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Is CEO experience a good thing?

You might think that CEOs with experience are the best leaders for organizations.  You would be wrong, according to the Harvard Business Review.    Experience may not be an advantage.

The article, based on 20 years of study, found that execs who ran two companies in a row performed 70% better the first time.    That’s measured by shareholder returns.    Why?    They “fall back on the playbook from their last job.”

Why do we care?

I look for leadership lessons all the time.   Learning that “experience” may not be one for leadership is important.    If leaders just fall back on their playbooks, companies aren’t adapting.  Good to know if you want someone to run the same plays.  Bad if you’re looking for new leadership or new plans.

This is human nature, to some degree.   You do what you think works.   Important to know as you think about hiring people too.  They do what they know.  

Source: The Information