The decision to look externally for a new CEO or to promote internally is one of the most important decisions that a board is faced with. An interesting analysis from McKinsey looks at how new CEOs can boost their odds of success, highlighting the importance of quick action and of adopting an outsider's perspective.
When the time comes to appoint a new CEO, corporate boards face a difficult question: promote an executive from within or choose an outsider? We turned our own lens to this issue and found that the performance of outsiders and insiders differed significantly. Externally appointed CEOs have a greater propensity to act: they were more likely to make six out of the nine strategic moves we examined.