The Underutilized Power Move of Promoting from Within: Why 70% of Top Companies Are Getting It Right
When Nike appointed Elliot Hill as their CEO following one of the company’s worst performances in decades, they made a bold move. They didn’t scour the outside market for an “industry expert” or an “experienced CEO.” Instead, they chose someone who had been part of Nike’s journey for over three decades. Elliot wasn’t just filling a seat; he was carrying the culture, the vision, and the legacy that Nike built. He knew Nike inside out.
Nike’s decision is part of a broader trend seen in successful companies globally. Around 70% of CEOs at top-performing companies are promoted from within, proving that tapping into internal talent is often a winning strategy
And yet, many companies still hesitate when it comes to promoting from within, especially for top-tier roles. The usual objections come up: “They don’t have enough experience at this level,” or “Their leadership skills aren’t fully developed.”
Let’s flip that narrative.
The Untapped Power of Homegrown Leadership
Promoting from within isn’t a fallback — it’s a strategic advantage. You’re choosing someone already deeply embedded in your culture, who understands your brand’s unique challenges and aspirations, and who is emotionally invested in the company’s success. They’ve lived the journey, made mistakes, and learned what makes the organization tick. The learning curve? It’s already behind them. The trust? Already earned. The loyalty? Built over years.
Internal promotions are an underutilized winning strategy for both well-established organizations and early-stage businesses, which rely heavily on culture and team cohesion to drive success. By promoting from within, you reinforce a strong sense of belonging and credibility within your team. When employees see that leadership opportunities are accessible to those who grow with the company, it enhances retention, boosts morale, and fosters a more unified, stronger culture. Companies not only retain top talent but also cultivate a leadership pipeline that continues driving the organization’s vision forward. In essence, you’re not just filling a role — you’re fortifying the core values of the company.
Promoting from within isn’t a fallback. It’s a strategic advantage
Real-World Examples of Homegrown Executives
- Tim Cook — Apple
Tim Cook might have seemed like an unlikely successor to Steve Jobs, but Apple didn’t look outside for their next leader. Cook had already spent 14 years at Apple, shaping their global operations. When he became CEO, he knew every nuance of the company, every corner of its ecosystem. Cook didn’t just take over Apple — he elevated it, growing the company to become the first in history to hit a $3 trillion market cap. - Mary Barra — General Motors
Mary Barra started at General Motors as an intern at age 18. Thirty-three years later, she became the first female CEO of a major global automaker. She didn’t just land a top role — she navigated GM through massive shifts in the auto industry, including spearheading the company’s shift to electric vehicles. She knew GM’s strengths and weaknesses better than anyone from the outside ever could. - Satya Nadella — Microsoft
When Satya Nadella became CEO of Microsoft in 2014, some questioned whether he was the right choice. But after 22 years at Microsoft, Nadella wasn’t an outsider looking to “shake things up.” Instead, he focused on reimagining the company’s culture, driving Microsoft into cloud computing and reviving its innovative spirit. The result? Microsoft’s market value has more than tripled under his leadership. - Doug McMillon — Walmart
Doug McMillon’s journey at Walmart began as a summer associate in one of its distribution centers. Over the next three decades, he worked his way up, eventually becoming CEO. His deep understanding of Walmart’s complex supply chain and customer needs allowed him to make quick, informed decisions, especially during the pandemic, where Walmart emerged stronger than ever. - Andy Jassy — Amazon
Andy Jassy joined Amazon in 1997, just three years after its founding, as a marketing manager. He was closely involved in the development of Amazon Web Services (AWS) to become a dominant force in cloud infrastructure, Jassy was promoted to CEO of Amazon in 2021, succeeding Jeff Bezos. Jassy’s deep, long-term involvement with the company — made him uniquely positioned to lead Amazon. His familiarity with Amazon’s culture and strategy allowed him to maintain its bold innovative trajectory while seamlessly transitioning into the role.
You’re not just filling a role — you’re fortifying the core values of the company.
Why Do Companies Fear Internal Promotions?
Let’s be honest — most companies shy away from promoting internal talent because they fear the internal candidate won’t have the executive polish or experience needed for the big leagues. There’s this underlying belief that leadership is something that needs to be imported, that an outsider will bring “fresh ideas” and save the day.
The “Fresh, Unbiased Perspective” Fallacy
One of the most pervasive reasons for hiring externally is the belief that an outsider will bring “fresh ideas” or an unbiased perspective that internal candidates supposedly lack. While external hires may introduce different experiences and are often perceived as less influenced by the company’s ingrained thinking, this perceived advantage can be outweighed when an internal leader has the right leadership mindset — one focused on continuously challenging their own assumptions, the status quo, and striving for improvement.
Internal candidates who adopt this mindset can often surpass the innovative thinking attributed to outsiders, especially given their deep knowledge of the company’s inner workings. While external hires may appear to offer novelty, internal leaders equipped with a growth-oriented mindset can deliver sustainable innovation from a more informed position.
Internal leaders are in the best position to identify where innovation is most needed, having been part of the company’s journey and understanding its pain points intimately. As a result, they often bring more actionable and relevant solutions rather than lofty, unfamiliar ideas that may not fit the organization.
Concerns About Lack of Correlating Experience
True, having broader experience in a higher title or role can be an advantage, but is it so significant and hard to bridge that it outweighs the benefits of promoting from within? No one is ever fully “ready” for a new leadership role — not an internal candidate, not an outsider. The key difference is that an internal leader already understands your business, its challenges, and its DNA, while an outsider will need time to catch up.
Yes, the internal candidate may lack some experience in specific senior-level functions, but what they don’t lack is a deep, intimate knowledge of your company’s operations and culture. Often, all they need to close that gap is the right leadership development to help them grow into the role.
In contrast, outsiders face a steep learning curve as they familiarize themselves with the organization’s personnel, processes, and culture, often requiring a longer ramp-up period. Internal leaders, despite needing development, are typically better equipped to deliver quick, effective results due to their deep-rooted understanding of the organization. This institutional knowledge gives them a significant advantage in executing changes swiftly and successfully, making them strong candidates for higher leadership roles.
The Solution: Leadership Power Boost
Internal talent doesn’t need years of experience in a top role to succeed — they need a Leadership Power Boost. They need focused development, real-time guidance, and support to grow into the role quickly and effectively.
That’s where my Leadership Power Boost service comes in. I work with potential leaders and existing executives to provide that hands-on coaching that helps them navigate daily challenges and unlock their full potential. It’s about preparing them to not just survive in a leadership role, but to thrive — and drive the company to new heights.
Promoting from within can turn your potential leaders into your next great executives — and turn your current executives from a good decision into your best decision.
The Bottom Line
The next time you’re faced with the choice between hiring from outside or promoting from within, remember this: Some of the world’s most transformative leaders didn’t come from the outside. They were already there, waiting for the opportunity to step up.
Instead of looking outward for the next savior, look inside. Your next CEO — or leader — could be one Leadership Power Boost away from becoming the best decision you’ll ever make.
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Interested in delving deeper into this topic or need personalized guidance? Reach out to me at orenykb@gmail.com for dedicated consultancy tailored to your specific needs. I’m here to support you on your journey.
