The horse race, a contest of speed or stamina between two horses, has long been an important part of human culture. Archaeological records show that it was practiced in ancient Greece, Rome, Babylon, Syria, Egypt, and Arabia. The sport continues to attract millions of spectators to the grandstands to cheer for their favorite. It has even become a form of entertainment on the television, where fans can watch the races in their homes and place wagers online. While the basic rules of the game have changed over the centuries, the essential concept remains the same.
The most prestigious events of the year feature a number of high-stakes races with incredibly large purses. Runners are allocated weights based on their past performance, with allowances for younger horses and female horses competing against males. A horse’s chances of winning in these races can be affected by its position within the field relative to the starting gate, age, sex, jockey, and training.
These horse races are the bread and butter of the racing industry, bringing in huge amounts of money for horse owners, trainers, jockeys, and veterinarians. Behind the romanticized facade of fancy clothes and mint juleps, however, Thoroughbred horses are forced to sprint at speeds that often lead to horrific injuries and breakdowns, including pulmonary hemorrhage and abrasions on their legs. The horses are often abused with whips and illegal electric shockers, and they have been known to suffer from mental trauma as well.
While the horses race for their lives, spectators in the stands enjoy their favorite foods and sip mint juleps. They can also place bets on the race, and they can choose which horse to root for based on its name or number. While some of these bettors are hardcore daily bettors, the majority are casual visitors who may not have a specific horse in mind as they watch the race. A popular horse, like Seabiscuit, could draw crowds that would otherwise have been indifferent to the event.
Companies that employ the horse race strategy for selecting their next CEO encourage a competition between several well-known candidates for the job. While some governance experts argue that this type of succession “horse race” may lead to a loss of momentum, others believe that it can produce exceptional leaders.
In some cases, a company’s board will decide to bypass the traditional horse race approach and select a new CEO directly from existing senior executives. These “all-in” succession processes are usually accompanied by rigorous assessments of leadership capabilities and an intense, time-limited campaign that includes public forums and interviews with potential candidates. These strategies can be a powerful tool for ensuring that the next chief executive is ready to take on the challenge. But they must be paired with robust management development programs that nurture the talents of top executives and groom them for future leadership roles. This is particularly true for smaller companies that don’t have the luxury of a lengthy CEO horse race.
