Post by Dylan Jones

Boards have a tendency to default to internal promotions when they can, and for good reason. They're cheaper and faster, and it usually sends a message to the whole organization that there is a path forward inside the company so you don't have to leave to progress. The problem is that most businesses don't really do enough to make sure internal candidates look like they're ready for the full scope of what being a CEO actually requires. They develop deep functional expertise, but the 'softer' stuff - like how to build a cross-functional strategy, how to motivate teams, how to talk to investors, how to manage through a crisis, doesn't always get the time it needs. So when boards probe on that during interviews, they often decide that the safe thing will be to reach outside, and leave the internal bench out of the picture. The HEINEKEN Company did just that, naming outsider Rafael Oliveira its new boss today. That follows a surprise CEO resignation, 6,000 planned job cuts, and a sustained sales slump, and it's the kind of move a board tends to make when it needs to communicate to the market that they recognize something has to change. The 1.8% share bump this morning suggests it has landed well externally, but internally there will still be questions about who the new guy is, what he will want to do when he finally gets into the building in four months, and what does it mean for the people that Heineken really wants to stick around. https://lnkd.in/e2qh4YyG