If your company’s growth is stagnant, or if you’re failing to come up with new ideas, then consider adding outside talent to your leadership team. New research from the University of Missouri found that hiring outside CEOs rejuvenates struggling businesses, and they execute different strategies than CEOs promoted from within the organization. Learning about the benefits of hiring outside leadership will help you better assess whether your company can profit from hiring outside talent.
EXPERIENCE
The right kind of experience can be instrumental in taking your business to the next level. For example, executives who have helped similar size companies achieve large growth have insight into what works. They can identify proven strategies and tactics that were successful at their previous company, and put those strategies into place at your organization. Because of their experience, you then have a benchmark of success for what is attainable for your company
PERSPECTIVE
In addition to experience, CEOs hired from outside the company bring a fresh perspective and cutting-edge approach. Researchers analyzed key business decisions of new CEOs and discovered that outside hires spend more money on research and development, and their decisions are indicative of a commitment to innovation. When your company is not performing, change is clearly needed and you should look for outside talent to breathe new life into your firm.
POSITIVE MESSAGE
When a company goes outside for new leadership, it sends a message to the employees and the board that the company recognizes the need for change, and is willing to invest in the future of the business. Outside candidates aren’t burdened by the past and can quickly make an impact on the company.
CURRENT TEAM LACKS THE SKILLS
Many companies make the mistake of promoting top performers into leadership positions. While this may sound like a good idea and a natural progression for the candidate, not all individual contributors want to be in leadership positions and many of them don’t have the leadership skills necessary to lead a team.
If you promote a top performer to a leadership position, their performance may suffer and in turn, they might become dissatisfied and looking for positions elsewhere. You could end up losing one of your top performers and a leader at the same time. If you’re really looking to hire a top performing leader but don’t have anyone with leadership skills, it’s best to look outside your company.
CULTURAL SHIFT
Another reason to hire outside leadership is if your company is trying to go in a different direction culturally or is trying to shake things up. Changing the leadership is a great way to change to solidify this shift. For example, if a previous leader has created a culture of negativity and mistrust, then promoting someone from within might not break your employees from this mindset but instead perpetuate it. However, hiring a leader from outside your company shows you’re serious about making positive changes within the company.
Hiring outside leadership may be just what your company needs to reach your desired growth. We can help you find the perfect candidate for our Executive Search Services. Or call today and find out how we can help: 866-487-4156.
RELATED ARTICLES
