Boomerang employees

By Matthew on May 29 2024
Evergreen
A businessman in a big office

A "boomerang employee" is someone who leaves a company, often at a high level like a CEO, only to return to the same company later on in a similar leadership position. It's like throwing a boomerang: they leave, but they come back.

Some examples of boomerang CEOs include:

  • Steve Jobs: He co-founded Apple, left in 1985, and returned in 1997 to lead the company to unprecedented success.
  • Howard Schultz: The former CEO of Starbucks left in 2000 but returned in 2008 to help revitalize the company during a challenging time.
  • Louis Gerstner Jr.: He left IBM in 1993 but returned in 1997 as CEO, leading a significant turnaround of the company.
  • Michael Dell: He stepped down as CEO of Dell in 2004 but returned in 2007 to lead the company's transformation efforts.
Teaching notes

Summary of Do Boomerang CEOs Get a Bad Rap?

  • It suggests that boomerang CEOs are often unfairly criticized or given a "bad rap" despite evidence showing their effectiveness.
  • Research cited in the article indicates that boomerang CEOs tend to outperform external hires in terms of stock market returns and firm performance.
  • The piece discusses potential reasons for this success, such as familiarity with the company's culture, networks, and operations.
  • Overall, the article challenges the negative perception of boomerang CEOs and highlights their value to organizations.

Summary of The Promise (and Risk) of Boomerang Employees

  • The article explores the benefits and risks of rehiring former employees, known as "boomerang employees."
  • It discusses how boomerang employees can bring valuable skills, institutional knowledge, and a fresh perspective to a company.
  • However, the article also warns of potential pitfalls such as lingering resentment from their previous departure and challenges in integrating them back into the company culture.
  • It suggests that organizations should carefully assess each boomerang candidate and ensure their return aligns with the company's goals and culture to maximize the benefits of rehiring them.
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Discussion
Do you know any famous examples of a boomerang CEO? Who are they and have they been a success?
Do you work with any boomerang employees? How's that going? If you don't, would you like to? Why or Why not?
Do you believe in second chances? Explain your thinking.
Do you prefer to take the easy, fast path? Or do you prefer a challenge? How come?