A horse race is a great way to choose the best leader for your company. It defines the time frame in which the CEO will be in charge and it signals to employees that the company will be held accountable for its performance. The race also establishes a culture of leadership development. Many companies use it to groom future stars in critical roles.
In the classic horse race, two or three senior executives compete for the job of CEO. The winner is selected and becomes the next CEO. However, many directors fear that the protracted succession “horse race” will stifle business momentum.
If you’re the CEO of a company, you should think carefully about how the horse race will affect your ability to fill important management roles. There are several reasons why this might occur. For one thing, the horse may be a potential bleeder. This is a serious health issue, especially in horses.
Another reason that a horse might be a bleeder is that they might have an abnormality. This can be an unsightly problem, but can be dangerous as well. MRI scanners can be used to detect minor health problems, and thermal imaging cameras are used to detect overheating horses post-race.
One major change is that in the early 1900s, California banned wagering on racing. In 1933, a ballot measure ended the ban, and betting on races in California was reinstated. The ban was not to promote the welfare of the horse, but to stamp out a criminal element.
Other notable changes in the history of horse racing include the addition of the third prize, and the racing of fields of horses. During the Civil War, speed became a goal. As racing of fields of horses gained popularity, a fourth prize was added.
Despite these changes, the American horse race has retained its tradition. Even in the twenty-first century, it still uses the same rulebook from the British Horseracing Authority. Some national organizations may have different rules.
When considering a horse race for your company, it’s important to know the history of the race, the track, and the organization. This will help you understand the level of disruption a race might cause and how the race might fit with the organization’s overall strategy.
When choosing a horse to win, the board should be able to judge whether the winner is a good match for the organization’s needs. This is a critical element of the board’s role. After all, the organization will be paying for the race, and the winner will have to be the right fit for the company’s mission and values.
Another key advantage of the horse race is the competition for the top job. Overt competition for the top position shows the board’s faith in the organization’s leadership development process. Ultimately, it shows that the board is committed to fostering high-performing employees. Developing the top-notch leaders of the future is a critical part of the company’s strategy.