When new CEO’s transition into their roles, changes happen. They typically assess the organization design, complete a strategic review and assess the resource allocation between business units.
If the CEO is external, he/she tends to outperform an internal hire because of the willingness to challenge the sacred cows and reverse previous CEO decisions.
If the CEO is internal, he/she tends to outperform an external hire because the new CEO knows where the levers of influence are, what the challenges are, and where the bodies are buried.
Thus, whether internal or external, a new CEO needs boldness, external perspective, influence and willingness to challenge the status quo (Source: McKinsey).
How does your company effectively transition leaders?
