Is the best leader for your company the one who’s already been there? There’s been a surprising trend in the workplace: first, the rise of the “boomerang” employee—but now there’s the “boomerang” executive. These are former leaders who, after gaining experience elsewhere, return to their previous companies to take on new C-suite roles.
According to new research, more than one-quarter of “new” hires are actually boomerang employees. The trend represents both an opportunity and a challenge for organizations in terms of leadership succession, strategic growth, and company culture.
Why Are Executives Coming Back?
Who doesn’t love a great comeback story? Boomerang executives are drawn back for several reasons:
- Unfinished Business: Many leaders feel a deep connection to their former companies, driven by a sense of purpose or projects left incomplete.
- Legacy Protection: Returning can offer a chance to safeguard or reshape the legacy they left behind.
- Cultural Fit: Familiarity with the company’s culture, values, and internal dynamics makes the transition smoother than starting fresh elsewhere.
- Strategic Opportunities: Sometimes, the grass isn’t greener elsewhere. When new roles don’t meet expectations, returning to a known environment—often with a promotion or broader scope—becomes appealing.
The Benefits of Boomerang Executives
Boards have several reasons for bringing back a former leader—in many cases, these are iconic figures. A return can offer several strategic advantages to companies, too:
- Faster Ramp-Up Time: They already know the company’s operations, culture, and key stakeholders. They can hit the ground running.
- Fresh Perspectives: After gaining experience elsewhere, they return with new insights, expanded networks, and innovative strategies.
- Stronger Leadership: Their previous tenure typically fosters confidence, often with a renewed focus and refined leadership style.
Potential Pitfalls to Watch Out For
Rehiring a former executive isn’t without risks. After all, there was a reason you parted ways earlier. Consider:
- Resistance from Current Teams: Existing leadership may feel overshadowed or undervalued by the return of a former boss.
- Complacency: There’s a risk that returning leaders rely too heavily on past strategies that simply aren’t effective anymore.
- Cultural Mismatch: Companies evolve. A leader who fit well before may struggle to adapt to new dynamics.
Best Practices for Welcoming Back Boomerang Executives
Welcoming back a former executive should involve making sure they’re set up for success in a company that may have evolved since their last tenure. Make the most of the return—approach the rehire with intentionality, clear expectations, and a strategy that fosters both alignment and growth.
- Assess Fit Beyond Familiarity: Don’t rehire simply because someone was effective in the past. Evaluate whether their current skills and leadership style align with the company’s present and future needs.
- Clarify Expectations: Make sure both the organization and the returning executive understand how the role has evolved. Set clear goals and performance metrics.
- Reintegrate Thoughtfully: It’s smart to develop a tailored onboarding plan, even for returning leaders. This helps them acclimate to changes since their departure and fosters alignment with current leadership.
- Communicate Transparently: The most seamless transitions start with open communication. Address the rehire openly with employees. Highlight the value the boomerang executive brings and how their return supports the company’s vision.
- Balance Leadership Dynamics: Consider the impact on the broader leadership team. Engage key stakeholders early to ensure buy-in and mitigate potential friction.
Boomerang CEO Case Studies
High-profile examples like Steve Jobs (Apple), Bob Iger (Disney), and Howard Schultz (Starbucks) illustrate both the promise and pitfalls of boomerang CEOs. While Jobs’ return marked a turning point for Apple, studies indicate that boomerang CEOs, on average, underperform compared to first-time leaders.
- Why It Works: Familiarity with company culture, established relationships with the board, and deep institutional knowledge can stabilize a company during turbulent times.
- Why It Fails: Over-reliance on past strategies, difficulty adapting to new business landscapes, and potential resistance from teams who preferred previous leadership.
A Better Approach: Proactive Succession Planning
Succession planning should be proactive and ongoing. Companies should begin the process three to five years before a CEO’s planned departure, treating it like a funnel—starting broadly with leadership development initiatives and narrowing over time to identify specific candidates.
Early on, succession planning should focus on developing a robust leadership pipeline. This includes not just identifying potential internal successors but also considering external candidates and even former executives who could return in new roles. Cross-functional training is critical to prepare leaders to handle diverse challenges, ensuring they complement each other’s strengths and weaknesses.
Boards should hold annual succession planning discussions to reassess needs as business conditions evolve. Semiannual or quarterly check-ins with potential successors can provide valuable feedback and development opportunities without creating undue competition. When evaluating candidates, companies should go beyond past performance, benchmarking them against external talent and simulating real-world challenges they’ll face in the role.
The Role of Interim Executives in the Boomerang Equation
Many times, the best approach isn’t a permanent rehire but an interim solution. M&A Executive Search connects top businesses with experienced interim executives who can:
- Stabilize Leadership: During transitions, an interim executive can provide stability while the organization evaluates long-term needs.
- Bridge Gaps: If a boomerang executive is being considered, an interim leader can manage operations, allowing time for thoughtful decision-making.
- Inject Fresh Perspective: Interim leaders offer unbiased insights, helping identify whether bringing back a former executive is the right move.
- Facilitate Succession Planning: Interim executives can help develop and mentor internal candidates, strengthening the leadership pipeline for future success.
Build a Stronger Leadership Team With the Help of M&A Executive Search
Whether you’re considering the return of a former leader or need an interim executive to guide your organization forward, M&A Executive Search is here to help. Contact us today to find the right leadership solution for your company’s future.
