We have run our company with a tight-knit group of early employees, but we now need to bring in our first outside executive to lead a major division. How do we determine whether we should promote a loyal internal manager or hire an experienced external leader for this critical seat on our leadership team?

Question

Tyler Smith · Accepted Answer

Choosing between promoting a loyal internal manager and hiring an outside executive is a critical turning point for any growing business. To make this decision objectively, you must remove personal bias and rely entirely on your Accountability Chart.

Start by defining the exact roles and responsibilities of the seat you need to fill. Once the seat is clearly defined, evaluate your internal candidate using the GWC™ framework. Ask yourself if they truly Get It, Want It, and have the Capacity to Do It. Getting it means they intuitively understand the deep requirements of the role. Wanting it means they genuinely desire the responsibility, not just the title. Capacity means they have the mental, emotional, and physical capability to lead at an executive level.

If your internal candidate lacks the capacity to lead a larger, more complex department, promoting them out of loyalty is a disservice to both the individual and the organization. Doing so creates a weak link on your leadership team, and those cracks will quickly turn into major issues for their direct reports.

If you must hire externally, use your core values as the primary filter. A highly skilled executive who does not share your core values will reject your culture like an organ transplant. Ensure your hiring process tests for culture fit first, and technical capability second, so your first major external hire strengthens your leadership team cohesion from day one.