By Michael Birshan, Thomas Meakin, and Kurt Strovink of McKinsey&Company
Holding a functional leadership role isn’t the most direct route to becoming a CEO.
Fewer than 15 percent of the CEOs in a data set we’ve been scrutinizing for more than a year ascended to the corner office after serving as a functional leader such as chief financial officer, chief marketing officer (CMO), chief strategy officer, chief technology officer (CTO), or general counsel.
Nearly all the rest had been operators—CEOs at other companies, leaders of major operating divisions, or chief operating officers.
The case for a functional CEO is strongest when his or her expertise is core to a company’s critical business challenges.
Organizations in the midst of a major digital transformation might benefit from a CTO in the top spot, and a CMO-turned-CEO could be just what the doctor ordered for a company rethinking its brand portfolio.
Similarly, companies undertaking a growth plan based on M&A or a major cost-reduction effort often look to CFOs.
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Source - McKinsey&Company