Interesting article in McKinsey Quarterly, How new CEOs can boost their odds of success
It finds that externally appointed – as opposed to internally promoted – CEOs have a greater propensity to act: they are more likely to make effective strategic moves, such as management reshuffles, mergers and acquisitions.
“External CEOs almost certainly have a leg up when it comes to bold action. They are generally less encumbered by organizational politics or inertia than their internal counterparts. They may also be more likely to take an outside view of their companies.”
“ . . . over their tenure, they outperformed their internally promoted counterparts by a margin of more than five to one.”
“It’s critical for insiders to resist legacies or relationships which might slow them down . . . approaches which help insiders adopt an outsider’s mind-set have great potential.”
As I’ve said in an earlier blog, an outsider’s perspective can work wonders.