Change is the one constant in the working world today. This is reflected in the decline of the traditional career trajectory—moving up the ladder in a specific function within a single industry is quickly becoming a thing of the past. Today’s most successful leaders regularly shun prescribed paths to success. Instead, they come from various educational backgrounds and their careers are carved out of unique experiences, sometimes across multiple functional areas at widely different types of organizations. From this foundation, leaders become poised to embrace challenges in new environments.
Industry or functional “outsiders” often are just what today’s organizations need to compete, and ultimately thrive, in ever-changing competitive times. The practice of hiring from outside has even been referred to as caffeine for a leadership team—a jolt of enthusiasm, innovation, and creativity that happens when organizations venture beyond their comfort zones to find new talent.
Outsiders have always been appealing to organizations for their ability to “shake things up” when things aren’t going so well. It turns out they also have a lot to offer organizations experiencing success.
It may seem risky, even foolish, to recruit talent without expertise in an industry or in a specific function they will lead. Horror stories of disastrous hires abound. In many cases, however, hiring a candidate from outside, even when qualified internal candidates with traditional credentials seem feasible options, actually may be the less risky choice. The benefits of doing so have become increasingly clear. Outside hires can bring:
1. The ability to move beyond the status quo: Though individuals with experience in a function and industry can be effective in stable situations, they often can’t adapt to sudden change or are reluctant to disrupt the status quo, while an outsider generally feels freer and more prepared to do so. An outsider has no ties to the status quo and a broader base of experience from which to draw.
2. Fresh perspectives and ideas: A team comprising individuals with diverse backgrounds and perspectives can be a more creative and agile team than one with a shared history. If everyone is looking at a problem through the same lens, the solutions offered may be narrower in scope. It is difficult for a team whose members have similar perspectives to develop innovative solutions.
Leaders with experience along a straight and narrow path often have lopsided skills. They tend to focus on the familiar and quickly dismiss solutions because “we’ve tried it before and it didn’t work.” They resist inviting different expertise and angles into their approach and problem solving. Leaders who stray outside their comfort zone are open to taking necessary risks, as well as considering new (and old) ideas.
3. An expanded network: Leaders from outside an industry or type of role bring entirely new contacts with them. These associations broaden the organization’s pool of potential talent for future needs.
4. A culture of innovation: When current mindsets are challenged, a more stimulating environment for problem solving is created. A diverse team is more likely to encourage innovative ideas—with a willingness to brainstorm and think outside the industry or functional box. The team may experience some healthy friction, as a by-product of a normal, creative group process.
Easier Said Than Done
The higher up the organization chart, it seems the less important specific functional or industry experience becomes. What matters more . . . the number of years in a specific industry or a leader’s behavior, competency, and track record of success? Is it the right college degree and well-trodden stepping stones that drive competitive advantage or the ability to think strategically, “to figure it out and get it done”?
No doubt it takes extra effort to find talent outside an organization’s traditional sphere. The organization must cast a much wider net. It is also critical to carefully assess and define the needs and culture of the organization, as well as examine the job more qualitatively by skill set rather than quantitatively by experience.
It also may take extra effort to assimilate outsider hires. From commonplace jargon, to the regulatory and competitive landscape, and much in between, they need help to ramp up as quickly as possible. If they happen to be the first “outsider” brought into the organization or their team, the resistance they may face from the “insiders” will need to be addressed. All of this change presents a challenge for training and development professionals.
Ultimately, though non-traditional candidates can be viewed as valuable assets in times of tremendous change. They can prove to be a jolt of caffeine to an organization in addition to stimulating fresh ideas and creativity over the long term.
Michelle Lee is a consultant in the Healthcare practice at executive search firm Witt/Kieffer.
