Building Your Leadership Team: The Critical Decisions That Shape Growth

"Getting the right people in the right seats is the ultimate test of leadership." - Jim Collins

I see it time and time again in the trenches with growing SMEs. Business owners agonising over a critical decision:

Do you promote your star performer who's never led a function before? Or hire the experienced outsider with a proven track record?

You're not just filling a seat. You're making a bet on your company's future.

Do you develop your internal talent into leadership roles, or bring in external expertise to accelerate growth?

It's rarely a straightforward choice.

Recently,? I worked with a ￡30m turnover engineering firm facing exactly this challenge. They needed to strengthen their commercial leadership as a result of rapid expansion both in the UK and internationally. The choice: promote their experienced Operations Manager or hire an external Commercial Director.

Here's what we learned.

The Internal Promotion Path

• Deep business understanding
• Unquestionable commitment
• Strong cultural alignment
• Team motivation through visible progression
• Lower immediate cost

But:

• Potential capability gaps in new role
• Learning curve impact on business momentum

The External Hire Route

• Immediate expertise / experience injection
• Fresh perspective and innovation
• Proven track record in similar scenarios
• Broader industry insights

But:?

• Higher acquisition costs
• Cultural fit question and integration period

The Critical Success Factor:?

• It's not about choosing between internal or external - it's about making decisions that align with your growth strategy.

Questions you should be asking:

1. What specific capabilities do you need for this next growth phase?
2. Are you promoting out of loyalty or for capability?
3. Can you afford the learning curve of internal promotion?
4. Is "cultural fit" just code for "playing it safe"?
5. How would external expertise complement your existing team?
6. What's the real cost of delayed capability development?
7. What's the TRUE cost of getting this wrong?

Here's the brutal reality:

• Internal promotions feel safe but can stall growth
• External hires cost more, there’s the risk of the unknown,? but can transform businesses
• The wrong choice in either direction can have great consequences

We’ve all heard the story of a business’s star sales performer being promoted to Head of Sales and overall Sales performance going down, at the same time turning your ‘rainmaker’ into an overhead in a role that they’re no good at and don’t enjoy. Turning an asset into a liability.

But there's good news...

There's a systematic way to make these decisions to remove the guesswork, mitigate the risks and increase success.

Practical Next Steps:

I'm hosting a roundtable discussion next month for SME owners (￡1M-￡20M turnover) on "Strategic Team Development for Growth." We'll explore proven frameworks for making these decisions effectively.

Small group format, focusing on practical application. Previous participants have used these frameworks to achieve sustainable growth while maintaining team stability.

If you'd like to join the discussion, comment below and I'll send over the details or book a free 45-minute session with me today (link in comments) and let me help you answer your critical questions!

Because building the right leadership team isn't just about filling positions - it's about creating the foundation for your next phase of growth.

As Jack Welch said:?

"Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others."