When CEO Transitions Mean Trouble
Yesterday I quipped via Twitter that it was a great day to put out a press release if you didn’t want anyone to pay attention to it.
This wasn’t actually intended to be advice, but apparently someone was listening. Seventh Generation announced the … hmmm, departure of the outspoken, high profile founder Jeffrey Hollender amidst all of the post-election hubbub.
Neither side is saying much, but the conventional wisdom suggests that it may have been an issue of affecting a true transition in the succession of leadership to the handpicked, Pepsi-grown CEO Chuck Maniscalco, who quietly resigned only a year after taking the CEO position.
The online community is lamenting over the loss and questioning the future commitment of Seventh Generation to the environmental principles that are the core of its brand. Some consumers are saying that they will go back to vinegar and baking soda because they don’t trust a company that would oust its founder. There have even been attempts to start a grassroots movement to call headquarters.
Hollender, an iconic folk hero among eco-loyalists, is admired for his direct, outspoken nature that is Vermont’s version of Richard Branson. More than one person is comparing his ousting to the now infamous and ultimately ill-advised ousting of Steve Jobs by Apple back in the day.
But at the heart of the issue is the lack of transparency. The suspicious timing of announcing a decision that was apparently determined more than a week ago, the unceremonious removal of Hollender’s bio from the company website, no press release about his departure and the vague comments of the company’s “conversationista,” such as describing the company’s recent history as a “difficult period.”
Sudden leadership transitions present unique communications challenges. It is even tougher when the CEO in question is as high profile and iconic as Hollender. The volume of blogs, tweets and re-tweets are testimony to our long-standing point of view on the need to tell your own story.
Nature abhors a vacuum. If you don’t tell your story, someone else will … and probably not to your liking.
