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change management

Leaders

The hidden risk in CEO transitions: executive team derailers

Mar 3, 2026

CEO transitions are a consistent focal point in annual reports and board discussions. What receives far less attention, in research and in practice, is how the executive team prepares itself for the change. And yet, this is where success or failure often begins.

A change at the top extends beyond strategy. It alters relationships, shifts influence, and resets informal power structures. “When a new leader joins the executive team, something has irreversibly changed,” says Tommi Lehtinen, owner and lead consultant at SCCG, who has been assessing leaders for decades. “As an executive team member, it is important to recognize that all the dynamics that start unfolding immediately will be reflected throughout the entire organization.”

Tommi Lehtinen, owner and lead consultant at SCCG, is an executive-level HR consultant and organizational psychologist, specializing in leadership assessment and executive team development and dynamics. Photo by SCCG.

These internal dynamics are the underexamined side of CEO succession. The scale of change alone suggests they deserve more scrutiny. According to the CEO Index — Finland | 2025, produced in partnership with SAM Headhunting, 44 CEO changes took place in listed Finnish companies during 2025 alone, meaning that almost a quarter of them welcomed new leaders. Large-cap companies experienced the highest relative turnover, with more than one-third changing CEOs during the year. In many cases, leadership change triggered broader reshuffling at the top.

“It is important to recognize that the executive team acts as a mirror to the organization,” Lehtinen says. “If members do not commit to and trust the new CEO, this will be reflected throughout the organization and may paralyze the whole.”

The human side of succession

Boards sometimes assume that seasoned executives will simply adjust and move forward. Lehtinen considers this a flawed assumption. “They are ordinary human beings with emotions, facing something new. Everyone reacts in their own way,” he says.

Uncertainty, curiosity, concern, and even quiet fear can surface. Under pressure, predictable patterns emerge. In organizational psychology, these are known as derailers: stress reactions that push capable leaders off track.

“One common reaction is withdrawal,” Lehtinen explains. “People become quiet. They observe from the sidelines.”

Another frequent response, particularly in Nordic contexts, is passive aggression. “In the executive team, people may appear constructive. Decisions may be slowed down. Behind the scenes, actions may even go against agreed decisions.”

The most subtle version is superficial cooperation. “It is a withdrawal from genuine collaboration, replaced by superficial cooperation.”

A capable CEO will interpret many of these reactions as normal responses to change. But Lehtinen stresses that responsibility does not rest solely with the incoming leader.

“There should be responsibility at the executive team level. Members should recognize their own emotions and process them so that they do not surface destructively.”

Four ways executives can prepare for a CEO transition

Lehtinen outlines four practical starting points to help executives navigate a CEO transition.

Recognize your own derailers

Before debating strategy, examine your defensive reactions. Do you withdraw? Tighten control? Become overly critical? “Members should recognize their own emotions and process them so that they do not surface destructively,” Lehtinen says. 

Separate ego from enterprise

Transitions inevitably trigger status concerns. That is human. But protecting personal territory at the expense of enterprise coherence is costly. Leaders must, in Lehtinen’s words, “let go of individual drivers that only protect one’s own ego and instead commit, take responsibility, and help the whole succeed.”

Start from trust

The baseline assumption shapes behavior. “The new CEO was hired for a reason. It is reasonable to assume that he or she wants to do the job well.” Trust does not imply blind loyalty. It means enabling collaboration first and recalibrating based on evidence rather than fear.

Make commitment visible

After clearing the “ego cache,” proactively shape the next phase of growth through clear, deliberate communication. Reinforce consistent messaging, define sharp priorities, and foster open yet constructive debate to project stability to employees at a moment when reassurance matters most.

Moving deeper into a new year of slow economic growth, CEO changes are likely to remain a defining feature among listed Nordic companies. The differentiator will not only be the choice of leader, but the readiness of the executive team to step into the next chapter together.

Leaders

Change capability is becoming companies’ most critical competitive advantage

Jan 28, 2026

Where previous technology waves have typically unfolded over 15 to 20 years, the main wave of artificial intelligence is expected to last only five to 10 years. “Change capability means that a company is able to learn and renew itself at least as fast as its operating environment is changing,” says Riikka Tanner.

The ability to adapt may now be the most decisive factor in corporate competitiveness, says Riikka Tanner, a strategy and leadership consultant and author. In today’s business environment, companies are no longer competing solely through products, customer experience, or technology – they are increasingly competing on whether they can benefit from ongoing change faster than their rivals.

Tanner’s latest leadership book, Muutoskyvykkyys (“Change Capability”), will be published by Alma Insights in March. The core idea behind the book stems from a striking observation: previous technology waves have typically unfolded over 15 to 20 years, whereas the main wave of artificial intelligence is expected to last only five to 10 years.

“Change capability means that a company is able to learn and renew itself at least as fast as its operating environment is changing,” Tanner says.

While products, processes, and technologies can often be copied, Tanner argues that the behavioral and cognitive patterns of an organization are what truly determine long-term success – and they are nearly impossible to replicate.

In a change-capable organization, change is not driven by projects. Instead, it is embedded into everyday ways of working. Leadership is not about control, but about creating rhythm. Rather than merely reacting, organizations must learn to anticipate developments and detect weak signals – learning and adapting before they are forced to.

Traditional organizations tend to focus on execution, efficiency, and metrics. In capability-driven organizations, the emphasis shifts toward learning, thinking, and the quality of decision-making.

“In a performance-driven culture, what matters is a result,” Tanner says. “In a change-capable organization, it’s equally important how the organization’s thinking develops along the way.”

Riikka Tanner is the author of the upcoming leadership book Muutoskyvykkyys (“Change Capability”), to be published by Alma Insights in March.

Learning must be led, too

According to Tanner, Finnish companies are in a relatively strong position when it comes to building change capability. Psychological safety is often high, and organizational hierarchies tend to be low.

However, learning is an area that requires particular attention.

“In Finnish working culture, we treat learning as a by-product,” Tanner says. “The prevailing idea is that learning accumulates alongside business, without us actively leading it. This means the majority of learning potential is left unused.”

Tanner argues that learning needs to be systematically aligned with the company’s strategy and growth – not only at the individual level, but also at the team level.

The question, she says, must be faced directly: if an organization aims to change as fast as its environment, what pace of learning does that actually require?

The World Economic Forum estimates that by 2030, nearly 40% of core skills at work will have changed. Tanner notes what this means in practice: companies would need to update 6–7% of skills every year. To keep up, employees would need to dedicate roughly 8–15% of their weekly working time to learning—equivalent to one working day every two weeks.

Leaders must make their thinking visible

Do organizations have enough time for thinking? Tanner believes the answer is largely no.

She is involved in the annual Johdon agendalla (“On the Leadership Agenda”) trend report, which this year gathered responses from more than 200 business decision-makers in Finland. Of those respondents, 42% believed that there is not enough time for thinking in organizations. Only one in 10 felt that their own manager makes their thinking visible.

“I believe an organization can interpret the world, anticipate changes in its environment, and learn to think collectively only if leaders make their own thinking visible,” Tanner says.

In today’s environment, Tanner argues, a leader’s most important task is directing attention.

“Results follow what we choose to focus on,” she says.

Focus, in this context, is ultimately about sense-making – building a shared understanding of reality and direction across the organization. “As change becomes both faster and more intense than ever, the goal is not simply to run twice as fast. It is about whether companies dare to let go of half of what they are currently doing, in order to make room for something new and fundamentally necessary for renewal.”

In practice, this means saying no more often—and dismantling old, cemented ways of working.

"The real question for leaders is not what to add next – but what they are prepared to let go of, " Tanner says. "As change accelerates, unlearning becomes the real advantage.” 

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