How Insider CEOs Succeed

When an organization taps one of its current executives to be its new chief executive officer (CEO), the transition might seem straightforward. The promotion is often the culmination of years, maybe decades, of hard work. CEOs who come from inside the company have probably served in the C-suite or run a large division before, so they have relationships with everyone in top management and the confidence of the board. They know the organization, its history, and its culture. They understand its strategy and might have been intimately involved in developing it. They've established credibility and support. You'd think, then, that they'd have an easier time adjusting to and excelling in the job than external hires would. In reality, chief executives who have advanced from within face hurdles that are comparable in magnitude, albeit different in character, from those that externally hired leaders confront. Here, insiders' five key challenges are identified including operating in the shadow of their own past; making early decisions that surprise and disappoint supporters and managing the outgoing CEO.