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.

Chief Executive :Chief Executive magazine (published since 1977) is the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business. Chief Executive Group also produces e-newsletters and online content at chiefexecutive.net and manages Chief Executive Network and other executive peer groups, as well as conferences and roundtables that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. Chief Executive facilitates the annual “CEO of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers, and is known throughout the U.S. and elsewhere for its annual ranking of Best & Worst States for Business. Visit www.chiefexecutive.net for more information.