In tough economic situations companies tend to give a makeover to their business by making changes in human as well as technical resources. Replacing a CEO may seem to be a feasible idea as far as making changes in business organizations are concerned but bringing a new CEO does not always mean that he would be able to deliver the best performance immediately. In fact it has been seen that new CEOs prefer to replace certain employees who they think are not at par with the requirements of the company. It is therefore better to know who CEOs prefer to fire and why.
CEOs who are hired from outside generally take some time to cope with the practices of the institution. However, in order to transform the day to day operations it is better to hire an outsider, because at times business organizations need to have a different perspective. It is to be kept in mind that CEOs hired from outside prefer to replace most of the employees in order to increase the efficiency of the organization. Researches show that outside CEOs generally tend to replace people entrusted with the task of maintaining the technical resources, legal procedures, sales and chief brand officers. If you belong to such a group you have to be extra careful while dealing with your new CEO.
It is to be kept in mind that CEOs from outside are more effective than the internal one because a fresh look and different perspective always make it better for the organization. though new CEOs from outside may take a little longer to get accustomed to the practices of that particular organization, sooner or later they would like to place their trusted people in key positions. This may require them to hire new people from outside, but they are surely going to fire some who they think are incompatible.