Experts offer advice for those on both sides: aspiring executives themselves, and the leaders who are managing the selection process

Pity the poor internal candidate who throws a hat in the ring when the association is looking to fill a CEO or other top executive slot.

All through the search, there's the risk of public failure, of being known as the one who reached for the brass ring … and fell short.

"It's risky to put yourself out there," says Elaina Genser, senior vice president of Witt/Kieffer executive recruiting firm and an association search veteran.

There's also risk involved for the association managing a search with internal candidates. On one hand, it's good to have strong internal candidates in the mix; they're living proof that your group has a strong, talent-deep bench.

But it can also be a negative, if the search is not managed well, experts say. Dynamics often arise between competing internal candidates that can be disruptive to the association; once the search is over, the group may find that one or two former stars are now disenchanted, even bitter.

"It's a very tricky, sensitive situation," said David Brookmire, an executive leadership consultant who has advised many national nonprofit and for-profit organizations on selecting new leadership.

Given the risks, these experts, as well as a successful internal candidate, offered guidance for those on both sides of the equation—the internal candidates themselves and those managing the selection process.

Equality of consideration

Experts recommend the association shoot for the following positive outcome: Those vying for the job, whatever the decision, come away thinking the process was fair and forthright.

"You want the person to feel good about how they were treated through this," Genser said.

This is especially important when internal candidates compete with candidates from outside. That's because of a common perception that outside candidates benefit from being a new, potentially exciting commodity, and thus have an inherent advantage. This is common when the association has hired a search firm to find and vet outside candidates; in those cases, it is crucial the association "makes sure the internals know their candidacies are being seriously considered," Brookmire said.

One way to do that, the experts say, is to make sure the process is the same for internal and external candidates, even to the extent to which interview questions are the same. "The search committee should set up a rigorous and consistent process that everybody goes through," Genser said.

And when there is more than one internal candidate involved, boards should be careful not to communicate with one and not the other, which can send "mixed messages," Brookmire said.

Establishing a clear timeline for the search, and keeping candidates posted when possible, is also important, Genser said. Internal candidates may be interested in a position as soon as the current executive (or the association) discloses an exit. That makes for a long period of uncertainty—from the departure announcement to the day the search result is announced. "All that time, you're waiting with bated breath for a decision," she said.

Dealing with disruption

Search managers should also be aware of the dynamics that can arise during a search when internal candidates are under consideration, experts say. Rivalries may emerge between two competing candidates; sometimes, one or both will try to galvanize unofficial "support" among rank-and-file staffers.

Brookmire said he has seen searches in which an internal candidate tries to gain an edge by becoming more dominant; he or she "presents a stronger and more forceful face to the board."

But these developments can have negative fallout for the group. Rivalries can pollute an office environment with tension, and become disruptive to day-to-day operations. Staffers can resent what's seen as a power play. Countering these dynamics can be messy. "Dealing with some of those conflicts, for many people, isn't the most pleasant experience," Brookmire said.

If the current CEO is on the verge of leaving, he or she may feel compromised when trying to sort things out: "You're sort of trying to manage this when you have one foot out the door," Brookmire said. In those cases, the board may have to take the lead in straightening out these situations, or at least in giving the current CEO a "we expect you to continue to lead" message.

The successful internal candidate

Hank Jackson, head of Society for Human Resource Management, made the switch from internal candidate to CEO. Jackson's jump had a twist, however: He "had no goal of becoming CEO."

"[They] said, ‘Just do the job until we find someone. So I expected them to find someone. And in the end they told me, ‘Well, we think we've found you,'" Jackson said.

But for those internal candidates who are acting as interim, Jackson has some advice: Interims should not think interim. "Don't take an interim job on an interim basis. Take an interim job as if it you were going to do it [long term]. Do what you would do as if you had this job for life," he said.

Of course, not every internal candidate is as successful as Jackson. But in the "classier" organizations, the board chair will sit down with the unsuccessful candidate and deliver the following message: "We hope you'll stay," Genser said. If the search revealed areas where the candidate could further develop (e.g., did not get the job because of insufficient advocacy experience), the group can help the unsuccessful candidate build the skill set.

External candidates can be classy too. Sometimes, an incoming CEO will meet with unsuccessful internal candidates, and express to them that their experience and institutional knowledge will continue to be a valuable asset.

"That's a great CEO," Brookmire said.