Why leaders have a hard time knowing when to leave

Departing too soon can lead to deep regret; staying too long can ruin a hard-won legacy

- Beth Kowitt

In July, US President Joe Biden transformed himself from the Democratic Party's biggest liability into its biggest hero.

By threatening to hang around too long, he'd walked up to the very edge of unravelling much of the goodwill and respect he'd earned from more than 50 years of service to the American people.

By standing down, he redefined himself overnight as an exemplar of patriotism. "I revere this office, but I love my country more," he said in an Oval Office address.

The episode showcased one of the hardest things that comes with having power: Knowing when to give it up. It can take decades of sacrifice to get to the very top in Mr Biden's case, three runs at the White House.

Departing too soon can result in deep regret over unfinished business. Staying too long risks destroying a hard-won legacy.

There's an art to knowing when to step aside, one that in the business world is often navigated amid the comfort and secrecy of boardrooms or corner offices and ironed out alongside the counsel of discreet aides and confidants.

That's not how Washington works. Mr Biden's decision was the highest-stakes example in memory of how this calculus can unfold, but it was also the most public. It's a vivid reminder that those who make it to the top buoyed by a long track record of making tough judgment calls - so often get it wrong when it comes to their own tenure.

The first succession mistake often arises when a leader blows past a self-imposed expiration date. Setting a retirement date publicly isn't the problem; in fact, some would say that's the power move.

"A wise chief executive officer will set his or her own time limit,” says Mr Bill George, an executive fellow at Harvard Business School and former CEO of Medtronic.

"They shouldn't wait to be pushed out." But when a CEO sets a date and then ignores it, key talent waiting in the wings get frustrated and look elsewhere for their next role.