What Tutoring Centers Can Learn from a CEO Swap at Century 21 New Millennium

When a founder hands the keys to a new CEO, small education businesses feel the tremor—here's how tutoring centers can make the ground steady.

Leadership change is one of the top anxieties for tutoring center owners, teachers, and parents: Who will keep teaching standards high? Will pricing change? Will trusted tutors leave? The recent CEO transition at Century 21 New Millennium—where co‑founder Todd Hetherington stepped into a newly created chairman role while Kim Harris Campbell took the CEO reins—offers a compact case study for education entrepreneurs navigating a similar handoff. In 2026, with accelerating consolidation, planned, transparent succession is no longer optional—it’s strategic.

Why tutoring centers must treat succession as strategy in 2026

Small tutoring businesses traditionally think of succession as an eventuality: a sale, retirement, burnout. That mindset creates risky, ad hoc transitions—exactly the moments when client trust and staff morale are most fragile. Today’s market dynamics raise the stakes:

• Investor interest and consolidation in learning services accelerated through 2024–2025, increasing buyer scrutiny of leadership continuity.
• AI-enabled tutoring tools and hybrid delivery models (remote + in‑person) require leaders who can integrate tech, maintain pedagogical quality, and manage change.
• Parents and schools demand transparent outcomes; regulators and funders ask for robust governance and data privacy practices.

In that environment, a smooth CEO handoff signals stability and unlocks growth opportunities. The Century 21 New Millennium move—promoting an external executive while retaining the founder in a governance chair—illustrates three principles any tutoring center can adopt: lead early, govern wisely, and preserve culture deliberately.

What happened at Century 21 New Millennium (briefly)

In late 2025, Century 21 New Millennium named Kim Harris Campbell as CEO of the brokerage and its parent company, NM Real Estate Services. Co‑founder Todd Hetherington stepped down from day‑to‑day leadership to become chairman of a newly formed board that also includes former president Mary Lynn Stone and an external CEO, Tara Brown of Peerage Realty Partners. Hetherington emphasized his ongoing commitment to the company in a public statement:

“I’ve been incredibly fortunate to build this company alongside exceptional agents and leaders. While my role is changing, my commitment to NM and its people is not. Serving as chairman allows me to stay actively involved and support Kim as she leads the company.”

This controlled transfer—external CEO hire + founder‑chairman + new board—creates governance capacity and preserves institutional memory. Applied to a tutoring center, the pattern becomes a practical roadmap.

Actionable succession playbook for tutoring centers

Below is a concrete, tested playbook you can start implementing today. Each step includes the “why,” the “how,” and quick tools you can adapt.

1. Start with a written succession policy

Why: A formal policy removes ambiguity and sets expectations for staff, parents, and partners. How: Draft a short policy covering anticipated scenarios (planned retirement, sudden exit, sale), decision authority, and timelines. Tools: 1–2 page policy template with roles and an emergency interim leader protocol.

2. Create a transitional governance structure—an advisory board

Why: Small businesses often lack independent oversight. An advisory board provides perspective, accountability, and credibility to clients and lenders. How: Assemble 3–7 advisors with complementary skills: a former school administrator (education credibility), a CPA or CFO (financial oversight), a local entrepreneur (growth/partnerships), and a parent representative (customer voice).

• Set a one‑page charter: purpose, meeting cadence (quarterly), decision boundaries (non‑binding advice vs. delegated authority).
• Compensate with small stipends or equity options—realistic for small centers—and offer clear term limits (2–3 years) to refresh expertise.

3. Design a phased CEO handoff with measurable milestones

Why: Immediate, total transfer can create service disruption. How: Structure overlap: 30/60/90 day intensive handoff; 6–12 month governance review. Milestones might include:

• 30 days: All core staff introductions and operational walkthroughs; access to key systems granted; mutually agreed top 3 priorities documented.
• 90 days: First operational changes implemented with founder in advisory role; first community (parents/tutors) Q&A led jointly.
• 6–12 months: Strategic plan refresh and KPI baseline alignment (student outcomes, retention, tutor satisfaction, revenue per student).

4. Institutionalize knowledge transfer (not just files)

Why: Critical knowledge lives in people. How: Combine documentation with shadowing and recorded walkthroughs.

• Operational playbook: key processes (onboarding tutors, scheduling, billing, progress reporting).
• Client history files: high touch clients, scholarships, special accommodations, local school relationships.
• Monthly recorded “founder hour” sessions for the first 6 months where the founder answers questions and shares stories that reflect company values.

5. Preserve culture through rituals and visible continuity

Why: Culture loss is the primary reason clients and tutors defect after leadership change. How: Make culture explicit and visible.

• Codify core values into onboarding checklists and performance reviews.
• Keep signature rituals (e.g., end‑of‑term showcases, tutor appreciation week) intact for at least 12 months post‑handoff.
• Empower a culture steward—an internal leader (director of programs or HR) who owns culture metrics and rituals.

Governance: What to copy from Century 21’s approach

The Century 21 New Millennium model offers elements tutoring centers can scale:

• New board formation: Moving founders from operational roles into a governance position retains institutional memory while enabling new operational leadership.
• External expertise: Adding an external CEO (Tara Brown) to the board brought a fresh industry perspective—tutoring centers should similarly recruit advisors with experience scaling education businesses.
• Public commitment: Clear communication that founders remain committed reduces client uncertainty.

For a tutoring center, a small governing board or advisory council can play the same role: oversee strategy, keep management accountable, and reassure parents and partners.

Checklist: Legal, financial, and operational items to handle before a handoff

1. Update legal documents: operating agreements, bylaws, power of attorney, and well‑defined roles for board/advisory members. Consider estate planning tools when clarifying roles and post‑exit arrangements (see estate planning software options).
2. Clarify ownership transitions: buy‑sell agreements, valuation method, and vesting schedules if equity is shared with managers.
3. Secure financing lines or liquidity plans to manage transitional costs (search costs, recruitment, temporary consulting) and review small‑business tax workflows (tax automation strategies).
4. Audit data and privacy compliance: ensure student records comply with FERPA/COPPA and local regulations, particularly when new systems or vendors are introduced.
5. Align HR: update employment contracts, non‑compete and non‑solicit clauses where enforceable, and retention incentives for key tutors.

Navigating common pitfalls and starter mitigations

Transitions often fail for predictable reasons. Below are common pitfalls and practical mitigations a tutoring center can implement immediately.

Pitfall: Founder exits too quickly

Mitigation: Require a minimum overlap period (3–6 months) and an advisory role with scheduled office hours—publicize this to reassure families and staff.

Pitfall: New CEO lacks education credibility

Mitigation: Prioritize candidates with demonstrable experience in learning services or appoint an experienced education director to complement business leadership.

Pitfall: Clients hear inconsistent messages

Mitigation: Centralize communications. Use a single, transparent announcement that outlines the plan, introduces new leadership, and provides a clear contact for concerns.

Pitfall: Cultural drift after leadership change

Mitigation: Keep signature programs unchanged for at least one academic year unless stakeholders agree to change. Measure culture using quarterly pulse surveys for tutors and parents.

Metrics that matter during and after a handoff

Tie the transition to measurable indicators so stakeholders can track continuity. Focus on:

• Client retention rate (monthly cohort retention)
• Tutor retention and utilization (turnover and fill rates)
• Student progress outcomes (pre/post assessments, grade improvements)
• Net promoter score (NPS) or parent satisfaction
• Operational KPIs ( billing cycle time, average session fulfillment)

Report these metrics to the advisory board quarterly and share a simplified dashboard with staff and families to build trust.

Future‑proofing succession: 2026 strategies

Looking forward, tutoring centers should plan for technological and market shifts that make leadership continuity even more critical.

1. Build leadership competency in digital & data literacy

AI and learning analytics are now central to personalized tutoring. Ensure successors are comfortable with vendor evaluation, data ethics, and how to use analytics to improve learning outcomes.

2. Institutionalize remote leadership readiness

Hybrid delivery increases complexity. Leaders must manage distributed teams, asynchronous scheduling, and parent communications across channels; consider hiring with distributed recruiting practices in mind (distributed recruiting squads).

3. Embed measurable learning outcomes in governance

Boards and advisors in 2026 expect outcome‑based evidence. Make a baseline assessment program part of your succession plan so leadership is accountable for learning gains.

Small case mapping: How a 10‑center tutoring chain could apply the model

Imagine a regional tutoring chain with 10 centers and 80 tutors. The founder wants to step back but fears losing local relationships. A scaled application of the Century 21 pattern would look like:

• Hire or promote a COO/CEO with operational scaling experience (external hire is fine) while the founder takes a chairman role on a new advisory board.
• Form an advisory board of three members: an educator, a local business leader, and a parent rep.
• Implement a 6‑month overlap with recorded sessions and a shared 90‑day priority plan (focus on tutor retention, curriculum fidelity, and parent communication).
• Use a pilot center to test any operational changes; keep the other centers on existing routines during the pilot.

Real‑world tips from experienced education leaders

Based on interviews with operators and governance experts, these practical tips reduce friction:

• Hold a “Leadership Week” where the new CEO shadows student sessions and publicizes learnings.
• Offer retention bonuses that vest over 12–18 months to key tutors to prevent turnover during the transition.
• Host town halls with parents and partner schools in the first 60 days to surface concerns early.
• Document “non‑negotiables” for pedagogy and service standards and include them in vendor and partner contracts.

Final checklist: 12 steps to a confident leadership transition

1. Draft a written succession policy.
2. Create an advisory board with a clear charter.
3. Define the new CEO role and overlap timeline.
4. Complete legal and financial housekeeping (contracts, buy‑sell agreement).
5. Document operational playbooks and record founder walkthroughs.
6. Set 30/90/180 day milestones and KPIs.
7. Publish a transparent communications plan for staff, parents, and partners.
8. Implement retention incentives for key tutors.
9. Run a pilot for any major operational change before center‑wide rollout.
10. Measure student outcomes and share results with the advisory board.
11. Keep signature cultural rituals in place for at least one year.
12. Schedule quarterly governance reviews and adjust the plan as needed.

Conclusion: Turn succession into a competitive advantage

Century 21 New Millennium’s CEO handoff shows what’s possible when founders choose governance over disappearance and leadership over isolation. For tutoring centers and small education businesses, a deliberately managed succession—backed by an advisory board, clear metrics, and culture stewardship—turns a potential point of risk into an inflection point for growth. In 2026, families and funders are looking for continuity, evidence, and leadership that understands both pedagogy and technology. By applying the practical steps above, your tutoring center can preserve what parents and tutors value most and emerge from the transition stronger.

Call to action

Ready to design your handoff? Download our free Succession Checklist for Tutoring Centers and a sample advisory board charter (visit tutors.news/succession or contact our editorial team). If you prefer hands‑on help, book a 30‑minute strategy review with our small‑business education advisors to tailor a transition plan for your center.

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