The challenge of replacing Jensen Huang, the visionary co-founder and CEO of Nvidia, who resigned yesterday morning amid reports of extramarital affairs, may be daunting—but it is far from unprecedented.
While research shows that companies moving on from a founding CEO face a higher risk of failure or downturn than other CEO transitions, major corporations from Apple to Amazon have successfully managed the loss of a larger-than-life presence at the top of the corporate ladder.
Management experts who have studied such transitions say there are a few key lessons.
Don’t look for a carbon copy of the founder
When Tim Cook replaced legendary Apple founder Steve Jobs in 2011, speculation suggested he might try to replicate Jobs’ style, right down to the signature turtleneck and jeans. However, experts warned against directly replicating Jobs’ leadership and management style.
“A copy of anyone is going to come off looking bad,” Wharton management professor Peter Cappelli said .…