CEOs’ Blind Spots – Final Years – Asrar Qureshi’s Blog Post #1161

CEOs’ Blind Spots – Final Years – Asrar Qureshi’s Blog Post #1161

Dear Colleagues! This is Asrar Qureshi’s Blog Post #1161 for Pharma Veterans. Pharma    Veterans Blogs are published by Asrar Qureshi on its dedicated site https://pharmaveterans.com. Please email to pharmaveterans2017@gmail.com  for publishing your contributions here.

Credit: Amorie Sam

Credit: cottonbro studio

Preamble

These posts are inspired by McKinsey research. Link at the end.

In Pakistan, most CEOs of private businesses are owners who rarely retire. The succession goes to their children, who sometimes get quite old waiting for the father to handover charge. The following applies to owner CEOs also.

The Late-Tenure Leadership Dilemma: Navigating Clarity, Legacy, and Succession

We are looking at CEOs journey in phases, an energetic start full of bold moves, a middle stage of consolidation and refinement, and the latter years, where legacy and succession loom large. While early years are characterized by risk-taking and vision setting, the latter phase of a CEO’s tenure brings a different, often more complex set of challenges. Strategic clarity, decision-making, and team cohesion can become clouded by personal motivations, market pressures, and the inevitability of leadership transition.

This stage is frequently overlooked in leadership discussions, but it is precisely where organizations are at risk of stagnation or turbulence. 

Let us unpack these dynamics and explore how CEOs, and the organizations they lead, can better navigate this stage.

The Fear of Legacy Loss

In the twilight years of leadership, the question of legacy weighs heavily on CEOs. After years of hard work, bold decisions, and the personal sacrifices tied to leading an enterprise, no leader wants their final chapter to be remembered as one of failure. This often drives a shift in decision-making behavior.

Many CEOs, instead of pursuing bold long-term strategies, begin optimizing for stability. They prioritize near-term results, particularly earnings targets, over long-term investments. While this may preserve quarterly performance, it risks hollowing out the company’s capacity for innovation and adaptation. The fear of a “ball drop” late in the game makes leaders more conservative, less adventurous, and in some cases, hesitant to disrupt even when disruption is necessary.

The irony is that, in trying to protect their legacy, CEOs sometimes damage it. Stakeholders may later judge them not for avoiding disaster, but for leaving the organization ill-prepared for the future.

The Opposite Extreme: Overreach and Risk-Taking

On the other end of the spectrum, some CEOs go the opposite direction. To avoid being labeled as “caretaker” leaders or to combat a slowdown in growth, they may take reckless risks. These could include hasty acquisitions, aggressive international expansions, or entry into markets where the company lacks capabilities.

These moves, often undertaken in the name of keeping momentum alive, may destabilize the business. The desire to make a final bold imprint on the company can sometimes overshadow rational, well-considered strategy. A few high-profile cases in corporate history illustrate how late-term overreach resulted in years of damage repair after the CEO’s departure.

The key issue is balance. Leaders must recognize the temptation to either overly protect or overly gamble as they approach the end of their tenure. Both extremes jeopardize organizational health.

The Succession Trap and Team Dysfunction

Another critical challenge during a CEO’s final years is the succession process. Ideally, succession is carefully planned, transparent, and smooth. However, in reality, many CEOs undermanage this process, either because they fear discussing their own departure or because they overestimate how much time they have left.

This creates fertile ground for dysfunction within the leadership team. Ambitious executives begin jockeying for position. Alliances form, rivalries intensify, and politics seep into decision-making. Instead of working collaboratively for the company’s future, senior leaders become distracted by personal advancement.

At the same time, lower performers who sense they won’t survive the transition disengage or resist change, eroding team morale. The CEO, once a unifying figure, now inadvertently becomes the source of division by failing to address succession proactively.

When teamwork suffers, so does strategic clarity. Execution slows, alignment weakens, and the organization drifts during a period when strong direction is most needed.

The Strategic Clarity Challenge

All of these factors, legacy concerns, risky overreach, and succession politics, culminate in one central issue: the erosion of strategic clarity.

A clear and compelling strategy is essential to organizational performance. Yet, in the latter years of a CEO’s tenure, this clarity often dissolves. Decisions may be inconsistent, shifting between conservatism and overambition. Teams may receive mixed signals as the CEO tries to balance short-term goals with long-term possibilities. Competing succession candidates may push conflicting agendas, further muddying the waters.

The result is a company that loses momentum precisely when it needs stability and direction the most. Employees may become disengaged, markets may perceive weakness, and competitors may exploit the ambiguity.

Lessons for CEOs Approaching the Transition

So, how can CEOs avoid these pitfalls in their later years? Several lessons emerge:

Redefine Legacy as Continuity, Not Control

A CEO’s legacy is not about being flawless to the end; it is about leaving the organization stronger for the future. Leaders must redefine legacy from “protecting what I’ve done” to “enabling what comes next.” This mindset shift allows them to make bold but thoughtful decisions without being paralyzed by fear.

Balance Prudence with Courage

Neither excessive conservatism nor reckless boldness serves the organization. CEOs should seek balance, leaning on data, governance, and diverse perspectives to guide decisions. Asking, “Will this decision strengthen the company beyond my tenure?” can act as a safeguard against extremes.

Proactively Manage Succession

Transparent, well-managed succession planning is the antidote to team dysfunction. CEOs should work closely with the board to identify, develop, and announce successors in a way that fosters unity rather than rivalry. Involving the team in transition planning also reassures employees that continuity is being prioritized.

Keep Strategy Simple and Forward-Looking

As tenure winds down, CEOs must focus on simplicity and clarity. Rather than embarking on sweeping reinventions, they should consolidate the strategy into a few clear priorities that can carry the organization forward. Communicating these priorities with consistency and conviction ensures stability during transition.

A Leadership Journey, Not an Ending

Ultimately, the latter years of a CEO’s tenure are not merely about endings—they are about transition. The true test of leadership is not only how one starts but also how one exits. A well-managed transition can secure a CEO’s legacy far more powerfully than chasing short-term wins or avoiding risks at all costs.

Great leaders recognize that their role is temporary, but their impact is enduring. By embracing this truth, they can leave behind not just memories of their leadership but a living, breathing organization capable of thriving in the years ahead.

Sum Up

The final chapter of a CEO’s journey is often the most delicate. Strategic clarity may blur, teamwork may falter, and legacy pressures can distort judgment. Yet, by acknowledging these dynamics and addressing them head-on, CEOs can turn potential pitfalls into opportunities for growth and continuity. The essence of leadership is not in avoiding challenges but in navigating them with wisdom, humility, and foresight. For CEOs nearing the end of their tenure, this means letting go of ego, embracing succession as a responsibility, and focusing on leaving behind clarity rather than confusion.

In the end, the measure of a leader’s success is not just what they built, but how well they prepared others to carry it forward. That is the legacy worth striving for.

Concluded.

Disclaimers: Pictures in these blogs are taken from free resources at Pexels, Pixabay, Unsplash, and Google. Credit is given where available. If a copyright claim is lodged, we shall remove the picture with appropriate regrets.

For most blogs, I research from several sources which are open to public. Their links are mentioned under references. There is no intent to infringe upon anyone’s copyrights. If, any claim is lodged, it will be acknowledged and duly recognized immediately.

Link:

https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/seeing-ceo-blind-spots?stcr=798248FAF7894947B6105FBD8EB75F4D&cid=mgp_cfas-eml-alt-mkq-mgp-glb--&hlkid=3bcc27ef57ea40bfa9f1349a052031d4&hctky=15999472&hdpid=09da9c7e-dbdf-4d66-9190-0d3019d55a6b