(FORTUNE Magazine) – The news that Martha Stewart Living Omnimedia is replacing CEO Sharon Patrick with former ABC Entertainment president Susan Lyne stunned a lot of people, but in fact, the company's board had been planning a shakeup for a while. And yes, Martha was in on the recipe. She was not in the boardroom the day the directors voted on the change, and she is forcibly out of the loop because she isn't allowed to discuss business, either on the telephone or with visitors, in prison in West Virginia. But according to people close to Stewart, she began contemplating a new CEO months ago and considered Lyne, who joined the board in June, a possibility. The problem with Patrick? Many considered her a disorganized manager--and felt she was exhausted after two years of turmoil. Plus, Patrick angered Stewart when, in the heat of Martha's criminal trial and conviction, she promoted the notion that Martha Stewart Living Omnimedia could do just fine without Martha in the fold. Lyne, who visited Stewart in prison the week before she took the job, says she came away thinking that Martha "is coming back in full force" in March. (Martha's current gig: She cleans the prison's administration building.) Given Stewart's comeback strategy--including an Apprentice-like prime-time TV show with reality impresario Mark Burnett--Lyne may be a natural fit. Also, Lyne's claim to fame, before her Disney bosses replaced her at ABC in April, was developing the sizzling Desperate Housewives--and that's a group that Martha is eager to win back. -- Patricia Sellers