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CEO Career Breadth Creates Novel Strategies

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Companies thrive or die off their ability to find the right type of leadership to manage their daily operations. Investors would be wise to consider the background and depth of experience when hiring their next CEO. A study of CEOs at 250 Fortune companies found that CEO career variety is positively associated with firm-level novelty that offers strategic dynamism and strategic distinctiveness that can help firms change and grow (Crossland, et. al. 2014).  Strategic novelty is the ability of CEOs to think out of the box and beyond the medium of traditional strategies of those firms within their field. Instead of using only the same strategies, as other firms, they often seek out alternative strategies that could potentially have more lucrative outcomes. Novelty can make the difference between a market leader and market follower. Career breadth is the multiple industries and places that people have worked over their careers. A CEO who worked in a single industry throughou