In this episode of Build Better Boards, host Mitch Majeski is joined by Dr. Keri Jacobs and Richard Fagerlin to discuss the strategic considerations boards face when choosing between internal and external candidates for CEO succession. They examine the pros, cons, and nuances of each option and emphasize the importance of a thoughtful and rigorous selection process.
Key Discussion Points:
Internal candidates offer cultural fluency and organizational knowledge, but may carry status quo bias or be unfairly treated during the process.
External candidates bring fresh perspective and disruption but lack insider context and may face a steep cultural learning curve.
Boards should avoid defaulting to familiarity or novelty—every CEO search should be driven by current organizational needs and goals.
Running a full external search—even with a strong internal candidate—ensures rigor, fairness, and confidence in the final decision.
Common board missteps include overvaluing charisma, undervaluing culture fit, avoiding difficult decisions, and delaying succession planning.
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