your new authority. This might mean fewer casual hangouts and more structured interactions.  

Successful internally promoted CEOs also often “reenlist” the people they want to keep through early, direct conversations. This approach helps to clarify expectations and align goals, which makes the transition easier (and less stressful) for everyone involved. 

You should schedule one-on-one meetings with team members you want to reenlist to discuss their roles, your expectations, and how you can support each other moving forward. This approach can help mitigate any potential resentment or confusion. 

2. Establish Clear Boundaries Regarding the Flow of Information

Remember those casual chats by the water cooler about the latest office gossip? As a new CEO, you’ll need to be more careful about these conversations. You now have access to sensitive information that can’t be shared freely over a latte. Be transparent about this change with your team. Setting clear boundaries around information sharing is necessary for maintaining respect and trust. 

But effective communication as a CEO isn’t just about withholding sensitive information. It’s equally important to ensure you disseminate the necessary information to the right people. And, in this case, the stakes are high: according to the Project Management Institute (PMI), poor communication can cost companies $75 million for every $1 billion spent on projects. 

Your communication style will need to evolve too. As a peer, you might have been more casual or informal in your approach. Now, your words carry more weight. You’ll need to be more deliberate and strategic in your messaging, considering how it might be interpreted at all levels of the organization. This doesn’t mean becoming stiff or unapproachable—you need to find the right balance between being relatable and maintaining the gravitas your new role requires. 

Unfortunately, only about one in ten employees feel that their company’s leaders communicate information effectively, ensuring it’s heard and understood by those who need it. In this area where many leaders struggle, you can set yourself apart by prioritizing proper communication from day one in your new role. 

3. Treat Team Members Equitably

Employees who strongly agree that their manager treats them fairly are 3.4 times more likely to be engaged at work. And employees who perceive their organization as fair are 26% more likely to perform better and have 27% higher retention. The moral of the story? When employees feel their leaders are fair, they flourish—and thus you need to be seen as a fair leader. 

Your former lunch buddies might expect special treatment now that you’re in charge. Resist the urge to play favorites. If you show preferential treatment, you’ll quickly find yourself labeled as unfair by your subordinates. If you agree to something with your old teammates, the wider team will be watching you and expecting equal treatment. 

As a CEO, you’ll need to be more conscious of how your actions and decisions impact the entire team. This might mean stepping back from close friendships within the workplace or being extra careful about how you distribute assignments and recognition. Don’t become distant, but ensure that your personal relationships don’t cloud your professional judgment. 

Remember, with great power comes great responsibility… and a lot more scrutiny. Don’t just intend to be fair—really be fair by ensuring everyone on the team is held to equitable standards, and has equitable outcomes and opportunities. 

4. Manage the Outgoing Executive’s Departure

Poorly managed leadership transitions can lead to a 20% decrease in employee engagement and a 15% drop in team performance. They also negatively impact morale and employees’ sense of security. To succeed in your new role, managing this transition effectively is important. 

If you’re replacing a beloved leader, tread extra carefully. It’s akin to being a new stepparent—you need to respect existing dynamics while establishing your own authority. 

As the incoming CEO, you’ll need to thoughtfully consider both continuity and change. Evaluate which successful initiatives or practices from the previous leadership you’ll keep, and where you will implement new approaches. Be prepared to clearly explain your decisions to the team. This approach shows respect for the company’s history while setting the stage for your vision of its future. 

Consider organizing a thorough handover process, ideally collaborating with the outgoing CEO on a transition plan. This not only shows respect for their work but can also help you win over their loyal followers. Their endorsement can be a powerful tool in establishing your credibility and authority in your new role 

The Silver Lining

While the transition from colleague to boss can be challenging, it’s not all doom and gloom. Internal promotions also have many advantages. You already understand the company, know the key players, and have established credibility. 

You were chosen for this role for a reason. You have the skills, the knowledge, and now, the title. So, straighten your tie, take a deep breath, and step into your new role with confidence. After all, the view from the C-suite is pretty great—even if it comes with a few more gray hairs. 

About the Authors

Tom Christensen, Global Vice Chair of Practice Groups and Managing Partner of Stanton Chase Oslo, brings over 16 years of experience in the Consumer Products and Services Industry to his executive search career. With a background that includes executive positions at PepsiCo and McCann Erickson in Norway and Northern Europe, Tom transitioned to executive search in 2001 and co-founded Stanton Chase Oslo in 2007. His expertise spans Consumer Products and Services, Technology, and Private Equity, making him a valuable asset in international executive recruitment. 

Kevin McGonigle is a Director at Stanton Chase Atlanta and Global Advisory Leader for Leadership Assessment and Succession Planning. Over his three-decade-long career, he has garnered extensive experience across various industries, including telecommunications, high tech, financial services, hospitality, consumer goods, and industrial. His career spans five continents and includes prominent Fortune 500 companies, private equity firms, and family-controlled businesses.