How long should a CEO get to turn around a struggling company?

Nearly two years after Elliott Hill returned to Nike as CEO, his tenure raises a question that eventually confronts almost every leader handed a struggling business. How much time should someone get to prove that a turnaround is working?

Executives brought in to revive a company, division, or function often inherit problems that accumulated over years while facing pressure to show improvement within quarters. Hill inherited a Nike in 2024 struggling with weakened retailer relationships, excess inventory, slowing innovation, and declining cultural relevance. He has restored wholesale growth and strengthened performance running. Yet Nike Direct and digital sales have remained weak, China continues to struggle, and the stock has lost the enthusiasm that greeted his appointment.

Research on corporate transformations suggests that expecting an immediate recovery is unrealistic. McKinsey offers some indication of how slowly the economics of a transformation can emerge. In one survey, respondents reported that roughly half of a transformation’s value was realized in the first 18 months, with the remainder coming later.

Spencer Stuart’s research offers a more detailed timeline for judging a CEO’s progress. The........

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