August 5, 2025
Why Leadership Skills Trump Industry Experience
I recently completed a search for a general manager at a large medical device company. One of the candidates had never worked in the industry. Despite that apparent disadvantage, she quickly emerged as the frontrunner. Why?
Because she had something more valuable than industry experience: exceptional leadership ability.
While other candidates checked all the traditional boxes—medical device background, similar company size, relevant functional experience—this candidate stood out for three critical qualities that matter more than any resume line item.
The Leadership Trifecta
First, she had raw intelligence. She could quickly grasp complex business problems and see connections others missed. During interviews, she asked questions that demonstrated she understood the business challenges better than candidates with decades of industry experience.
Second, she possessed exceptional business savvy. She understood how businesses work at a fundamental level—P&L dynamics, operational leverage, market forces. This knowledge translates across industries and enabled her to quickly identify opportunities for improvement.
Third, and perhaps most importantly, she had extraordinary emotional intelligence. She could read people, build relationships, and navigate organizational dynamics. This allowed her to understand the company culture and win over stakeholders during the interview process.
As one of my clients put it: "I can teach someone our business. I can't teach them leadership."
When Industry Experience Does Matter
This approach applies primarily to general management roles. For functional leadership positions, deep domain expertise is often essential. R&D leaders typically need science or engineering backgrounds to evaluate technical decisions and credibly lead developers. Regulatory affairs leaders need specialized knowledge to navigate complex compliance requirements.
General management roles in crisis situations—turnarounds and other time-sensitive scenarios—may also require industry knowledge because there's no runway for learning.
The Bottom Line
Most hiring managers get seduced by resume matching—looking for candidates who've done exactly the same job at similar companies. This approach can miss the most important contributor to executive success: the ability to think strategically, communicate effectively, and inspire teams to achieve results.
The best general managers can quickly learn new industries. What they can't quickly learn is how to lead. When you're filling a general management role, focus your evaluation on leadership capabilities. You may be surprised by who emerges as your strongest candidate.
