An that internal hires will already know. As

An advantage to hiring a new CEO
internally is that CEOs who have worked with the company have an edge over
those who have not. This is because company-specific knowledge about its
vision, mission, and values cannot be easily acquired, and CEOs without firsthand
experience at the company won’t be able to speedily understand specific
elements of the company that internal hires will already know. As a result,
internal CEOs can often start implementing their fresh ideas quickly because
there is no time spent on learning company operations, understanding the
culture and processes, and assessing the management. However, a disadvantage of
hiring a CEO internally is that after working with a company for an extended
amount of time, it can be tough to think of different ideas and solutions to
problems the company may be facing. Also, by hiring a new CEO internally (and
in general), it may be difficult to implement big reforms or change the
strategic vision and/or mission of the company.

 

When hiring a new CEO externally,
there are more candidates to choose from because the talent pool from outside a
company is bigger. Also, bringing in a new person can be a great way to gain a new
perspective on how achieve company goals and improve performance. This insight
can help to transform a company and revitalize a company’s vision and/or
mission. However, it can be hard to learn a new company’s operations,
understand the culture and processes, and assess the current management
expeditiously when a CEO is hired externally as mentioned above. Because of
this, those who hire a CEO without experience with the company may experience
longer timeframes to implement much needed changes. In addition, passing over
qualified applicants may send the message that the company does not value
employees, making it harder for current employees to buy into the changes a new
leader will make.

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