News, Report
FTSE 100 – 2024 CHRO/CPO move analysis
Are FTSE 100 companies choosing growth mindset over experience?
A recent data analysis of FTSE 100 Chief People Officer appointments in 2024 hints at a fascinating shift: half of the appointees had not previously held UK Plc executive roles, and a third were internal promotions. Compare this with 20% in 2023 of appointments without UK Plc experience in 2023 and the question starts to form: are companies beginning to prioritise a growth mindset over historical experience? In a world where the only certainty is uncertainty and challenges span the geopolitical, economic, societal, regulatory and technological, it seems some organisations are increasingly valuing adaptability and potential over a proven track record in similar roles.
The concept of growth mindset which, at its most fundamental is the theory that capabilities can be developed through dedication, effort and adaptive learning strategies, fosters a love for learning and resilience, which are crucial in navigating the ever-changing business landscape.
Leathwaite has introduced Mindset Advantage (a psychometric assessment based on growth mindset research) to its assessment process precisely because we have a mounting body of evidence that, through appointing leaders who embody this mindset, companies are better equipped to innovate and respond to challenges.
Are we witnessing the beginning of a broader shift towards valuing skills and growth potential over proven executive experience? Does the idea that the challenges of yesterday may so little resemble those of tomorrow that mean that the laurels of prior success count for less? Or is this a flash in the pan, a false positive from a small sample size?
Internal promotions and cross industry moves
The number of internal appointments (a third) may point to a favouring of organisational knowledge in an environment where executives are under immediate pressure drive change and the time needed to build relationships can be punitive, or it could point to stronger and more robust succession planning and leadership development; or both.
All but one of the external hires were cross-sector (albeit some of those appointed had relevant sector experience earlier in their careers).
