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Case 2.1

In: Business and Management

Submitted By maxijuve
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A. Case 2.1:
To recruit the CEO from the inside seems to work well for Intel. Do you believe this is a sound policy? Why?
I have to say I do agree with Intel’s philosophy to grow and groom its own CEOs and leaders. This way there is continuity with projects that are being developed. This philosophy also permits for the person being groomed to have a better understanding of many levels and job tasks within the organization. By allowing the future CEO to observe and perform tasks with the current CEO will facilitate a smooth transition when the time comes for the change.
On the other hand, by recruiting an external candidate for the CEO position, an accommodation period is inevitable. As much as you try to find the right candidate with the desirable traits for the position of a CEO, this candidate has not lived the culture and you run the risk of this candidate never fitting in.

How can a non-technically oriented leader like Paul Otellini succeed as CEO in a technical company such as Intel?
Although Mr. Otellini did not have the technical background that most of his predecessors had, he obviously possessed the business acumen, not easily taught, required to succeed as a CEO of this company. Besides, because of Intel’s philosophy of grooming its own candidates, Mr. Otellini had the chance to acquire the necessary technical knowledge for such position.

Why do some firms fail to plan effectively for executive succession?
Evidently not every company has the same culture as Intel of hiring from inside, but hiring external candidates, just because they seem to have the executive position experience that a CEO requires with such responsibility. Also some times, companies might get absorb and distracted by corporate headhunters and celebrity CEOs believing this is the best future for the organization. Another common mistake some organizations make is hiring top…...

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