The Outsider Advantage?

The longstanding bias toward internal candidates in succession planning may be lessening—at least in certain circumstances, according to CEO Success Study, a new report from PwC’s Strategy&.

The number of outsiders brought in during planned successions rose to 22% between 2012-2015, up from 14% in 2004-2007, leading study authors to posit that companies increasingly need CEOs whose experience can help them address “significant discontinuities” like industry convergence, digitization and regulatory change.

“Outsiders who don’t have biases and commitments built up over the years and can make changes more objectively” may be better equipped to lead transformative change, sums up Gary Neilson, thought leader on organizational design and leadership with Strategy&, and a principal with PwC U.S.

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