Outsider CEO v/s Insider CEO

Outsider CEO v/s Insider CEO Well-run companies like to promote from within. They view talent as a strategic asset and have robust succession planning and career development plans across the breadth of their organization.

Dysfunctional companies hire outsider CEOs to head off disaster. Sure, outsiders may bring a fresh perspective, but they have more risk. Onboarding to a new company and organizational culture takes time. This implies that outsider CEOs may not add full value for several months, or even years.

It’s rare for an internal candidate to fix complex messes that a company might be in. How could anyone, who tolerated the company’s strategic missteps and operational flaws for the past several years, quickly see the company with fresh eyes and pronounce, “Enough already! Let’s change course.”

One study concluded that insider CEOs tend to outperform outsider CEOs.

Posted in Management and Leadership

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