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By Cassandra Frangos – Forbes

The majority of executives I meet and coach have reached the C-suite in one of two typical ways. The first, internal promotion, has forever been the most common path to the top team. (Insiders account for 77% of all CEOs appointed as part of planned successions between 2012 and 2015.) The second path, external recruitment, includes outside appointees who move into the C-suite immediately, as well as individuals hired as “number twos” who later ascend into a top spot.

Although there is a science to reaching the C-suite along these predictable paths, it is more novel, and perhaps more instructive, to look at leaders who manage to do it differently. These nontraditional paths to the top show that there are multiple ways to reach the C-suite, and opportunities arise when executives can prove their value in distinctive ways:

The Consulting Path. This path to the C-suite is particularly promising when a consultant not only has an unvarnished perspective on emerging industry dynamics and is recognized by its executives, but also when they have an inside-outsider perspective. For example, my past colleague Ruba Borno landed on Cisco’s executive team by way of Big Three consulting. Currently chief of staff to CEO Chuck Robbins, Borno advised Cisco in a management consulting capacity at Boston Consulting Group. At BCG, Borno specialized in digital transformation, postmerger integration, and strategy execution—all things that were core to Cisco’s business. Her on-target knowledge, combined with her familiarity with Cisco operations and executives, made her uniquely suited for the execution-focused role of chief of staff.

Note that this path can be a pipeline into operational C-level roles, like Borno’s, or more general C-suite jobs.

The M&A Path. Mergers and acquisitions drives structural changes in organizations that carve openings for new executive roles. For instance, when a large company acquires a start-up, founding officers may be kept on for the purpose of continuity. Yoky Matsuoka, for one, was vice president of technology at Nest in 2014, when Google acquired the company. Matsuoka left Google to be CEO of a health-data startup, but she returned to Nest in 2017 as chief technology officer. In an acquisition situation, executives are most valuable to acquiring firms when they have deep institutional knowledge and (in the case of tech start-ups) technical familiarity with the acquired product or business. The rub is that post-acquisition executives are seldom brought directly into the C-suite. They often land several levels down and need additional experience before getting in line for a top job.

Board to C-suite. As an extension of the C-suite, board members play a governing role in CEO successions. Less often, board members themselves move into traditional C-suite roles. Research shows that outside directors moved into CEO roles 58 times in Fortune 1000 companies between 2005 and 2016. As the study points out, directors can be an attractive option for the top team because of their experience and big-picture perspective.

Yet, according to one expert I interviewed recently, this path may signal dysfunction in the boardroom. He told me that sourcing a CEO from the sitting board can reflect an organization’s lack of readiness for the succession. In addition, directors turned CEO don’t stay in place long, with those named on an interim basis remaining less than six months and those named permanently staying an average of 3.3 years.

Functional C-suite to CEO. It is not unheard of to have a COO, CFO, or even a chief strategy officer (CSO) become CEO—as long as they have experience beyond their particular functional roles. Indra Nooyi is an excellent example. Appointed CEO of PepsiCo in 2006, Nooyi served as CFO for five years, during which time she restructured PepsiCo and led multiple acquisitions. Although moving from CHRO to chief executive is less common, Euro Disney’s onetime CEO, Philippe Gas, moved directly from the human resources lead at the organization to CEO, where he remained from 2008 to 2014.

Certain C-suite roles are on the CEO fast track. In fact, COO and CSO are sometimes considered chief executive “understudy” positions, meaning the role is created as part of the CEO succession process to give short-list candidates access to the right experiences and as a way to pressure test their instincts. Still, not all C-suite executives are ready for the top leadership spot. To become CEO, leaders in functional C-suite roles need to show more than just a successful tenure within their respective functions. They must also complete prior rotations in general leadership positions such as division president or product line director and other jobs with strategic and leadership responsibility.

Entrepreneur to C-suite. A final alternative path I have seen up close occurs when start-up founders move into C-suite positions at established companies. Anthony Soohoo of Walmart told me his status as an “occasional entrepreneur” is integral to what makes him effective in his current position as senior vice president and group general manager of Home e-commerce for Walmart. Previously, Soohoo founded Dotspotter, a mobile entertainment news service, and more recently cofounded Dot & Bo, an online home goods community aimed at millennials. Of his work as a corporate officer at the big-box retailer, Soohoo said, “Entrepreneurship is more of a mindset now…one that is sought after no matter the size of the company.”

Entrepreneurial leaders reach the C-suite in established organizations when they can show that they are visionaries who have benefited by experiencing key start-up experiences such as resilience, failure and reinvention. Of course, not all founders are cut out to be C-suite leaders. To be considered for the job, founders need to demonstrate that they can fit into the corporate culture and manage the political dynamics in a way that gets things done.

In my work, I have seen the race to the top team play out repeatedly. The distinctive paths mentioned here, I’ve noticed, have something in common with each other, and with more typical paths to success. The executives who successfully navigate alternate paths are strategic in their careers and open to opportunities. Yet, at the same time, many are too involved in the every day to actively lobby for a job. Instead, they focus on doing their work extremely well and leadership opportunities eventually present themselves.

 

 

 

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