Succession is messy. Honestly, it’s usually a disaster. We see it in the headlines every time a titan of industry tries to step away and then, predictably, claws their way back into the CEO chair six months later because they couldn't actually let go. When a leader says i pass the baton, they are invoking one of the most stressful, high-stakes metaphors in human history. It’s not just a polite way of saying "I'm retiring." It is a specific, mechanical handoff where the most dangerous moment is the "exchange zone"—that twenty-meter stretch where both people are running at full speed, but only one is holding the wood.
In track and field, the 4x100m relay isn't won by the fastest four runners. It’s won by the team that doesn't drop the stick. In business, it's the same thing. Look at the data from the Harvard Business Review or the Corporate Executive Board. Companies that fail during a leadership transition lose, on average, billions in market capitalization within the first year. It’s brutal. This isn't about being nice. It's about kinetic energy.
The Psychology of the Handoff
Why is it so hard? People hate losing power. Most CEOs view their identity as inseparable from their title. When the time comes to actually say i pass the baton, the ego gets in the way. You've probably seen this in your own office. A manager "promotes" someone but then micromanages every decision they make for the next year. That's not a handoff. That's just a longer leash.
Real leadership transition requires the "blind handoff" technique. In sprinting, the runner receiving the baton doesn't look back. They reach their hand behind them, palm open, and they trust. They trust that the person behind them is going to put the baton exactly where it needs to be. If the receiver looks back, they slow down. If the giver doesn't let go, they both trip.
The Bob Iger and Howard Schultz Problem
We have to talk about the "boomerang" effect. This is the opposite of a clean baton pass. Look at Disney. Bob Iger famously handed the reins to Bob Chapek in 2020. He said the words. He did the press release. But he stayed on as executive chairman, kept his massive office, and by many accounts, never truly let go of the creative control. Two years later, Chapek was out, and Iger was back.
Then you have Howard Schultz at Starbucks. He’s passed the baton more times than an Olympic veteran, only to keep running back onto the track to grab it again. It creates organizational whiplash. Employees don't know who to follow. Investors get jittery. It's essentially telling the world that your successor isn't capable, which, if you picked them, is a direct reflection on your own failure as a leader.
How to Actually Pass the Baton Without Tripping
So, how do you do it right? It starts with the "Exchange Zone."
In a real relay, the runner who is finishing their leg doesn't just stop. They have to keep running at full speed even after the baton is gone to ensure the next person has the momentum. Most business leaders think the day they retire is the day they stop. Wrong. You have to be sprinting at 100% until the very second the other person has a firm grip.
- Define the "Quiet Period." Once the move is made, the former leader needs to vanish for a bit. No "checking in." No "just making sure everything's okay."
- Transfer the Relationships, Not Just the Tasks. The most valuable thing a leader has is their network. If you don't introduce your successor to your biggest clients and partners as "the new boss" (and mean it), you haven't passed anything.
- The Shadow Phase. This should happen before the public announcement. Let the successor lead meetings while you sit in the back and say nothing. It's harder than it sounds.
The Cultural Impact of the Phrase
Interestingly, i pass the baton has migrated from the track and the boardroom into our everyday social lexicon. We use it when we’re tired. We use it when we’re handing off a volunteer project at our kid's school. But the weight of the phrase remains. It implies a legacy. You aren't just quitting; you're ensuring that the work continues.
There's a reason why the phrase resonates so deeply in family businesses. According to the Family Business Institute, only about 30% of family-owned businesses survive into the second generation. A measly 12% make it to the third. Why? Because the "passing of the baton" is often handled with emotion rather than strategy. The founder sees the business as a child, not a relay. They hold on too tight, or they throw the baton at a successor who isn't even looking.
Lessons from the 4x100m Disasters
Think about the US Men’s Olympic relay teams over the last twenty years. On paper, they are usually the fastest in the world. Yet, they have a haunting history of disqualifications and dropped batons. Why? Overconfidence. Lack of practice on the transition. They think their individual speed will save them.
In a company, "speed" is your revenue or your product. But the transition is the "exchange." If you don't practice the handoff—if you don't have a formal succession plan that has been vetted and stress-tested—your individual talent won't matter when the stick hits the dirt.
What Most People Get Wrong About Timing
Most people wait until they are burnt out to say i pass the baton. That is the worst possible time. If you are exhausted, you are slowing down. If you're slowing down, the person receiving the baton has to slow down to meet you, and the whole organization loses its competitive edge.
📖 Related: Meyer Orbach Net Worth: Why the Real Estate Titan Still Matters in 2026
The best time to pass the baton is when you are at your peak. You want to hand over a machine that is humming, not one that is smoking and rattling. It takes an incredible amount of humility to walk away when things are going perfectly. But that is exactly what greatness looks like. It’s what Anne Mulcahy did at Xerox. She took over a company on the brink of bankruptcy, turned it around, and then handed it off to Ursula Burns in a move that was widely praised for its smoothness.
Moving Forward: Your Actionable Handoff Strategy
If you're in a position where you're thinking about moving on—whether it's a project, a department, or an entire company—you need a literal checklist. Not a "corporate" one, but a functional one.
First, identify your "Outgoing Velocity." Are you still pushing hard? If you’ve already checked out mentally, you’ve already dropped the baton; you just haven't realized it yet. Re-engage for the final 10% of your tenure.
Second, establish the "Veto-Free Zone." Give your successor a specific area where they have 100% decision-making power while you are still there. Watch how they handle it. Don't correct them unless the building is literally on fire. This builds their "grip" on the baton.
✨ Don't miss: Universal Index Life Insurance Pros and Cons: What Most People Get Wrong
Third, communicate the transition to your stakeholders using clear, definitive language. Use the phrase. Tell them, "i pass the baton to [Name] because they are ready, and I am stepping off the track." No ambiguity. No "consultant" roles that last forever.
Succession isn't a single event; it's a process of intentional deceleration for one person and intentional acceleration for another. If you do it right, the spectator—the customer, the market, the employee—barely notices the change in pace. They just see the team winning.