Replacing a member of your leadership team is one of the most difficult decisions an organization can make. A strong leader drives strategy, culture, and performance, while an ineffective leader can stall growth, erode morale, and cost far more than their salary. Because leadership changes can be risky and disruptive, companies often wait too long to act.
So how do you know when it’s time to make a change? At Acumen Executive Search, we’ve seen that organizations often wait too long to make a change—sometimes out of loyalty, sometimes out of fear of disruption. The key is knowing how to recognize the signs that it’s time for a new leader, and acting decisively when the evidence is clear. Here are the key signals that suggest it is time to replace someone on your leadership team.
Consistently Missing Performance Goals
Everyone has off quarters, but persistent underperformance is a red flag. If a leader is continually falling short on revenue targets, operational metrics, or project delivery, even with coaching and support, it signals they may not be the right fit for the role.
Loss of Trust and Credibility
In order to inspire and influence, leaders rely on credibility. If their team or the board no longer trusts a leader’s judgment or integrity, they will fail to lead effectively. Depending on how much confidence has been eroded, it may be irreversible and warrant replacement.
Resistance to Change
Change is constant and a necessity in modern businesses. Whether it’s adopting new technology, transforming the culture, or shifting customer demands, a leader who resists change can become a bottleneck to the entire organization.
Toxic Impact on Culture
A single leader can influence employee morale, engagement, and turnover. If a leader’s style causes fear, disengagement, or attrition, the damage can spread throughout the organization. A toxic cultural impact is one of the strongest signs that it’s time to take action.
Failure to Develop Others
Great leaders build other leaders. If a manager fails to mentor, coach, or elevate team members, they may be limiting your organization’s future potential.
Misalignment with Values and Vision
Just because someone is a high performer doesn’t mean they belong on your leadership team if they don’t represent your organization’s mission and values. This can create friction, confusion, and be a risk to the organization’s reputation.
You’ve Already Tried Everything Else
Sometimes, executive coaching, training, or realigning the role can improve the situation. But if these actions have failed to resolve the issues, it may be a sign that the situation cannot be resolved within the current leadership structure.
Making the Transition Thoughtfully
Replacing a leader doesn’t necessarily mean failure. Sometimes an executive is the right fit for one stage of a company but not the next. The key is to act decisively and thoughtfully:
- Communicate with transparency to your leadership team and stakeholders.
- Honor the leader’s contributions even as you acknowledge the need for change.
- Prepare for the transition with succession planning or an intentional executive search strategy.
The Bottom Line
The cost of keeping the wrong leader is far greater than the short-term disruption of making a change. By watching for these warning signs, organizations can make leadership transitions from a place of strategy rather than crisis. At Acumen Executive Search, we specialize in helping organizations identify and attract leaders who not only deliver results but also align with your mission, values, and goals. If you’re questioning whether it’s time for a change, we can help you explore your options. Whether you need a CFO, CEO, President, VP, Director-level, or C-level transformational leader, our team helps you hire with confidence. We hire for good.