A lot of the executive job seekers I talk to each week are looking outside for new career opportunities. They are casting around for new companies and new market areas where their talents will be appreciated. Why look outside if you are with a good company that may offer career opportunities? In his new book, The CEO Within, Joseph L. Bower, a professor at the Harvard Business School, makes a case that the best CEO candidates are actually mavericks who are already working within the corporation:
“Bower examines the CEO succession process and postulates that maybe the old-boy network isn’t so terrific after all. He says smart corporations hand the ball off to “Inside Outsiders,” executives within the company who know how to play the game but aren’t afraid to try some trick plays.”
Placing yourself in line for a promotion may be a career strategy you overlooked. Here are some interesting insights that Bowers shares in his book:
- The average CEO serves seven years, two-and-a-half years less than in 1980.
- Six out of 10 companies have no succession process for the chief executive.
- The board of directors has limited power in choosing a new CEO.
- By 2004, two-thirds of the companies that were ranked highest in 1990 were out of business, largely due to a lack of strong leadership.
Statistics show that corporations that promote from within are more successful. Jack Welsh, for example, was a prototypical “insider outsider,” who was considered too young and too outspoken to take the reins. By contrast, John Sculley was brought in from the outside to run Apple. A successful Pepsi executive, Sculley was successful at first, pushing Steve Jobs out when Sculley was named CEO. But as an outsider, he failed to grasp the dynamics of high-tech, and lost market share to Microsoft and Intel. His failure demonstrated that success in one industry – selling soda – did not necessarily translate into success in another industry – selling technology.
Companies fail on succession planning because they are too busy focusing on day-to-day operations. So rather than grooming a new generation of leaders, companies shuffle executives into roles where they can perform and add to the bottom line. This means there is opportunity for you if you have the right leadership skills. You need to groom yourself to step onto the throne. Inside outsiders have a distinct advantage. They know the company and its culture. They understand the structure and hierarchy. They recognize interdepartmental dynamics. To prepare for the CEOs position, you need to understand financial operations, market share, and investment strategies.
You can’t always align yourself with the succession plan. Companies hire people for specific skills, without assessing their leadership potential. However, smart companies give their eager young leaders opportunities for advancement. Mentoring is important. See if you can find the right senior manager to help you develop your leadership skills.
The key is to find ways to develop your CEO potential and inject yourself as the inside outsider. The experience you gain should prove valuable, whether you decide to stay with your current company or seek greener pastures somewhere else.
