PEOPLE | CEO SUCCESSION
Among other reasons , Remick cites a major organisational transaction that changes the profile need for a CEO , and demand for very deep turnaround skills .
External hires can bring fresh perspectives , innovative approaches Skinner concurs that an external CEO is preferable if a company has a major strategic shift in strategy , operating model , or geography , requiring different experiences than those found internally .
“ If an industry is being disrupted and requires different skills , or if they are entering a different cycle pivoting from growth to consolidation or turnaround ,” she says . “ Equally , an ethical issue may have been identified at the top , or investors are looking for a shift , and a new leader with external perspective may be required to drive a significant transformation .”
Starbucks is a case in point . The coffee chain giant , which hopes to name a permanent successor to the CEO role later this year , is only considering external talent for the top job – a deliberate strategy to find “ a different kind of leader to manage changing worker and consumer behaviour ”, Interim CEO Howard Schultz said . “ For the future of the company , we need a domain of experience and expertise in a number of disciplines that we don ’ t have now .” Kurtz argues that it is much easier in a situation that requires major transformation to have those changes implemented by an external CEO , one surrounded by a few key executives who share her or his drive for significant change . Conversely , it can be very difficult for a long-standing executive to assume a different , and strong , changeoriented stance if she or he was a significant part of the prior leadership .
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