The Horse Race Approach to Selecting a CEO
A horse race is a competition between horses, typically in which the winner is determined by the first horse to cross the finish line. It is one of the world’s oldest sports, with a history stretching back at least 4,000 years. It has evolved from a primitive contest of speed or stamina into a modern spectacle that features enormous fields of runners, sophisticated electronic monitoring equipment and massive sums of money. The basic concept remains unchanged, however: a horse that crosses the finish line wins.
The horse race approach to selecting a CEO is sometimes uncomfortable for some executives and governance observers, who worry that overt competition for the job could distract or demoralize employees and damage morale. But, when executed well, it can result in a top executive who is highly effective and may even help to identify the next generation of leaders.
Whether or not it is fair, most of the attention in a horse race goes to the early leader. This is the horse that attracts the most betting dollars, and it can create a momentum that can cause bettors to change their wagering patterns. For example, as the favorite begins to run farther ahead, bettors may switch their wagers from a long shot to the eventual winner, or they may increase their wagers on the second-place horse.
A horse’s performance in a race can be influenced by its age, sex, birthplace and previous performances. It is also influenced by the weight it must carry for fairness, and the conditions under which the race is held. For example, a race that is considered a conditions race offers the largest purses, but it may also be subject to wet weather or steep hills. These factors can make the difference between a horse finishing at the top of the field or dropping out altogether.
Another factor that influences a horse’s performance in a race is its preparation. Typically, the horse will undergo warmups before the start of the race, during which it will be observed by onlookers and jockeys or drivers to determine if it is in good condition. In addition, a trainer’s use of drugs can greatly affect the outcome of a race. It is not uncommon for veterinarians to leave the industry because they are disheartened by the way that trainers over-medicate and over-train their horses, resulting in them breaking down under the strain. These horses are then euthanized or sent to slaughterhouses, a fate that many consider unjust. A race horse that is treated with care will perform better and live longer. It is, therefore, important to provide complete context for all the numbers in a horse race so that bettors are able to make informed decisions. This can include the horse’s past track record, as well as its ability to overcome obstacles and hills. The latter is especially important, as this is where the horse will be challenged and tested the most. As a result, it is vital to study the entire history of a horse’s career, as well as its current training regimen.