Fast Talk

If external leaders understand the unique pressures, constraints and drivers of the relevant marketplace, then generally I would suggest they have a better chance of pushing a company forwards, however that may be measured.

Having said that, there is always the risk of factors, often in the macro-environment, which will hamper traditional measures of success irrespective of the provenance of the new leader.

Mega-corporations, GE, Citi and so forth, will often have more success promoting from within due to the massive complexity of those organisations.

The dangers for any new leader, whether internal or external, will be to walk the line between promoting business as usual and forcing through radical change in order to stamp their authority on an organisation.

Moderation, as in so many things, is often key to success.

Depends on the company, situation, and person entering the leadership position. A leader grown from within will have intimate knowledge of how the company works and good feel for the "spirit" of the company.
Sometimes, though, a new perspective is needed to shake things up and get the company moving forward, again. A leader from outside the system will not be influenced by any negative group dynamics that may exist within the system.

Better leaders come from an
eclectic way of life. Look
at the current President of the
United States. How much more
effective would he have been
if he would have brought life
experience to the White House
that included living as most
other Americans live?

Depends on the type of situation and corporate culture, etc. In certain scenarios, a Continuum Leader may come from the inside (as they are adept with the status quo, as is with milking a cash cow business unit) . . . while in others, a Transformational Leader may need to come from the outside to "shake things up" and disrupt the status quo.
etc., etc., etc.

Joshua Letourneau
Mg Director, LG & Associates Search / Talent Strategies
BLOG: www.lgexec.com

A leader is a type of person. some of the traits are inborn and others are taught. but there are leaders both inside and outside of any system.

The best leader is the one who recognizes when outside influence is required to change.

System, is that the corporation? Not sure. I think we are all born with leadership abilities in a particular area of our lives. Usually it is developed over time with the help of other leaders who see the potential and encourage it.

Bad question.

Leaders are both born and developed. Consequently, they can come from anywhere.

Leaders who have grown with and learned the system, would prove better leaders than those from outside. However, if the outsider has sufficient skill and knowlegde of the system, bringing fresh, innovative ideas to greatly benefit the same, then it may be worth a try in letting them lead.

My first job was fastfood. People rose up among the crew and became managers, and people were hired from the outside as managers. Crew members would follow orders from whoever was in charge, but they more "heartily" followed orders from those who rose up among them. However, those inside leaders did not demand as much from the crew as outside leaders did, and they also worked more individually. Outside leaders were more efficient(and disliked). My personal perception: insiders lead better, but outsiders manage better.