Recruiting executive talent across ANZ, I see firsthand how companies struggle when elevating high-performing managers into executive roles. It’s easy to assume that exceptional managers will naturally evolve into outstanding leaders, but in reality, the skills that make someone great at management of technical tasks don’t always translate to leading an organisation. The ability to execute is not the same as the ability to envision, influence, and transform.
That’s why it’s critical to assess whether internal talent is ready for executive leadership, or if a fresh perspective is needed. Here’s why making the distinction between capable managers and capable executive leaders matters.
Key Differences: Tactical Leadership vs. Visionary Strategy
As leaders advance through the ranks, the scope of their responsibilities shifts from tactical to strategic. Managers excel in technical skills, focusing on day-to-day operations, driving results, and achieving short-term goals. Their leadership success hinges on efficiency and problem-solving. However, at the executive level, leaders must focus on the long-term vision, organisational change, risk management, and influencing across the company. Hogan Assessments emphasises that higher managerial levels require socioemotional skills like driving transformation, navigating uncertainty, and fostering relationships, key capabilities for leading at the C-suite and beyond.
Why Assessment Is Crucial: Internal Talent vs. External Appointment
Assessing the strengths and capabilities of internal managers is critical to determining if they can transition into executive roles. This evaluation ensures that leaders possess the necessary skills to manage larger responsibilities and drive organisational success. McKinsey’s research underscores that a leader’s impact can influence up to 45% of company performance, making the appointment process crucial. If internal candidates fall short, companies must be open to external talent, which can provide fresh perspectives and align with evolving business needs, ensuring continued leadership success in changing markets.
Succession Planning: Fit Over Familiarity
Succession planning should not be about promoting based on familiarity but about ensuring the right fit for the company’s future. A strategic approach to leadership development ensures that the company can adapt to growth, disruption, and transformation. While internal talent may have deep knowledge of the organisation, executive roles require strategic thinking and leadership competencies that may not always be found in-house.
Get in touch to explore how Emu Search can support your leadership strategy through tailored talent intelligence and executive search. Let’s ensure you’re not just ready for change, but ahead of it.