Leadership at Scale: When Expertise Travels Across Sectors
I remember working with a client—one of the world’s largest software development companies—during their search for a new CEO. The core debate within the board was familiar: internal promotion versus external hire.
At the time, the company’s culture was seen as insular. Leadership had grown from within for decades, reinforcing deep expertise but limiting exposure to new operational models and leadership philosophies. A faction of the board believed this internal focus had contributed to stagnation.
What stood out was that two of the external candidates weren’t from the same industry at all. They came from sectors that, on the surface, had little in common with software. The fact that these leaders were being seriously considered reflected a growing recognition—success at scale in one sector could translate into another.
This wasn’t just about finding someone with the right skills. It was about injecting new energy, new perspectives, and a leadership style shaped by different operational challenges and market pressures.
Why This Is Happening
Today, AI-driven search firms and platforms like LinkedIn have transformed the way executive talent is identified and sourced. The market for top leadership is no longer confined to familiar networks or industry pipelines. Boards and hiring committees now have the tools to reach beyond their walls and evaluate leaders from industries they may not have considered in the past.
This shift reflects more than just broader search capabilities—it signals a change in mindset.
For years, the assumption was that industry experience trumped all else. Leadership at the highest levels was viewed through the lens of sector expertise and domain familiarity. But as industries converge, markets evolve, and technology reshapes operations, companies are realizing that fresh thinking and diverse experience are as valuable as deep knowledge of their specific field.
A great example of this shift is Doug Field.
Field led the development of Tesla’s Model 3 as Senior VP of Engineering, bringing critical automotive expertise to the EV market. He later returned to Apple to work on Project Titan, Apple’s electric car initiative. But in 2021, Field left Apple to join Ford as Chief Advanced Technology and Embedded Systems Officer, later expanding his role to oversee Ford’s entire EV and digital systems strategy.
Field’s career spans Silicon Valley and Detroit, blending deep automotive knowledge with tech-sector innovation. His ability to navigate both worlds shows how cross-sector expertise is increasingly viewed as a strategic advantage.
Sector Knowledge vs. Organizational Quality
What’s driving this shift is the growing belief that functional expertise (in operations, finance, or product development) transcends industry boundaries. While sector experience still holds weight, the quality of the organizations leaders come from is becoming a more powerful indicator of future success.
- If someone spent 10 years at Amazon, hiring managers assume they bring operational rigor and logistical mastery.
- A candidate with Apple or Tesla experience carries the reputation of product excellence and attention to detail.
Where you’ve worked is now as important as what you’ve done.
It’s a shift that rewards leaders from high-performing organizations—where the culture and systems consistently sharpen talent, regardless of the industry.
Blending Internal Growth with External Talent
Despite this movement toward cross-sector hires, organizations are careful to preserve a balance.
At the VP and SVP levels, external hires bring new ideas and fresh strategies, but companies rarely abandon their internal pipelines.
Why?
Because deep operational knowledge—the kind built over years of navigating the company’s systems—is irreplaceable.
The most effective companies protect a ratio of internal vs. external talent:
- Internal leaders ensure stability and maintain the organization’s identity.
- External hires graft in fresh perspectives, strengthening the mix and challenging entrenched thinking.
It’s not either/or. It’s recognizing that the best teams blend both.
Hiring from outside isn’t about replacing what’s there. It’s about grafting new stock onto existing roots—much like winemakers do to improve flavor and resilience.
Even at the C-suite level, this holds.
Boards may lean toward internal candidates to preserve institutional knowledge, but they also know the value of injecting new DNA at the right moments.
The Role of Talent Farms
This shift is fueling another trend—the rise of talent farms.
Certain organizations consistently produce leaders known for operational excellence, problem-solving, and resilience.These talent farms are recognized globally:
- Amazon for supply chain, logistics, and scaling.
- Apple for product innovation and customer experience.
- McKinsey and BCG for strategic insight and analytical rigor.
Increasingly, these organizations are supplementing—if not surpassing—the signaling power that elite universities once held.
Make no mistake—a degree from Yale, Stanford, or MIT still opens doors. The intellectual rigor, networks, and prestige from these institutions continue to matter at every level of leadership. But the market is shifting.
If you’re sitting on a hiring committee and need to choose between a candidate with a degree from an Ivy League schooland another with five years of experience scaling operations at Tesla, the latter increasingly carries more weight—especially at the executive level.
The difference is practical:
- University signals potential.
- Talent farms validate performance.
The best résumés increasingly feature both. But if you have to pick just one line, more often than not, boards will lean toward the proven track record over the academic pedigree.
What This Means for Executives and Boards
For boards and executive hiring committees, the message is clear:
- Don’t limit your search to one sector. The best candidate may come from a completely different industry.
- Protect institutional knowledge by nurturing internal talent—but know when to graft in external leaders to elevate performance.
- Look for candidates from high-performing organizations, regardless of the sector.
For executives:
- Your skills can travel. Sector boundaries are dissolving.
- Your track record at elite organizations matters.
- Be ready to apply your expertise across industries.
Is Your Organization Ready for the Shift?
As leadership talent becomes more fluid across industries, companies that recognize and embrace this shift will have the advantage.
If this resonates, let’s connect and explore what’s next for your leadership strategy.
A quick conversation can reveal whether your organization is evolving with this new reality or being left behind.
