The Outsiders - Hiring a CEO from Outside the Industry Might Be the Bold Move Your Company Needs

When it comes to picking a new CEO, most boards reach for the usual suspects: executives with deep industry experience, often from within the same company or sector. That approach can feel safe, familiar candidates, known resumes, and minimal learning curves. But sometimes, playing it safe is the riskiest move of all. 


Two bold CEO appointments, Lou Gerstner at IBM in 1993 and Luca de Meo at Kering (home to Gucci, Saint Laurent, and Balenciaga) in 2025, offer compelling lessons in why bringing in an outsider can not only revitalize a struggling company but completely redefine its future. 

When a company is facing a critical inflection point, whether due to market shifts, internal stagnation, or a crisis of identity, looking beyond the usual talent pool may be exactly what’s needed. 


 

The IBM Pivot: Why the Best Choice Isn’t Always the Obvious One 


When IBM was on the brink of collapse in the early 1990s, the board had every reason to hire a tech industry insider. The company’s mainframe business was declining, and pundits believed the only way forward was to break it apart. The business media circled around technologists like John Sculley (Apple), Ben Rosen (Compaq), and George Fisher (Motorola) as obvious successors for IBM. It seemed clear: IBM needed someone with computer experience. 


Instead, the board chose Lou Gerstner, a marketing-focused executive with no background in tech. He had led American Express but had never worked at a tech firm. To most, it seemed like a wild bet. 


But Gerstner had what IBM truly needed: a clear-eyed view of business fundamentals, customer orientation, and the courage to challenge entrenched thinking. Within weeks, he diagnosed IBM’s core problem - not a dying mainframe business, but a bloated cost structure and poor pricing strategy. He slashed costs, dropped prices, and pivoted the company toward software and services. The result: IBM swung from an $8 billion loss to a $3 billion profit in under two years. The stock doubled in less than three. 


The takeaway? Gerstner succeeded not because he understood technology better than the insiders, but because he saw the business more clearly. His outsider lens became his greatest asset. 


 

Kering’s Gamble: When a Fashion House Needs a Fixer 


Fast-forward to 2025. The luxury giant Kering, home to Gucci, Saint Laurent, and Balenciaga, is flailing. Once a cultural powerhouse, the company has lost over 60% of its market value in two years. Gen Z is turning away. Investors are panicking. Gucci, the group’s crown jewel, has lost its sparkle. Leadership is uncertain. The traditional luxury playbook isn’t working. 

Enter Luca de Meo,  a car executive. 


Best known for his turnaround successes at Fiat, SEAT, Volkswagen, and most recently Renault, de Meo is a brand strategist, not a fashion insider. But in an unexpected move, Kering’s longtime CEO François-Henri Pinault tapped him as his successor. 

To some, the decision was shocking. To others, it was exactly what Kering needed. 


Like Gerstner, de Meo is a seasoned operator with a history of revitalizing stagnant brands. He brought the Fiat 500 back to life. He revived Renault’s design appeal. And, importantly, he understands how to manage complexity at scale, just like a fashion conglomerate demand. 

Pinault explained the decision simply: “His experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me that he is the leader I was looking for.” 


In other words, Kering isn’t betting on fashion expertise. It’s betting on vision, brand building, and courage,   qualities that transcend sectors. 

 


What Great Boards Understand About CEO Selection 


These two stories - IBM in 1993 and Kering in 2025 - share a deeper lesson about board behavior: great boards don’t just look for experience. They look for fit, capability, and contextual leadership. 


According to governance experts, the best board members do four things related to CEO selection that others often overlook: 

  1. Clarify essential qualities: They define the two or three critical capabilities required to lead the company now, not a generic list of leadership traits. 
  2. Stay open-minded: They don’t default to insiders or industry lifers. They consider external candidates who might bring unconventional strengths. 
  3. Understand true fit: They go deep to match the candidate’s strengths to the business’s unique challenges - not just resume credentials. 
  4. Accept imperfections: No candidate is perfect. Great boards don’t let minor gaps outweigh major potential. 


The IBM board, for example, didn’t get fixated on Gerstner’s lack of tech experience. They focused on his customer acumen, strategic thinking, and execution muscle. Kering is doing the same with de Meo: prioritizing brand vision and organizational agility over fashion-world familiarity. 

 


Why Outsiders Sometimes Make the Best Insiders 


There’s a myth that only someone “from the industry” can understand a company’s product or sector. But often, industry veterans are too close to the way things have always been done. They bring assumptions, biases, and sometimes too much reverence for tradition. 


Outsiders, on the other hand, are unencumbered. They ask disruptive questions. They bring fresh playbooks. They’re more willing to cut sacred cows or challenge failing strategies. And when paired with a strong leadership team that fills in any gaps, they can create transformative results. 


In both IBM and Kering’s case, their challenges weren’t about industry-specific knowledge. They were about strategic misalignment, outdated business models, and fading relevance. And those are problems a great leader, regardless of background, can solve. 


 

So, When Should You Look Outside? 


Hiring an outsider isn’t always the right call. But it can be the smartest one in situations like: 


  • An identity crisis (like Kering): when the company no longer knows who it is or how to connect with a new generation of consumers. 
  • A deep turnaround (like IBM): when the internal culture is stuck and bold change is needed. 
  • A strategic pivot: when the business must evolve quickly, and current leadership lacks the skills or courage to get there. 
  • A stagnant succession pool: when the internal candidates reflect the past more than the future. 

 


Bold Moves Create New Futures 


Both Lou Gerstner and Luca de Meo walked into the industries they weren’t born in. They remind us that leadership is less about where you come from, and more about how you think, act, and lead. 


Boards that have the courage to look outside their industry not only to widen the talent pool - but they also give their companies the best shot at meaningful transformation. 

In moments of crisis or reinvention, you don’t need more of the same. You need someone who sees things differently and has the guts to act on it. 

New Opportunity: Chief Executive Officer

By Effie Zimmerman • January 29, 2026
Chief Executive Officer ABOUT THE COMPANY EC Electric is an innovative electrical contracting firm dedicated to powering lives across various sectors, including mission-critical AI data centers, semiconductor chip manufacturers, industrial, federal work, commercial, and renewable energy projects. With a commitment to providing high-quality electrical solutions, the company specializes in cutting-edge technologies and sustainable practices. Known for its robust service offerings, including electrical construction, maintenance, and energy management, EC Electric stands out in the marketplace by focusing on safety, efficiency, and customer satisfaction. This $500 million-a-year company is part of the E-J Group of Companies across the nation, celebrating our 127th year of private ownership. Our mission is to create a brighter, more electrified future while upholding our values of integrity, safety, quality, equity, fulfillment, and profitability. ABOUT THE POSITION As the Chief Executive Officer , you will be the visionary leader of EC Electric, steering the company's strategic direction and operational efficiency to achieve sustainable growth and innovation in the electrical contracting industry. You will collaborate with the executive team, employees, and stakeholders to enhance our reputation as a leading provider of electrical services and solutions, ensuring we remain agile and responsive to market demands. DUTIES & RESPONSIBILITIES Strategic Leadership: Develop and articulate a clear vision and strategic plan that aligns with EC Electric's mission to drive profitability and market expansion. Initiate strategic partnerships and alliances that leverage EC Electric's capabilities in renewable energy and advanced electrical systems. Operational Excellence: Oversee operational processes, ensuring the execution of projects aligns with EC Electric's commitment to safety, quality, and timely delivery. Utilize data-driven insights to improve operational efficiencies and manage resources effectively across all business units. Innovation and Sustainability: Drive the adoption of innovative technologies and sustainable practices within the company to enhance service offerings and reduce environmental impact. Encourage a culture of innovation, empowering teams to explore new solutions that meet the changing needs of clients in a dynamic industry landscape. Stakeholder Engagement : Cultivate long-term relationships with clients, contractors, and community partners to enhance visibility and reputation in the industry. Represent EC Electric in industry associations and public events, positioning the company as a thought leader in electrical contracting and energy solutions. Financial Management: Ensure fiscal responsibility by overseeing budgeting processes, expense management, and financial forecasting to meet the company’s growth objectives. Identify opportunities for cost efficiencies and revenue generation through new service offerings and market penetration strategies. Workforce Development: Promote a positive and inclusive workplace culture that prioritizes employee engagement, safety, and professional development. Sustain and expand training/mentorship programs to develop future leaders within the organization and ensure a skilled workforce ready to tackle evolving industry challenges. Compliance and Governance: Ensure compliance with all industry regulations, safety standards, and environmental practices, maintaining EC Electric’s strong reputation for integrity and excellence. Implement risk management strategies to safeguard the company’s assets and sustain its operational integrity. QUALIFICATIONS Bachelor’s degree in business administration, engineering, or related field; MBA or relevant advanced degree preferred. 15+ years of experience in senior leadership roles within the electrical contracting or related construction industries. Proven ability to drive business growth and operational success in a competitive environment. Strong analytical and problem-solving abilities, with a focus on data-driven decision-making. Excellent communication and interpersonal skills, adept at fostering collaboration and motivating teams. Advantages of Working at EC Electric: Leading electrical contracting organization focused on innovation and sustainability. Commitment to employee development and career advancement opportunities. Comprehensive compensation and benefits packages, including health and wellness programs. Supportive corporate culture values community engagement and social responsibility. Opportunity to work on high-impact projects that shape the infrastructure of communities. Interested in Learning More? 180one has been retained by EC Electric to manage this search. If interested in learning more about the opportunity, please contact Nicole Brady at 503-699-0184 or via email at nicole@180one.com . EC Electric is an Equal Employment Opportunity Employer and ensures equal employment opportunity for all persons without discrimination based on race, color, religion, sex, sexual orientation, national origin, age, disability, marital status, citizenship, or any other characteristic protected by law. Physical Demands: The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. While performing the duties of this job, the employee is regularly required to use their hands and talk or hear. The employee is frequently required to stand, walk, sit, reach with hands and arms; climb or balance, and stoop, kneel, crouch, or crawl. The employee must occasionally lift and/or move up to 50 pounds. Work environment: The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. This includes the ability to have close (clear vision 20 inches or less) and distant vision (clear vision 20 inches or more), Depth Perception (three-dimensional vision, ability to judge distances and spatial relationships); Ability to Adjust Focus (ability to adjust the eye to bring an object into sharp focus), and the ability to see color. The noise level in the work environment can be quiet, moderate, or loud.

The Cost of Hesitation: Why Delaying a Leadership Change Quietly Destroys Value

By Greg Togni • January 12, 2026
Few decisions carry more weight, or more emotional friction, than upgrading management. Whether in a private equity–backed business or a closely held private company, leaders know the decision matters. They also know it’s uncomfortable. Incumbent executives may have helped close the deal, built the business, or earned deep loyalty from employees and customers. In that context, waiting can feel prudent, even humane. Yet across ownership structures, cycles, and industries, the evidence points in one direction: delaying action on leadership misalignment quietly erodes value long before performance visibly breaks. What the Data Consistently Shows Research across management transitions paints a consistent picture. Roughly half of PE-backed companies replace the CEO within the first two years of ownership, with many changes occurring in the first year. Studies of executive transitions show failure rates between 30% and 40% in the first 18 months, most often driven not by incompetence but by misalignment- on mandate, pace, or priorities. The lesson is not that boards are impatient. It’s that leadership fit matters more than familiarity, and a misfit rarely corrects itself with time. The Most Expensive Period Is After Doubt Sets In By the time a board or ownership group agrees that a leadership upgrade may be needed, value erosion is often already underway. Growth initiatives slow. Decision-making becomes cautious. Reporting grows heavier as leaders explain results instead of driving them. High performers sense uncertainty and begin to disengage. In PE-backed environments, this dynamic plays out faster and with fewer buffers. But private companies experience the same slow bleed, just over a longer horizon. The “One More Quarter” Fallacy “Let’s give it one more quarter” is one of the most expensive sentences in governance. Boards and owners often justify delay by pointing to an initiative in flight, system implementation, or temporary market headwinds. But studies of executive performance show that trajectory matters more than absolute results. If clarity, momentum, and conviction are not improving, time rarely fixes the issue. A common pattern: leadership change is debated for several quarters. When a new executive finally steps in, they make decisive moves within 60 to 90 days, moves that had been discussed, analyzed, and deferred for a year. The opportunity cost of that delay is real, even if it never appears cleanly in the P&L. Missed Windows Are Permanent Losses The most dangerous cost of waiting is not short-term underperformance; it’s a missed opportunity. In PE-backed companies, similar windows appear around add-on acquisitions, operational transformations, or pricing resets. A capable but misaligned leader can miss those windows by moving too slowly or pulling the wrong levers. Once missed, those opportunities rarely reopen on the same terms. Loyalty Is Expensive, But So Is Delay Many delayed leadership changes stem from understandable loyalty: to founders, long-tenured executives, or leaders who were instrumental during diligence or early growth. But fiduciary responsibility ultimately outweighs emotional equity. The most effective boards separate gratitude for past contributions from clarity about future requirements. They also recognize that earlier action is usually kinder. Early transitions allow for controlled narratives, thoughtful role changes, and dignified exits. Late-stage changes tend to feel abrupt, personal, and destabilizing. A Simple Test for Owners and Boards One question cut through most debates: If we were hiring for this role today, knowing what we now know, would we make the same choice? If the answer isn’t an unambiguous yes, delay rarely improves the outcome. Another signal is how leadership discussions consume time. When meetings shift from strategy and growth to coaching, shielding, or compensating for leadership gaps, the decision has often already been made, just not acknowledged. Why Smart Owners Explore the Market Early High-performing PE firms, and increasingly, sophisticated private owners, often explore the executive market before a final decision is reached. This isn’t about undermining management; it’s about sharpening judgment. Seeing the caliber of available talent reframes the question from “Can this work?” to “Is this the best we can do?” In many cases, an external perspective provides clarity faster than another quarter of internal debate. Timing is Everything Upgrading management is never easy. But the evidence, data, deals, and lived experience are clear: indecision is rarely neutral. The organizations that consistently outperform aren’t the ones that change leaders most often. They’re the ones who change them on time. And in a world of compressed timelines, competitive markets, and rising expectations, timing isn’t just a leadership issue; it’s a value creation issue.

New Opportunity: General Counsel

By Effie Zimmerman • January 5, 2026
General Counsel ABOUT THE COMPANY A-dec is the premium leader in the dental equipment industry, designing and manufacturing products that span dental chairs, lights, handpieces, furniture, air management, infection control, and delivery systems found in dental offices and operatories. With over 1300 employees and headquartered in Newberg, Oregon, A-dec’s familial culture and values have been attributed to their commitment to the Newberg community and its employees through various investments and programs. ABOUT THE POSITION The General Counsel (GC) will manage legal matters for the organization and affiliated entities, including all litigation defense coordination, intellectual property, business development, contracting, unfair trade practices, anti-trust, corporate governance, and the coordination of legal matters managed by outside counsel. GC will provide legal advice to management, provide counsel on negotiating corporate transactions, and prepare related documentation. Provide strong leadership, guidance, and pragmatic business acumen, recognizing the business consequences of legal advice. GC is a strategic and innovative thinker who can develop and articulate a clear understanding of the company’s strategy from all perspectives and find creative solutions to complex legal problems with a strong ability to balance legal and business risk. DUTIES & RESPONSIBILITIES Corporate Governance & Strategy Serve as a trusted legal advisor to the executive leadership team on corporate governance and risk management. Oversee corporate governance matters, including board support, entity management, and compliance with applicable corporate laws. Support business development, joint ventures, and other strategic transactions from due diligence through integration. Board meeting preparation and serves as acting Secretary in Board of Directors’ meetings and prepares all necessary Board and Shareholder documents. Regulatory & Compliance Partner with corporate regulatory leaders to ensure compliance with U.S. and international laws and regulations applicable to medical/dental devices, manufacturing, quality systems, and global distribution. Interface with corporate regulatory leaders to manage regulatory risk and ensure compliance. Develop, implement, and maintain company-wide compliance policies and training programs. Commercial & Contract Management Draft, review, and negotiate a wide range of commercial agreements, including supplier, distributor, licensing, manufacturing, and customer contracts. Support global sales and supply chain operations with practical, business-focused legal guidance. Establish contract standards and processes to improve efficiency and risk management. Intellectual Property Oversee protection, management, and enforcement of the company’s intellectual property portfolio, including patents, trademarks, and trade secrets. Work with internal teams and external counsel on IP strategy aligned with product development and global expansion. Litigation & Risk Management Manage all litigation, disputes, and claims, including product liability and commercial matters. Select and manage outside counsel, controlling costs and ensuring high-quality outcomes. Oversee risk mitigation strategies. Legal Operations Build and lead the legal function, including internal staff and external legal resources. Develop budgets, manage legal spend, and improve legal operations and processes. Foster a culture of ethics, compliance, and sound risk judgment across the organization. MINIMUM QUALIFICATIONS Knowledge, Skills and Abilities Strong business acumen with the ability to balance legal risk and commercial objectives. Deep understanding of regulatory, compliance, and quality requirements in a manufacturing environment. Excellent negotiation, communication, and leadership skills. Practical, solutions-oriented mindset with high ethical standards. Ability to work collaboratively with business clients and proactively become involved in business initiatives. Ability to interact effectively with associates at all levels in all businesses across North America and in countries where A-dec has a presence. Ability to interface and negotiate with legal representatives at dealers and suppliers. Ability to communicate clearly, concisely, and effectively. Good listening skills. Skilled at working independently and leading critical matters to conclusion with little supervision, while coordinating with other attorneys and stakeholders. Demonstrated ability to quickly establish trust and rapport within A-dec. Strong leadership skills to manage projects and influence decisions, with the ability to be persuasive in reinforcing the best interests of the company. Understands business implications of decisions. Strong analytical, organizational, and time management skills. Travel, including internationally as needed, to perform the duties of the job. Expert legal document drafting and research skills. Education and Experience Requires Juris Doctor (JD) from an accredited law school. Must be a member of the bar in good standing; admission to the Oregon State Bar preferred. 10+ years of legal experience in a relevant law firm or corporate setting. Experience as an Associate, Assistant, or General Counsel is preferred. Experience in medical devices, pharmaceuticals, or other healthcare-related experience is desirable. Experience in a manufacturing business is preferred. Experience in a global business with international distribution is preferred. Interested in Learning More? 180one has been retained by A-dec to manage this search. If interested in learning more about the opportunity, please contact Lisa Heffernan / 971.256.3076/ lisa@180one.com .
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