Should you appoint within or from the outside?

A thought has occurred to me following a discussion with a client – can you really find the right person to work for you?

In the last week there have been some changes at the top for large businesses – Laing O’Rourke and Persimmon. The first has seen their European commercial director and managing director of Canada exit and additions including a former financial director of a Yacht business and a former chief executive of an M&E specialist. These are two contrasting appointments – one from the sector and one not. You could look at this as odd but at the same time it brings a fresh perspective as building a building could be analysed as building a yacht – the main difference is surely the size. Persimmon has likewise gone for an appointment in the industry.

So what is the best option – insider or outsider? At the core of every job is a set of skills that should lead to success and by boiling these down you do find that certain industries are very similar, the main difference sometimes is the contacts and experience will make the job that little bit easier. But do we all really want an easy life? Working with two clients in recent times has seen appointments from outside the industry and the fresh pair of eyes on the business has highlighted areas where the strategy can be made stronger – surely this is a good thing?

You end up back at the skill base. I have frequently said that a construction or property business is unique to other industries, based simply on specific points that only tend to occur in the industry. But strip it back, you offer a service/product to a client which you pitch to them, hopefully win the work and then deliver (hopefully within budget). You then make some money. That could describe a retailer through to a property business.

It seems to me that the right person for the job is not always the most obvious person. If more businesses took a risk and broadened their search you may find a hidden gem. Go on be brave.

Feel free to contact me 0113 288 2276 or lee.a.wilkinson@uk.pwc.com if you wish to discuss this blog or anything relevant to property and construction.

Enjoy the weekend,

Lee

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