From One of the Team to Leading the Team: Recalibrating Relationships as CEO

A group of colleagues engages in a collaborative discussion in a modern office setting, where a woman leads the conversation with a document in hand, fostering a positive and productive atmosphere.

Stepping into the CEO role is always a significant transition, but it comes with a unique challenge if you’ve been promoted from within. The people who were once your peers - people you joked with, debated alongside and confided in - are now your direct reports. How you handle this shift in relationships will shape your leadership credibility, team alignment, and ability to deliver.

In our ‘CEO Survival Guide’ we’ve outlined 12 tips that will help you own your first 90 days with confidence and clarity. In this post, we explore the third tip in the series, the calibration of relationships with former peers.

Some new CEOs assume that relationships will naturally adjust or, worse, they ignore the reality that a recalibration needs to happen. Both can undermine their leadership before they’ve had chance to hit their stride. Successful CEOs take intentional steps to reset these relationships early on.

The two mistakes to avoid

As a new CEO promoted from within there are two traps you can fall into. The first is to overcorrect – to distance yourself from former peers as you try to establish authority. The second is to under correct – to try and maintain the same informal dynamics as before. Both approaches can backfire:

“Create too much distance and you risk eroding trust and the relationships you’ve already built. Remain too familiar and your authority doesn’t get fully established. This can create confusion, misalignment and even resentment.”

CEO

The key is to acknowledge the change proactively.  Reset expectations with clarity and respect.

Three messages to land with former peers

1.        Acknowledge the change in dynamic.

You’re now the CEO, everyone knows that. But you mustn’t assume that former peers really know what it means for their relationship with you. A direct conversation is the first step in setting the foundation for a new working dynamic.

Let them know that you value not only your history together but also their expertise and what they bring to the team. At the same time, acknowledge that because your responsibilities have changed, a change in your relationship is also required. Tell them you’d like to talk together about how you can best work together in this new configuration.

By doing this you acknowledge the change (and your expectation of things being different in some way), whilst reassuring them that you still value them and what they bring. Crucially, you open up a space for dialogue around the new way, instead of imposing authority.

"If they're internal, I would probably talk to them about how they're going to be different because people will be treating them the same as they have been as they've come up in the organisation."

HR Director supporting an internally promoted CEO.

2.        Create role clarity.

Some former peers might still expect you to be involved in discussions and decision-making in the way you were before. This might be appropriate at times, but you will need to stay above a lot of topics. Setting clear expectations is empowering for your team, and it will save you from being bogged down.

Remind them that as CEO your role requires a broader perspective. You need them to be empowered in their own authority and leadership, whilst also ensuring that you’re aligned at a strategic level. Invite a discussion about how debate, decision-making and communication needs to evolve between you to allow everyone to be at their best.

This conversation will go a long way towards preventing power struggles, because everyone gets clear on responsibilities from the outset, including who needs to be involved in which conversations. It will help you establish a partnership mindset rather than an experience of division or treading on toes. Perhaps most importantly, it reinforces the part you need to play as CEO while respecting your team members’ autonomy.

3.        Emphasise openness to feedback.

Even with best intentions, there will be bumps in the road. The number one priority is that trust between you and your former peers remains intact. Make it clear that you need to maintain openness and you want them to feel comfortable sharing concerns and feedback with you. If something isn’t working for them, you’d like to be able to address it directly.

Doing this reassures them that you are a CEO who will listen, and who wants to understand their views. Having these conversations can be tricky in practice, but setting the expectation early on is an important symbol that supports a culture of safety and transparency.

Navigating this could require shifts of mindset - both for you as a CEO, and for your team. This doesn’t happen overnight, and ingrained patterns of behaviour can take time to change. This is a good time to engage with an executive coach who can support you. With the right approach, you can lead with confidence, maintain trust, and create a team dynamic that is both strong and aligned for long-term success.

For more tips that will help you own your first 90 days with confidence and clarity, check out our CEO Survival Guide.