A horse race is an ancient form of competition that is now popular worldwide. Several cultures have held races, including Ancient Egypt, Ancient Greece, and Babylon. In today’s business world, this competition has evolved into an overt contest for top positions.
It is a competitive activity that many companies use as a way of choosing the most qualified candidate for their next CEO. This method has proved beneficial to companies because it signals employees that they have to do their part to achieve company success. Additionally, the process creates a culture of leadership development.
In terms of what to do after the race, the best thing for a company is to have a winning strategy. That includes taking steps to minimize disruptions and ensure that the winner is well-suited to the organization. However, some executives are uncomfortable with the horse race approach. Those who choose the winner are at risk of losing a number of key leaders to the competition. The board must also decide whether the winner is a good fit for the organization.
One important question to ask is how to best determine which horse is most likely to win a race. Having a model that could predict the ideal distances and speeds for a particular horse would be helpful. Another option is to use an app that plugs into individual horses and gives a customized racing strategy.
One of the most common strategies in horse racing is to handicap the horses. Each horse is rated based on its ability, weight, gender, and race course conditions. The handicapper then determines the odds. For instance, a horse with a 25% chance of winning a race may be at odds of four or five to one.
While horse racing is an ancient activity, it has benefited from advances in technology over the past few decades. Today, X-rays, thermal imaging cameras, and 3D printing can detect major health problems before they worsen.
The horse’s performance is also affected by its training and jockey. Trainers have access to private gallops and public race tracks. They can also track a horse’s speed and position using GPS trackers. These devices give real-time speed and position data.
Another example is the Triple Crown. This prestigious contest requires a winning horse in three of the following four races: the Kentucky Derby, the Preakness, and the Belmont. The order and spacing of these races can be quite variable.
A classic succession “horse race” pits two or three senior executives against each other. The board and top management commit to developing high performers and cultivating a culture of competition for the top job.
Although the horse race is not the only means of selecting the best leader, it does provide numerous benefits to companies. From providing a sense of accountability for company performance to helping determine the appropriate size of the executive team, the horse race has become a popular method of choosing the most qualified successor. Whether you are a corporate director, a small business owner, or an aspiring entrepreneur, the horse race is a smart way to choose the right leader.