Why newcomers fail

Newcomers lack two advantages of the insider:

  • a network of loyalists in the company who can help them lead and
  • available time in which to plan their tactics.

An outsider has to build his network of loyalists very quickly. Given the context of newness all round, he or she may pick the wrong people. It can take several years to build mutual trust with new colleagues, a new culture, and new ways of doing things. But stock markets are reluctant to give CEOs that time.

In contrast the insider, given adequate notice of his next job, has time to prepare, to lay the foundations and to think through the next steps within a relatively secure and unthreatening environment. The insiders already know their trusties, they know the culture and they know the extent of their own credibility.

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