When possible, promote from within as this keeps employees motivated and it shows there’s room for growth and opportunities. Organizations should also focus on mentoring employees by helping them discover their strengths. Additionally, promoting from within will greatly aid in creation of the culture of collaboration, effort, commitment and the overall success. Having said that it is important to note that one should be promoted based on their skills and abilities, not because of their likability.
On the other hand, there are certainly instances when organizations need to go outside to bring new leadership which will reorganize and realign dysfunctional departments or divisions. These “outsiders” don’t have any allegiances or friendships within that organization and don’t owe anything to anyone which is why at times this is the best suitable approach.