Home Insights The Board Decision Most People Get Backwards

The Board Decision Most People Get Backwards

Promoting from within isn't the safe option. It's the one that most needs testing.

When a board already has the right person inside the business, most skip the search. That instinct is backwards: an internal promotion is the appointment that most needs testing, not the one that needs it least.

Why Does an Internal Appointment Need External Testing?

Because conviction and confirmation are not the same thing. David Jones showed how this works well: Chief Commercial Officer Erica Berchtold was promoted straight into the CEO role, becoming the first woman to lead the retailer in its 188-year history, with succession reportedly agreed with the board well ahead of the announcement. That's not a business hedging its bets. It's a business that had already done the work, benchmarking its internal candidate against the market before confirming her as the answer.

A board that's confident in its internal candidate should still want to know how that person compares externally: what an outside commercial leader would bring, what gaps a specialist search would surface, whether the instinct holds up against genuine alternatives. Skipping that step doesn't make the decision safer. It just makes it untested.

What Does This Mean for Boards Right Now?

It means confidential benchmarking has value even when there's a clear internal frontrunner. Across the CEO and executive searches JIVARO has run over eighteen years and six thousand plus executive placements, the appointments that hold up longest are rarely the ones made fastest. They're the ones where the board could point to the process, not just the person.

What's the Cost of Skipping It?

Not necessarily a worse hire, but a weaker mandate. It gives the incoming leader a role that's been assumed rather than tested, and it leaves the board with no external reference point when a shareholder asks how they knew.

Frequently asked questions

Does running a search process mean the board doesn't trust its internal candidate? No. It means the board wants evidence to sit alongside instinct. Trust and testing aren't in tension.

How long should this kind of benchmarking take? Done confidentially and well, a focused market-mapping and assessment process can run alongside internal deliberations without slowing the timeline down.

Does this only apply to CEO appointments? No. The same discipline holds for any senior leadership succession where an internal candidate is the assumed frontrunner.

Related reading: The Return of the Commercial Operator — Why Boards Are Looking Beyond Functional Specialists for Their Next CEO

Chantelle James
CEO & Founder, JIVARO

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