If your CEO is leaving your company, or you are undertaking succession planning for the role, it’s important to put some thought and effort into where you should look for your new CEO. According to one expert, the “company’s momentum plays a pivotal role in answering the question.” In other words, what’s the trajectory of your company currently, and does that need to change?
Three possible scenarios are as follows:
Companies with a positive growth trend
These companies tend to have good stability, a strong corporate culture, and it may not be wise to upset the apple cart. In this case, it makes sense to promote a CEO from within, as an external hire might be disruptive and seen as a negative change, causing instability.
Companies in transformation
This situation can be challenging because many people feel hesitant toward major change. A new CEO from within the company might be used to the way things have been run, and not have the tools or knowledge of alternative options. In this case, the company may benefit from hiring an external interim CEO; one who can join for a short time, make the necessary changes, and then let the company carry on, promoting from within if feasible.
Companies in strategic reorganization
This is the most complex case, as the company doesn’t have control over all variables. The CEO who is appointed will require outstanding crisis management and solution skills, and these may be more readily found outside the organization.
In all scenarios, both the company’s strategic situation and the responsibilities of the role must be carefully considered to ensure the right fit for the conditions. “Even in the case of a planned internal promotion, executive search consultants with their experience across companies, situations and industries are qualified to offer advice and counsel to decision-makers in supervisory boards, advisory boards and shareholder bodies.”
If you need help with your C-Suite talent acquisition or retention strategy, get in touch with us. Email Paul, Brent, Troy, or Tara, or give us a call at 519-673-3463 or 416-847-0036.
For more on what to consider when looking for a new CEO, click here.