{"id":2252,"date":"2024-05-23T09:16:39","date_gmt":"2024-05-23T08:16:39","guid":{"rendered":"https:\/\/thewestpeak.com\/?p=2252"},"modified":"2024-05-23T09:51:06","modified_gmt":"2024-05-23T08:51:06","slug":"big-debate-does-ceo-age-really-matter","status":"publish","type":"post","link":"https:\/\/thewestpeak.com\/en-us\/big-debate-does-ceo-age-really-matter\/","title":{"rendered":"The big debate: does CEO age really matter?"},"content":{"rendered":"

The big debate: does CEO age really\u00a0matter?<\/h2><\/h2><\/div>

Is leadership an inherent skill that people are born with or are age and experience still the most effective indicators of future success at the helm of a company? Two experts weigh in<\/p>\n

Traditional wisdom might have suggested that years of management experience and a steady climb up the corporate ladder\u00a0are prerequisites for effective leadership. But the emergence of a younger cohort of fresh-faced CEOs has prompted the delicate question: does age really\u00a0matter?<\/p>\n

For the first time in years, the average age of a chief executive is falling. Last year, it dropped from 56 to 53, according to consultancy Korn Ferry \u2013 a small but significant change given there has been very little movement on this in previous\u00a0years.<\/p>\n

At the same time, a growing number of leaders are being appointed to the top job without prior CEO experience. Research by management consulting firm Russell Reynolds found that, of the many new CEOs in the FTSE 100 in 2023, 88% were first-timers; a trend that signals the\u00a0changing face of leadership<\/a>\u00a0where diversity of thought and experience are valued above years spent in the\u00a0job.<\/p>\n

But while age may just be a number \u2013 it still carries some weight. The fact that many of the leaders at the world\u2019s most established companies have at least a few decades of experience under their belt suggests that the wealth of knowledge gained from navigating challenges, making tough decisions, and overcoming obstacles, is still important. Apart from the odd exception, it is still rare for those in their 20s and early 30s to be appointed CEO unless they have created the business as a founder or inherited it from a family\u00a0member.<\/p>\n

As companies seek insurance against volatile and uncertain times, they must decide: is good leadership a skill people are naturally more inclined to \u2013 or is experience still the most effective indicator of future\u00a0success?<\/p>\n

A CEO with battle scars from failures is more likely to be able to adapt to changing circumstances<\/h3>\n
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Ben Stocken, Chief Executive commented;<\/div>\n

“Being a twenty-something CEO means you\u2019ve got to gain two decades of business experience in next to no time. Like creating a decent red wine, this takes time and can\u2019t be rushed. It\u2019s probably why most successful CEOs are found from the middle ground, where they are considered \u2018just right\u2019.<\/p>\n

A paper in\u00a0The Harvard Business Review<\/em><\/a>\u00a0found that the average age of a successful startup founder is 45, backing up this \u2018middle ground\u2019\u00a0theory.<\/p>\n

Communicating a vision for investors, clients and employees to buy into is arguably the most important skill a CEO needs. Having more experience of working life helps shape that ability. Seasoned CEOs may be more likely to offer a long-term, risk-averse strategy. In contrast, their younger peers may be more inclined to take risks and pursue a disruptive approach in search of innovation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Younger CEOs may bring fresh perspectives, energy, and a willingness to challenge traditional ways of thinking, but they often lack the experience necessary to lead effectively.<\/p>\n

The role of a CEO demands a vast array of skills, from strategic decision-making and risk management to stakeholder management and crisis leadership. Younger leaders may struggle to anticipate potential risks or respond effectively to unforeseen challenges. This inexperience could lead to costly mistakes, missed opportunities, or poor judgement calls. They may also find it challenging to navigate the complexities of organisational politics, manage diverse stakeholder interests, and maintain a steady hand during turbulent times.<\/p>\n

A CEO with battle scars earned during failures and setbacks is more likely to be able to anticipate potential pitfalls, mitigate risks, and adapt to changing circumstances than their less experienced counterparts.\u00a0They are also more likely to have developed a professional network that can open doors to valuable resources, strategic partnerships, and insightful industry connections.<\/p>\n

This wealth of connections and the ability to tap into a bank of \u2018what not to do\u2019 shortcuts can be a significant competitive edge, especially in highly dynamic or competitive industries.”<\/p>\n

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