Leaders Who Stop Leading: A CEO’s Dilemma

Could the very leaders who once drove your company's success now be holding it back?

This question has stayed with me since a delayed layover in Atlanta on my way to a client in Salt Lake City.

I found a seat at the bar and struck up a conversation with a distinguished gentleman—sharp, well-dressed, exuding executive presence.

As we talked, I discovered that I was speaking with a retired CEO. This man had decades of corporate leadership experience.

I shared some of my background—how I’d found my way into executive search, and my passion for helping growth companies build capable, future-focused teams.

One key reflection stood out: When should CEOs act when strong leaders start to lose their drive?

What he shared with me resonated deeply, revealing a dilemma that many CEOs face yet struggle to act upon.

He shared how an executive who once drove the company’s growth had grown stale, his enthusiasm waning, and leadership reduced to a formality. His team lost inspiration, and meetings became distractions.

“Everyone could feel it—it wasn’t catastrophic, but it was slowly eroding confidence, wasting time, and organizational energy. It had even begun to erode my credibility with others on my leadership team.”

Pausing thoughtfully, he glanced down at his glass.

He admitted, “I didn’t make a change. Corporate politics made it feel impossible, and I convinced myself that avoiding the problem might make it go away. But it only damaged morale and threatened our strategy.”

His hesitation is a common challenge, one that many leaders face as they navigate the delicate balance of leadership politics and team dynamics.

The Slow Decline: Recognizing When Leaders Lose Their Edge

Leaders who once drove growth can gradually lose their edge—a subtle shift that often goes unnoticed until it’s too late.

"I should have known," the CEO reflected, his brow furrowed. "That leader wasn’t failing dramatically, but he also wasn’t growing and evolving with the company. And when I hesitated to make a change, I put the entire company at risk."

It’s a common scenario. As Peter Drucker once said, some leadership choices are “neither a success nor a failure.”

These situations can be the most dangerous, as they allow leaders to slip into complacency while slowly eroding the company’s momentum.

Waiting for a crisis to justify action isn’t a strategy.

Ignoring complacency in your leadership team leaves your company vulnerable to missed opportunities. Yet, even knowing this, many leaders hesitate to act, fearing the fallout. This is where the challenge of accountability comes in.

Moral: A leader’s true value lies in their ability to evolve with the company—not in how long they’ve been there.?

The Cost of Inaction: Why Leaders Hesitate to Act

His story isn’t unique—many leaders hesitate to act, fearing the fallout.

“I knew I had to act,” he admitted, “but I worried about how it would look. My board and peers didn’t see what I saw—the strain and the cracks starting to show.”

This is a fear many CEOs face. They believe their decisions must align with what the board or peers will approve. But these external influences don’t carry the same responsibility for the company’s success that you do.

"It is not only what we do, but also what we do not do, for which we are accountable." Moliere

Leaders aren't paid to maintain comfort but to make the tough decisions that drive the company forward.

As this CEO learned, doing nothing can be the most damaging decision of all.

Moral: Choosing not to act is still making a choice—often the wrong one.?

Time for Coaching or Change?

Not every leadership issue requires replacement—sometimes it’s about reigniting potential.

The CEO nodded thoughtfully as we discussed this. “In hindsight,” he reflected, “maybe I should have coached him. He wasn’t a bad leader, just complacent.”

Leadership coaching can revitalize stagnant leaders, equipping them with the tools and fresh perspective needed to grow.

I explained to the CEO how an external coach—someone skilled in helping leaders uncover blind spots and develop fresh strategies—can drive greater performance without needing to replace a key leader.

“Sometimes,” the CEO added, “reigniting a leader’s focus can quickly solve the problem while maintaining all the valuable history and knowledge they bring to the table.”

However, not every leader is open to coaching.

If they’ve lost the desire to learn and grow, it’s time to make a change. Here are some guidelines for determining when to coach and when to replace:

Coaching is effective when:

·???????? They are open to feedback and willing to grow.

·???????? They have the capacity to reignite their passion for their role.

·???????? The organization can benefit from their historical knowledge and relationships.

Replacement is necessary when:

·???????? They’ve lost the desire to learn and grow.

·???????? Repeated coaching or intervention has failed.

·???????? Their resistance to change is impacting team performance and growth.

The CEO agreed that loyalty and internal politics can’t stand in the way of securing the company’s future.

“Sometimes,” he said, “a fresh perspective is exactly what’s needed to reignite a company’s trajectory.”

Partnering with a recruitment firm that’s invested in your long-term success can help you decide when to coach and when to make a leadership change.?

Final Thoughts: Leading Your Company into the Future

As the conversation wound down, the CEO glanced at his watch.

“The future won’t wait,” he said. “Leaders who create it drive it forward; those who wait get left behind.”

He was right.

Take a hard look at your leadership team today.

Are they driving your company forward, or simply maintaining the status quo?

The world moves too fast for yesterday’s solutions to solve tomorrow’s challenges. Holding onto outdated strategies and leadership practices puts your business at risk of stagnation.

Recognizing when to refresh leadership—or reignite your team—can be the key to thriving.

If this resonates, reassess your leadership today before inertia becomes a liability.

Ready to elevate your leadership team?

Let’s connect to explore how a strategic approach to recruitment and leadership development can secure your company’s future.

Moral: The future belongs to those who shape it, not those who wait for it to happen.

About the Author: Brandon Calhoun is a strategic talent advisor, executive search consultant and leadership coach with over two decades of experience helping organizations leverage recruitment as a Strategic Growth Instrument. By utilizing his ACE Model—Alignment, Comprehensive, Empathy—Brandon transforms search and recruitment into a key driver for long-term business success. As a West Point graduate, combat veteran, and experienced corporate leader, Brandon incorporates unique perspective to a strategic method of aligning top talent with organizational goals.