By Rene Russo, CEO of Xilio Therapeutics, as part of the From The Trenches feature of LifeSciVC
As one thinks about the iconic break-up lines, it doesn’t take long to come up with:
- It’s not you; it’s me…
- I am not ready for a serious relationship right now…
- I love you but am not “in love” with you…
- We are at different stages in our lives…
- If we had only met at another time…
Each of them projects a barely veiled attempt to take responsibility for the breakup but not the relationship. This also often comes as a complete surprise to the recipient of “said break-up line,” which adds to the sting.
Variations of these same break-up lines are often used when a senior executive (C-suite level/Senior VP) chooses to leave their position at an emerging biopharma company. There are numerous reasons someone may decide to quit or change jobs. Whether for professional growth, expansion of the scope of responsibility, personal priorities, compensation, culture, or just something different. A change like this can propel the trajectory of someone’s career while ensuring we continue to refresh talent in our companies and build new capabilities. As leaders, we coach people to own their career development, and sometimes, changing roles and companies is an essential component of that development—all good on that front. This topic of senior executives changing jobs is not on the WHAT, however, but on the HOW!
The good news is that any career change can be navigated to lead to a positive outcome for all involved. The question is, why do so many senior leaders bungle it? Why aren’t we good at this? Probably because it’s not something we talk about or coach often enough. Think about it – as we climb the early career ladder in biotech our career choices are focused primarily on ourselves and our own plans and circumstances. There is tremendous freedom early in one’s career to make important decisions to change roles/companies without too much thought beyond the impact to oneself. As we gain more experience navigating these transitions, we learn what works and then things change.
When we begin to enter the senior VP and C-level ranks, the unwritten rules of how to navigate a career change come with different expectations. Let’s take a step back and think about the skills required to be a successful senior leader: 1) we must learn how to articulate a compelling vision, 2) attract key talent to our companies, 3) build relationships with our Board, 4) raise money from investors and 5) execute critical business development deals. We become an external face of the company and a trusted partner for the senior team. We are representing, on behalf of our company, all that it has to offer and all it can become to many external and internal stakeholders. We become highly visible. Executives are expected to understand this broader responsibility and apply that lens to successfully plan for, communicate, and execute a graceful exit.
Seems obvious, perhaps? The problem is that all too often, excellent senior executives stumble through this moment without a clear “rule book” and can find themselves unnecessarily leaving an organization having made a bad impression on the way out and, worse, burning bridges unintentionally. When done well, a smooth exit can turn even a tough situation into a positive. So how does one gracefully exit a senior executive position in a company? By taking the high road and being a class act!
Here are 6 factors to consider:
- PLAN AHEAD – Chances are you thoughtfully timed and executed many career moves to best serve your own needs (timing relative to year-end bonus, equity vesting, vacations and other life factors). Take this same approach with a corporate enterprise view when you plan your executive career move. Two weeks’ notice will not cut it (in fact anything measured in “weeks of notice” really doesn’t cut it at these levels), plan for a month or more if possible.
- TIMING BLUNDERS TO AVOID (yes, I’ve seen these happen…sigh): 1) are you in midst of a major deal or a financing? – don’t plan to leave your team midstream; 2) did you just accept this role or recently take a promotion? – that comes with an unspoken commitment of some reasonable amount of time – maybe I’m old school but I’d say you should plan to stay put and get some experience for a minimum of a year before you plan to move and 3) never accept a senior executive promotion (and allow it to be announced…cringe) in order to negotiate for another role and then leave – a bridge will be burned on this maneuver guaranteed.
- COMMUNICATE EARLY – Your career up to this point has been a thoughtful, carefully crafted series of moves that built your reputation and your cache as a leader. Likely you have invested a lot of yourself in your current role. Don’t throw that away. Your exit must be done with an equal level of thought and consideration. Remember, as a senior executive, you have been entrusted with the wellbeing of your entire organization; it is your duty and responsibility. Start by having a discussion with your CEO (ideally) or a trusted senior executive on the team like the CHRO or GC. Ideally, your relationship with your CEO is strong enough that you can talk to them as soon as you begin thinking about the career change. Once you’re out there interviewing, you can assume the company knows. Yes, this happens fairly often – biotech is a small world. If you can give your CEO a heads up, it will be appreciated and will build further trust with your CEO, other senior executives, and the board that will last long beyond the current role. BTW, CEOs hate surprises.
- Sidenote to CEOs – the onus is on you for this one too! It requires an open, constructive, and transparent career development dialogue with your senior execs to create the environment for this to happen.
- UNDERSTAND THE BROADER IMPLICATIONS – If the company is publicly traded, the timing, relevance, and impact of any executive officer’s departure could trigger a prompt disclosure, such as a press release and/or a Form 8-K, which is a form that is filed by public companies to notify their shareholders and the SEC when specified events take place. The implications of the timing of an executive departure to a private company must also be considered in the context of overarching events, including things like ongoing deals and financings (see blunders to avoid above). As an executive, working with the company before any final decisions are made or communicated can ensure a more planful approach and avoid unintended impact to the company and its employees.
- BE FLEXIBLE – Agree on a transition plan together with the company, and if possible, give the company as much time as it needs to allow for the optimal transition. Most won’t want to drag out a senior executive departure, but the flexibility will be appreciated and reflects your integrity and commitment to the duty and responsibility that comes with a senior executive position.
- THANK YOU’S GO A LONG WAY – If you can say something nice on the way out, say it! Open and public expressions of gratitude help ease the impact on those on the periphery (team members, external stakeholders, investors, employees) as they see that there is not a hidden untold story, and they can celebrate the transition as an opportunity for growth. It never hurts to thank those that believed in you, took a chance on you, worked alongside you, and prepared you for the next step you are about to take. Chances are the experience you had is what helped you get this next one!
In summary, breaking up is hard to do, yet taking the high road and behaving like a class act is not only possible but should be the goal. You can improve your leadership standing, your relationships and your cache in our very small biotech industry by taking the time to exit right. With mutual respect and perspective from the broader company’s point of view, breaking up can still be a win-win.