The Psychology of Leadership Transfer

Many publicly traded companies face the risk of relying too heavily on the individual abilities of their leaders or founders, who possess outstanding track records and extensive experience. Even with succession plans, these companies often fail to achieve the desired level of success. This is because true leadership transfer is not simply a process of recruiting and appointing new leaders; it requires the emotional maturity of the successor to share power, trust, and opportunities, enabling others to grow so that one day they can achieve the same or even better results.

A common challenge for leaders in giving is not a lack of skills, but the inability to overcome their own internal psychological mechanisms. Therefore, being aware of and understanding these issues will help facilitate smoother giving and reduce internal resistance. For example:

1. Attachment to the self – For executive leaders, their job may not just be about what they “do,” but also what they “are.” Their role and identity are inseparable, leading them to feel that their own value is diminished if others can achieve something, resulting in sadness from being separated from loved ones and a fear of losing their role and importance.
2. Control requirements – Humans tend to protect what they have created with their own hands. Senior leaders often unknowingly fall into this trap, making it difficult to trust or give others opportunities to work. They tend to be overly controlling out of fear of others making mistakes.
3. Expectation of return – People naturally expect reciprocation from giving, such as gratitude and appreciation. Leaders therefore often want successors who can best preserve their legacy, even though in reality, future organizations may require leaders with a completely different set of skills.

Self-development strategies
To be an effective and happy "sharer".

Training the mind to shift its role from "creator and controller" to "facilitator of others' growth" can be done by:

1. Accept impermanence. – Always remind yourself that "every position and every role has an end." Seeing this truth often will make the transition a natural process, not a failure.
2. Separate "ourselves" from "roles.""Practice shifting from 'I am the CEO' to 'I am fulfilling the role of the CEO.' When the role is no longer your identity, stepping down isn't about losing yourself."
3. Reduce preconceived notions about performance. – The work isn't solely ours; the organization's success stems from the team, timing, customers, and society. Understanding these contributing factors gradually lessens the clinging to the idea that "This is my work."
4. Change your perspective from "occupant" to "caretaker". – An organization is not personal property, but something we have the opportunity to care for temporarily, and when the time comes, we pass it on to the next caretaker.
5. Practice giving without expecting anything in return. – Passing on knowledge is a form of "giving" because it involves sharing knowledge, experience, trust, and opportunities without expecting praise or recognition.
6. Cultivate loving-kindness and sympathetic joy. – Metta (loving-kindness) is wanting the recipient to succeed. Mudita (sympathetic joy) is rejoicing when they do better than us. This attitude helps shift from competition to support.
7. Practice equanimity. – It's not about ignoring, but about wisely trusting. After forwarding something, we don't interfere in every aspect. We accept that younger generations may think differently from us; their methods may differ, but that doesn't necessarily mean they are wrong.
8. Create a new identity that is not tied to a specific position. – Before retirement, ask yourself, “Once I no longer hold a position, in what way will I contribute?” The answer might be: teacher, coach, mentor, supporter of the younger generation, writer, thinker, volunteer, etc. When you find new meaning in life, letting go of your old role will happen peacefully.

Psychological self-development helps us better understand the natural workings of our minds, enabling us to manage emotional maturity and consciously address intellectual biases. Buddhist mental training, on the other hand, helps us free ourselves from this natural process, focusing on reducing attachment and gradually diminishing the power of the ego. Although psychology and Buddhism use different language, they share the same goal: enabling leaders to subdue their leadership calmly, effectively, and beneficially for their organizations.

Words of wisdom for leaders. : Letting go of roles, power, control, reputation, and success accumulated throughout a lifetime is not easy. It requires constant self-awareness and a regular reminder that a leader's ultimate success is not being indispensable to the organization, but building an organization that can thrive even after their absence.

The ultimate success of transferring knowledge is not the transfer of power itself, but the wise letting go of the ego, transforming the feeling of "being deprived of power" into "passing on a valuable legacy." When this mission is accomplished, the giver finds joy in seeing their work build upon itself and ensure its longevity.