Consider an internal candidate for CEO, SMRT
Letter from James Chia Wee Tiong


SMRT Corporation's search for a new chief executive officer is a difficult task. The pool of potential CEO talent is small, compounded by the specialist nature of running Singapore's main rail operator.

While not the case for SMRT's recently-departed CEO, a common practice of government-linked companies here is to appoint high-level civil servants, moving to the "next stage" of their careers, as CEOs.

These may or may not have direct industry expertise in the company they are to helm.

Management skills can and should be portable across industries. CEOs who come from outside the industry bring fresh perspectives to the job.

But these same CEOs will find it hard to truly understand the nuts and bolts of running the company and the problems on the ground.

Specialist managers would necessarily be hired to oversee specific functions, but their jobs would be made easier by a CEO who has risen through the ranks and understands the issues that his/her staff face.

SMRT would do well to consider as potential CEO candidates senior managers within the organisation or the transport industry.

Should these be identified and available, they would bring in unrivalled knowledge of the company and industry, which could only have been gained through on-the-job experience, which no amount of "management walkabouts" can achieve.

With increased ridership and its demands on SMRT's rail network, an internally-sourced CEO would be better placed to manage the company to meet the expectations of shareholders and commuters.

SMRT could also consider including in its assessment criteria whether its CEO candidates take the train to work. This would give a much-needed perspective to the job at hand.



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