When a key position comes up it's a natural tendency to look outside for talent. Nobody inside the company looks as good to his boss as the outside person does. This unfortunate attitude stultifies the growth of individuals within a company. It also compels younger executives to change jobs to get the advancement they deserve.
Take a sensitive position, like that of sales manager. In filling it, start with the company's outstanding performers last year - in any field, whether it was related to sales or not - and see if any one of them could be promoted to the job. Of course you've got to interview them and make sure they are ambitious, hungry and intelligent. They must regard the job as being a challenge and opportunity.
The fact that they may not know anything about sales management is an asset. They already know the basic nature of the company and have the respect of they're peers going with them. In a service good at dealing with people - if they weren't sales minded they probably would not have achieved the level they already have in the company. In two years they will have streaked ahead of the person hired from outside.
Rule of thumb: If a person looks to be 50% of what you want for the job and they are an outstanding performer in any field in the company, it's almost certain that they will grow the other 50% in a remarkably short time.
