Your Next CEO Shouldn’t Be ‘One of Us’
Succession planning is crucial to the survival and growth of any organization. When done right, it ensures a seamless leadership transition, minimizes disruption, and positions a company for future success. The best way to do this is to hire based on strategy, not last-minute needs. But there are common pitfalls that organizations often fall into—waiting until it's the 11th hour and the temptation to promote someone who is “one of us.” While it may feel like the safer option to hire someone similar (Who wouldn't love a new friend to grab a beer or play golf with?), it can carry hidden risks that undermine the future of the organization."
One of the worst mistakes you can make when hiring is to employ somebody who’s just like you. Subconsciously, it’s an easy mistake for every employer – you’re keen to hire, you interview a candidate with the same drive and determination as yourself, the same humor, the same attitude – and suddenly you’ve hired your double without even realizing it." Invenia
Familiarity Breeds Stagnation
When companies focus too much on finding someone who fits their existing culture, they often sacrifice innovation for comfort. Selecting a leader who is an internal fixture, with years of experience navigating the company’s processes and politics, might seem like the obvious choice. However, this approach can lead to stagnation, where leaders simply perpetuate the status quo instead of driving necessary change. "When we hire people who are like us, we don't hire the people we actually need to grow the business," says Tommy Mello, of Forbes. When the next CEO is chosen based on how well they reflect current leadership instead of how they can elevate the company, evolution is stifled.
Fresh Perspectives Drive Innovation
The most successful companies are those that adapt and innovate. Succession planning should consider not just who can carry on the current vision but who can take the company into the future. Internal candidates have a strong knowledge of our culture, processes and methodologies, have many relationships throughout the organization, and will save money, external hires inject fresh perspectives, industry insights, and diverse experiences that challenge existing processes and spark new opportunities. This infusion of new ideas is often critical in industries undergoing rapid transformation.
The Echo Chamber Effect
Another danger of choosing “one of us” is the risk of creating an echo chamber. Internal candidates are often steeped in the same organizational values and practices, leading to "groupthink and weeds out diversity of thought. Instead of hiring on culture fit, hire on cultural contribution," says Victor Snyde of Forbes. Remember, in times of market disruption or intense competition, the ability to pivot and think differently is essential. An external hire may be more willing to challenge entrenched practices and bring in innovative strategies that an internal candidate might not consider.
Emotional Attachments Can Cloud Judgment
Succession planning is often influenced by emotional ties, particularly when a leader has spent years mentoring their potential successor. While this relationship can foster loyalty and trust, it may also blind current leadership to weaknesses in the candidate’s skill set. The desire to keep leadership “in the family” can prevent a more objective assessment of what the organization truly needs for its next chapter. Emotional connections, while valuable, should not dictate business decisions that will shape the company’s future.
The Risk of Overlooking Gaps in Leadership
Internal candidates, even those who have performed exceptionally well in their current roles, may lack certain skills required at the CEO level. The leap from a functional leader to a CEO is vast, demanding strategic vision, broader business acumen, and the ability to navigate global complexities. Choosing a leader based on familiarity rather than capability can leave organizations vulnerable to leadership gaps. Succession planning needs to focus on a holistic view of leadership, considering whether internal candidates can evolve and meet the ever-expanding demands of a CEO.
Balancing Internal and External Options
This isn’t to say that internal candidates should always be overlooked. They often bring valuable institutional knowledge and an understanding of the company’s culture and operations that an outsider would need time to build. However, companies should be equally open to external candidates who bring new ideas, skills, and perspectives. A balanced approach to succession planning involves thoroughly evaluating all potential leaders—internal and external—based on their ability to meet future challenges rather than just past successes.
Avoid the Comfort Zone Trap
The phrase “one of us” can signify a leader who reflects the current culture, but it can also indicate a reluctance to evolve. Organizations that fall into the trap of choosing successors who feel safe or comfortable may miss out on the dynamic leadership needed to drive future success. A forward-thinking approach to succession planning recognizes that the best candidate for the role of CEO is not always someone who mirrors the past but someone who can lead the company into the future.
In the end, your next CEO should be someone who challenges your organization to grow, innovate, and thrive—not just someone who fits neatly into the box of “one of us.”