Leadership Transitions: Exploring the Social, Psychological, and Organizational Factors Affecting Founder/Executive Departure

Executive/Founder transition is a phenomenon that occurs in every organization. While organizations are aware of the need to plan for transition, the common experience of this change is negative for both the leader and organization. Existing studies predominantly have focused on the mechanics and practical outcomes of change with some research assessing the emotional and psychological state of stakeholders. However, theoretically grounded thinking that assesses the wider dynamics and motivations that shape the phenomenon beneath the emotion and psychology of change are obvious in their omission. The stakes of organizational leader transition are too high not to develop a broader theoretical model for how the process is experienced by the departing leader and his or her organization. This thesis frames executive/founder transition in a conceptual framework that draws on anthropological, sociological, psychological, and new scientific theories regarding transitional dynamics. Using a case study methodology, six organizations were investigated to interrogate positive and negative exemplars of transition against six theoretical propositions. The research found that the notion of transitional alignment in the structure, heart, and dynamics of the process are precursors to more positively experienced executive/founder transition. Conversely, where less transitional alignment is present, the process will be more negatively experienced.