Leadership succession and organizational success: when do new chief executives make a difference?

When do new chief executives in the public sector make a difference to organizational performance? Theory suggests that executive succession has both adaptive and disruptive effects on public organizations, and the balance between these is likely to depend on the performance of the organization in the period before a new top manager takes office. We test this proposition on several years of data on all 148 English principal local authorities. Our results suggest that chief executive succession makes a difference to performance, and that succession has a positive effect where prior performance is low, but a negative effect where it is high. © 2011 The authors.