Under what conditions would it be more appropriate to fill a key management position with someone from outside the firm when a qualified insider is available?

The only condition I can think of is if the top management wanted to "clean house" and get rid of some of the employees.

I could not find a reason of why one should hire from the outside.

I gave you a reason for hiring from the outside. An outside person is usually more effective in firing employees.

When making a decision to fill a key management position, there are several factors that organizations consider. While hiring a qualified insider is often advantageous, there are situations where it may be more appropriate to fill the position with someone from outside the firm. Here are some conditions that may justify hiring an external candidate:

1. Fresh perspectives and innovation: Hiring someone from outside the firm can bring in new ideas, experiences, and a fresh perspective on industry trends. This can lead to innovative solutions and strategies that insiders may not have considered due to their proximity to the organization's existing practices.

2. Industry expertise and networks: If the organization is looking to expand into new markets or requires specific industry knowledge, an external candidate with relevant expertise and a strong network can be valuable. They may bring new connections and insights that can help the organization navigate unfamiliar territories.

3. Cultural or strategic shift: If the organization is undergoing significant transformations or rebranding, an external candidate may be better suited to drive the change. They may have experience in leading similar transitions and can introduce new ways of thinking and operating to align with the desired cultural or strategic shift.

4. Conflict of interest or credibility concerns: In some cases, hiring an insider for a key management position may raise concerns about conflicts of interest or lack of objectivity. For example, if a key decision heavily impacts the insider's department or if there are credibility issues associated with the internal candidate, an external candidate may provide a more impartial viewpoint.

5. Leadership gaps: If there is a lack of qualified internal candidates for the key management position, it may be necessary to consider external options. This could be due to skill gaps, limited leadership development opportunities, or a lack of diversity in talent within the organization.

Ultimately, the decision to hire an external candidate over a qualified insider should be based on a careful evaluation of the organization's needs, strategic objectives, and the qualifications and competencies of candidates both internally and externally. It is important to consider a balance between the benefits of fresh perspectives and industry expertise with the potential challenges of cultural fit and organizational continuity when considering external candidates.