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The new road to the top
Peter Cappelli1, Monika Hamori
1Center for Human Resources, University of Pennsylvania's Wharton School, Philadelphia, USA. cappelli@wharton.upenn.edu
Harvard Business Review
|February 9, 2005
Summary
Executive careers have transformed, with today's Fortune 100 leaders being younger, more diverse, and faster-rising. Career paths now emphasize external moves and performance, shifting from traditional "academy company" training.
Area of Science:
- Business Administration
- Organizational Behavior
- Sociology of Work
Background:
- Executive career paths in large corporations have historically followed predictable trajectories.
- The composition and progression of top executives in Fortune 100 companies have been subjects of anecdotal observation.
Purpose of the Study:
- To quantitatively analyze the changes in the characteristics and career paths of top executives in Fortune 100 companies between the 1980s and 2001.
- To identify key shifts in executive demographics, career progression, and the influence of different types of firms.
Main Methods:
- Comparative analysis of executive data from Fortune 100 companies in the 1980s and 2001.
- Quantitative assessment of executive age, gender, educational background, career speed, and job mobility.
Main Results:
- Executives in 2001 were younger, more female, and less likely to have elite educations than their 1980s counterparts.
- Career progression to the top was faster, involved fewer intermediate positions, and included more inter-company moves.
- Growing firms offered advantages, while established "academy companies" provided extensive training and development.
- Female executives, though scarce, reached top positions faster and younger than men.
Conclusions:
- Significant transformation in executive careers and demographics has occurred, driven by factors favoring growth firms and external mobility.
- The traditional "academy company" model may face challenges as performance in growing firms and entrepreneurial ventures becomes more valued.
- Future executive advancement may increasingly depend on demonstrated P&L performance, potentially reversing talent flow from large to smaller firms.
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