Two years ago, when Anne Chow was CEO of AT&T Business, she decided she was done with her career at the company where she had spent 32 years.
But the move didn’t feel like a retirement, she says, since she planned to remain active in the business world. Instead, she calls it a “rewirement”: a new career phase that comes after climbing the corporate ladder and embraces more purpose-driven work.
Chow advises other executives on their rewirements, which she says can be deeply fulfilling, but which also come with pitfalls. Transitioning from a high-powered career to something like board service, teaching, or philanthropy is a significant change, both financially and in terms of personal identity. And this transition looks different for each person.
Here, Chow offers five tips to leaders contemplating their rewirement.
Plan ahead
Successful businesspeople are never just thinking about what’s happening in the moment; they are anticipating what is on the horizon for their organization and their own career.
A lack of planning can also mean that rather than branching out, some people default to staying within their old industries. This can be a particularly difficult situation for executives who were used to being among the most powerful players in the room.
“I’ve seen people who get swirled up in the ecosystem they had left, becoming a consultant or even working for a supplier,” she says “Personally, I don’t think that’s mentally healthy. To me, if you’re going to rewire, you should use the opportunity to reset yourself, not hang on to the glory days of the past.”
Think deeply about your “why”
To avoid continuing in a reduced role in a familiar industry, people should start exploring what their purpose is in this next stage, Chow says.
“Often, people have not thought deeply enough about their why,” she says. “You’ve got to get some clarity around your personal purpose.”
She suggests you start by doing an audit of how you spend your time—both in your day job and in any extracurricular and volunteer activities.
It can be challenging to take this sort of critical eye to our own behaviors, so she recommends hiring an executive coach to help, if that’s an option, or at least talking it through with key mentors and confidants who know you well, both personally and professionally.
Do your homework
Once you have a sense of what will bring you joy in your rewirement, start researching what you will need to do to realize your goals.
For example, Chow says people often announce in a knee-jerk way that they want to serve on a board. “Many people I speak with have no idea what that actually means or the fact that they have to compete for jobs like that,” she says.
“You’ve got to do your homework,” Chow says. “Have you made inroads on what your options are? Most of the time, people answer no because they didn’t have time. So when they’re ready to pull the trigger, they don’t have options. They have ideas, but they don’t have options.”
Be prepared for some big identity shifts
Even if you land in your perfect rewirement role, Chow advises high-achieving professionals to brace themselves for some significant challenges to their sense of self.
“There’s a level of respect, power, and influence that you may have become used to that has been an integral part of your identity,” she says. “When you choose to rewire—or if it’s chosen for you—that goes away. All of a sudden: who are you? That can be a hard landing.”
Chow advises being introspective about this proactively so the transition isn’t too painful. And keep in mind, it’s not only about your title and salary. There are less obvious ways this feeling can sneak up on you.
Take, for example, the super status many executives have on airlines. “There was no monetary value per se, but it helped your professional and personal travel experiences,” she says.
Getting bogged down in administrative tasks that someone else used to take care of can also add to this frustration. For example, if you find yourself spending countless hours struggling to submit expenses, then hiring a part-time administrative assistant may be the right move for you if you can afford to do so.
Don’t ignore the financial realities
It’s crucial that people also think through the financial aspects of rewirement. This entails really understanding where you want to be financially in order to feel comfortable and lead the life you want.
“You have to be very, very candid with yourself and your loved ones who are impacted by your decisions on how much is enough,” she says.
This means being clear eyed about your most significant, required expenses. If you’re under 65, for example, or have children—or aging parents—who are financially dependent on you, your healthcare and caregiving costs may be significant.
“These things must always come first,” Chow says, “and that’s important in the calculus of your rewirement formula.”
You should also think deeply about the lifestyle that you want to maintain.
“For some, that may include a cash component. For some, it may be a desire to have a philanthropic impact on a large scale,” Chow says. “You have to develop clarity around your priorities as you develop your why.”
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By Anne Chow / Kellogg Insight
