How a Horse Race Can Help Companies Pick Out Their Next Leader
Horse racing has a long history. It includes international favorites such as the Dubai World Cup and the Royal Ascot. But it also provides a number of benefits for organizations. Besides the money, a horse race can give a company a sense of ownership and accountability for its performance.
A horse race can also help companies pick out their next leader. It is a way to identify potential future stars early and groom them into critical roles. Whether a race is for the CEO, president, or another management role, it can serve as a stepping stone for a future star.
Traditionally, a succession “horse race” pits two or three senior executives against each other. The winner becomes the next chief executive officer. Some directors fear that a protracted succession horse race could lead to business momentum slipping away. On the other hand, other executives see it as a great motivator for employees.
One important factor for boards to consider is the culture of the organization. This will influence how the board chooses its next leader. If the CEO’s success is seen as a source of pride for the organization, then it is more likely that the board will be comfortable with the choice. However, if the winner is not viewed as an appropriate fit, other executives may be cut from the senior leadership team.
When the field of candidates is narrowed down to the top two or three, the next step is to choose the right one. Having an overt competition for the top job is a good indicator that the board has faith in its leadership development process and the abilities of its management.
Depending on the organization, the board may want to develop strategies to ensure that disruptions are kept to a minimum. For example, a company’s strategy could depend on resource sharing. Another consideration is whether to focus on internal collaboration. In any case, the board should determine whether the winner is a good fit for the organization and, if so, how to implement strategies to minimize disruptions.
In addition, the board should evaluate the organization’s culture to determine if it would be appropriate for the selected leader. If the company is already developing a culture of high performers, then it will be easier to select a strong internal candidate.
The board should also evaluate the candidates’ character and potential. The media often covers the character of candidates. Having a good image is important for any election, but a candidate’s image can be compromised if it tries to overemphasize the substance of the candidate rather than his or her potential.
Another factor for a board to consider is the horse’s performance. There are several different factors that affect a horse’s ability to perform, including the jockey, training, and the horse’s age. Often, the best jockeys are put on the most competitive horses. However, this can nullify the value of the jockey.
In most jurisdictions, a NOD operation is the winning method. When the jockey rides the horse, he or she lowers the head and swivels the shoulders to slow the horse down.