When a C-suite staff member moves on or retires, it takes an average of four months, and can cost thousands of dollars, to find a replacement. And let’s not forget package negotiation, the move, onboarding, goal setting, minor reorganization—it can be a year or more of work before a new executive hire is in place and productive. Yet, 50-70% of all executive searches fail.[1] They end with the new hire being unsuccessful and leaving the position. Leaders can place blame on the search firm, or not defining the position well, or poor onboarding, or just selecting the wrong person. The reality, though, is that most people in leadership roles don’t know where new leaders come from, or how to develop and grow leaders themselves.

Outside in. In order to hire an experienced leader, organizations are prone to go outside their walls. This approach may lead to someone who has led at another company in the same industry, or has led at the same executive level. Leaders seeking leaders look for experience and a proven track-record. However, there’s the possibility that an outside hire will not integrate well into your company’s culture. Or that their experience in another area or organization will not translate into success at your firm. Instead of an outside-in approach, consider the option of growing leaders who are already inside your company.

Likely you have individuals with the potential to be excellent leaders, but are missing the training, discipline or skills required. A survey of 2,600 Fortune 1,000 executives recently found 76% saying that leadership development and coaching at their companies was inadequate.[2] The most common inside development process is simple promotion—a potential leader is given more and more seniority as they hit performance goals until they reach a point of incompetence—their role grows but their capacity to lead is not formally developed at a commensurate rate.

Growing versus hiring. Developing someone into a leadership role is not something most companies consider because they are not equipped for it. Existing leaders lack the knowledge and processes necessary to identify potential leaders, and then guide them into leadership over time. But the advantages of this approach are tremendous. Growing a leader from within means he is already familiar with the company’s culture and values. He has direct relational experience with other staff and clients. He knows the company’s definition of success, and he likely knows which personnel and resources will help him reach his goals. Further, when a current worker sees advancement potential within the company, he is more likely to stay and grow versus leave for better prospects elsewhere.

What he may not have is experience in making a big decision or choosing the correct direction. Here too, current leaders are in a better position when developing a leader versus hiring one. An in-house person being cultivated for a leadership role can meet regularly with executives, and be mentored in how to lead in a way that is good for the company. When he says, “I’m thinking we should do this…” and it’s the wrong direction, a mentor can say, “Let’s consider this other option, and here’s why…”. This give-and-take, over a number of years, can produce a leader who is far more qualified than any outside hire would be.

A biblical example. Leadership development has its roots in the Bible, and we can look there for an excellent model for how to identify and grow leaders from scratch. Think about how Jesus led during His time on earth. Interestingly, when He began His ministry, He did not approach or engage the religious leaders of the time. He did not pick the men with the most knowledge of experience. Though He knew He would need leaders in His ministry, He did not seek out qualified men of the time. Instead, He chose a mix of ordinary men from various walks of life to be His disciples. He chose to develop men versus recruit them. His disciples were not the most qualified, but they were the most willing.

In Matthew 4, Jesus invited Peter, Andrew, James and John, who were fishermen, to join Him. Jesus told them, “Come, follow me, and I will send you out to fish for people” (Matthew 4:19). Notice how Jesus connected a skill they already knew—fishing—to what He wanted to teach. Jesus was commonly referred to as rabbi, or teacher, by His disciples and others (Matthew 26:25, 49; Mark 9:5, 11:21, 14:45; John 1:38, 49, 2:2, 4:31, 6:25, 9:2, 11:8). Often in the Jewish Talmud, a rabbi would teach “in the name of” another rabbi. Jesus taught in His own name. His leadership mandate was learn how to be more like me.

In the Jewish tradition, “to repeat” means the same as “to teach”. Jesus’ disciples spent their time watching Jesus and following His example. They asked questions. And Jesus gave them tasks to do and people to meet. Jesus’ leadership development was immersive, inspiring and illuminating. And it was not easy. Jesus told His disciples how His life would be sacrificed. He told them that being His disciples would require their very lives.

Outside the box? In modern executive searches we sometimes seek out leaders who “think outside the box.” One objective in outside hiring is to bring in someone who reasons differently or creatively in the role—who brings a talent or skill to play that is not presently in the organization and may give a competitive advantage. A common reason to overlook inside promotion is to gain “new thinking”. But this, too, can be taught as a leadership skill.

Look again at the example of Jesus, Who used simple but contradictory statements to encourage His disciples to think differently. In the Sermon on the Mount (Matthew 5-7), Jesus repeatedly taught, “You have heard it said… but I say to you instead…”. Leadership development can include the facet of questioning conventional thinking and the status quo. Leadership development at the core is considering the capacity to lead not as a talent possessed by a few men, but rather as a skill that be built over time in many different men.

The cost of leadership development. The most striking reason for the success of Jesus’ leadership development practices is the very same reason many leaders today are not successful. It takes an enormous investment of time. Jesus called His disciples, then spent three full years with them, every day and night, teaching them and leading them by example. How do we know those disciples listened and learned what Jesus was teaching? Four of them—Matthew, Mark, Luke and John—wrote the Gospels, where we find all of Jesus’ teachings in the Bible. Other New Testament books were written by Luke, Peter, John, James and Jude.[3] The Bible itself is a literal testament to the effectiveness of Jesus’ leadership development. He chose twelve men, and through the power of the Holy Spirit living in them, they changed the world.

Yes, but that’s Jesus we’re talking about. Of course as company leaders none of us are Jesus—but we can emulate His methods and practices in many facets of life and work. In fact, Jesus told us to do precisely this—look at His example and follow it. He told His disciples, “I have set you an example that you should do as I have done for you” (John 13:15). Later in his letters, the Apostle Paul also developed leaders in the early church using this method. He wrote, “Do as I do, for I am doing as Christ did” (1 Corinthians 11:1). So, yes, in terms of leadership development it is Jesus we are talking about, and we are called and able to equip others in the same way, through time-intensive mentoring in personal, professional and spiritual development.

Failing to develop leaders may be your highest personnel cost. Hiring people is not free. There are executive search costs, hiring costs, moving, training and onboarding expenses. And people leaving your organization costs even more, because now the person leaving has to be replaced. And in the interim you’ll have someone else in that role temporarily, and that person will begin to question why he or she isn’t getting promoted instead of “filling in” for someone else yet to be hired. So jostling positions has a cost in morale and can cause others to move on and create additional openings that must be filled. A recent survey of 12,000 executives by McKinsey and Company found that 41% of executives who leave companies do so because of lack of opportunity for professional growth.[4]

Systematic leadership development might even save money for your organization. “In a recent LinkedIn survey, 40% of Gen Z workers said they’d be willing to accept a 5% pay cut for a job offering significant career growth opportunities. ‘People want to grow; they want to grow quickly,’ said Oliver Pour, a 2022 college graduate. ‘The mentorship aspect is extremely important, being able to connect with the manager or director on a more personal level.’” Since executive search will not winning results in a majority of cases, consider moving to identify potential leaders within your organization, and to begin developing them professionally and personally for their own good and for the good of your company.

[1] https://www.forbes.com/sites/forbescoachescouncil/2020/03/13/why-most-new-executives-fail-and-four-things-companies-can-do-about-it/

[2] https://www.businessinsider.com/reasons-executives-fail-2015-3

[3] https://en.wikipedia.org/wiki/New_Testament

[4] https://fortune.com/company/mckinsey/ and https://fortune.com/2022/07/25/workers-quitting-because-of-lack-of-career-advancement/