Every business reaches the point where its founder becomes the biggest blocker of growth. It's time to hand over the reins to someone else and step back.

For the past two years, I have seen this need for my web development company, Markupus. But at the end of 2023, it finally became clear: it was time for him LEAVE from operations and appoint a new CEO.

I had two options: to bring someone new or promote from within. The clock was ticking and the integration of a new face seemed to take time. At the same time, none of our current managers felt quite ready.

However, nurturing leaders from within is our part company culture, which swayed me towards option #2. There were three candidates:

• Candidate A was in charge of operations. This person was my first choice for a CEO. He took over whenever I was away and was good at setting up processes.
• Candidate B was responsible for technology, had been with the company since day one, and was the most knowledgeable about our product.
• Candidate C was in charge of sales and hadn't been with us long so I hadn't seen him in action beyond his usual duties. Honestly, I added it to round out the options.

My gut favored candidate A, but I knew I needed more than my gut instinct. So I hired a professional valuation company to perform a thorough analysis using global methodologies.

After we agreed on the key competencies for assessment, they offered a 3-stage Assessment Center and business interviews to get a clear picture, and that's exactly what we did. So if you're in my shoes and looking to choose a successor, this process can provide some insight. Let's get into it.

Psychometric test

Each candidate completed the questionnaire provided by the developer of the psychometric test. It was just the first phase of the Assessment Centre. Before interviewing everyone in person, the experts needed to know how everyone was “on paper.”

of TRIAL The results describe each candidate's typical behavior, thinking style and ways coping with stress. Reports include leadership styles, preferred team roles, career topics, and so on.

However, no significant conclusions have yet been made: these test results provided experts with further material for analysis. After that, they moved on to other means.

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Business simulations

First, the evaluators provided our potential CEOs with a comprehensive document containing data for analysis. Candidates had little time to study the material and make connections within it. They then presented their findings to a mock board, which tested their mettle analyze the information.

This exercise wasn't just about number crunching; was to see how candidates formed hypotheses and made decisions based on their analyses.

The second business simulation was a group discussion. As point A, the candidates had a limited budget and many company needs. They had to fight for the resources of their departments, but also consider the overall good of the company.

Here, the assessment team observed how candidates influenced others, who took the lead and who stood firm for their department's interests.

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Competency interview

The final stage of the Assessment Center was the individual competency interview. This was an important step to confirm or challenge the competencies that the experts observed during the simulations.

During these interviews, the assessor mostly asked the candidates to give examples from their previous business practice: for example, a particular problem they faced and how they solved it.

Business interview

The competency interview I mentioned was based on the candidates' past performance, but the business interview put them in hypothetical situations.

For example, the business consultant asked what the candidates would do if the current CEO left without explanation and asked them to take care of the company. What would be their first steps? What would their strategy look like?

The feedback here was also important. Does the candidate have an immediate answer, or are they confused? Everything was considered.

After all these stages, the evaluation team proceeded to analyze the massive number of results for each of the candidates. After a few weeks, they came back with the results – to my surprise.

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The candidate I least expected turned out to be best suited for the role of CEO

While all candidates had strong soft skills, candidate C excelled in competencies such as strategic thinking and adaptability to change. His leadership potential also turned out to be higher than others. Furthermore, we shared a mutual understanding of running the company and he brought a proactive approach to the team's routine.

While he still had a lot to learn, candidate C was our clear choice at the time.

And what happened to candidate A, whom I favored? According to the assessment, his ideal role would involve working with data rather than leadership. Eventually, he changed his career path and went into a different field.

After receiving that report, I spent a month deciding how to move forward. But after some thought, I officially shot myself on my birthday – February 29th. A rare gift for a rare occasion!

On paper, I'm still a CEO, but in practice, all decisions are made by the newly appointed CBDO, Candidate C, aka our former sales manager, along with our Head of Development, Candidate B.

My role now is more of an advisor. I dedicate one day a week to working with the team and addressing any issues or questions that arise. For the rest of the week, I will focus on my other ventures, which will give me more time to pursue new opportunities.

After being in charge of everything for nine years, it was strange to step back and help others figure things out.

But guess what? It's been almost five months since we decided and the business hasn't taken off! It's going well. Most importantly, we have created a good foundation for future growth.

So my main recommendation here is: if you are doing something for the first time in your business, always hire professionals to help you. Sometimes, this will give unexpected but more promising results.