This paper investigates how CEO succession, a major strategic event, affects the composition and functioning of the top management team (TMT). Based on a larger study of Canadian TMTs, this paper looks at CEO succession events in three different firms. In our investigation of what may be going on in the so-called “black box” at the top of the organization, we have followed the path of a number of relatively recent qualitative studies that have allowed us to enlarge our understanding of top management team dynamics. Our fieldwork consisted of the collection of primary data through interviews of CEOs and top executives of Canadian firms; this was supplemented by the consultation of publicly available secondary data (annual reports, business journal articles, and company press releases intended for investors). The interview transcripts were coded and analyzed using the N’Vivo qualitative analysis software. Coding was emergent but partly guided by the themes underlying the data collection. Intra-case and inter-case analyses were carried out for these three succession events. Results show that whether the succession was a routine or a non-routine event, whether the successor was an insider or an outsider, whether a change in corporate strategy and an organizational restructuring took place or not, in all cases CEO succession led to significant changes in TMT composition (executive turnover, team size and structural form) and triggered important changes in the way the team functioned (amount of individual versus collective work, degree of interdependence and level of coordination). The case analyses suggest that these changes may be explained by two major factors having to do with the CEOs’ characteristics: their interest in teamwork and in daily operations. Of course, this applies to the three cases (and 7 CEOs) that we studied and our methodology greatly limits our ability to generalize. Nonetheless, if further studies confirm our findings, this could constitute an interesting theoretical contribution to the field of TMT and succession research, clearly emphasizing the influence of the CEO on the composition and functioning of the TMT. It might also serve as a basis to explain some contradictory results from quantitative studies. We finally draw implications in term of managerial contributions for CEOs and boards. Our study indicate that five out of seven CEOs paid lip-service to teamwork, minimizing consultations, restricting information flows to their top fellow team members, and ultimately making the final decision alone. Although these CEOs were mostly excellent decision makers, the lack of a truly collaborative process still leaves their firms vulnerable, as illustrated by one case. A too autocratic style of leadership might be increasingly ill-suited for today’s complex business environment where firms must make the most of all their top-team talent.
