Liz McPhersonChief Culture Officer
9:10 AM Future Fund: Developing Internal Talent for Succession VS Finding a CEO Externally – How to Make Cost Effective Decisions for Business Development
When choosing the next CEO, board of directors often go through the question, “to go with an internal candidate, or recruit an executive from another company?” The downtime period between a business-critical employee leaving and their new successor (hired or promoted) reaching their optimal performance costs the organization nearly $45,000.
This session will present how, in the world of job hopping, it is difficult to find an internal candidate who has been through
various positions within the company. However, hiring an outsider comes with its own challenges.
- Reflecting on why charismatic outsiders are hired even when their experience and abilities are not right for companies’ needs
- Assessing how externally appointed CEOs seem to underperform their internally promoted counterparts over the long run
- Discussing how promoting internal candidates can be cost effective for the organization
- Exploring how organizations can save time by building an effective succession plan