The Next Wave of CEO Talent in Medical Devices

The medical device landscape is undergoing a distinct shift. The executives that drove success over the last decade will not be the same ones to lead these organizations through the next one. Forward-thinking medical device manufacturers are seeking out the next generation of leaders, but the right executive for the job may not be the most obvious choice. 

Now more than ever, organizations are turning away from the traditional hiring practice of selecting the most experienced, “been-there, done-that” CEO. Instead, leading businesses are embracing a new opportunity – hiring a “step-up” candidate. A step-up candidate is a leader who has deep industry expertise as well as a strong leadership track record, but has never held the title of CEO before. 

In the past, most organizations would shy away from a candidate without direct prior CEO experience. However, modern medical device manufacturers are now betting on these leaders to take their businesses into the future, prioritizing adaptability, openness to new technology, AI fluency, and innovation capability over proven experience in the top seat.  

Case In Point 

In the past year, we have seen a number of step-up CEOs take the reins of major medical device companies. 

• A $100M private equity-backed Contract Development and Manufacturing Organization (CDMO) needed a new CEO to take their organization to the next level. They sought out an individual with strong commercial acumen, a deep understanding of the engineering process, and the “it” factor, which they defined as a standout level of charisma and executive presence. Going head-to-head against traditional, experienced candidates, the organization ultimately hired a step-up candidate as CEO. The individual was an engineer-turned-commercial leader, who had a proven track record as a Chief Commercial Officer and President in another private equity-backed CDMO. With P&L ownership and high connectivity to the marketplace, the candidate was the perfect fit to step in and lead the organization.  

• A $400M medical device manufacturer sought a new CEO to push the organization to new heights. They needed a candidate with heavy commercial experience as well as a background in corporate development and strategy. Competing against a field of long-tenured “been-there, done-that,” leaders, the organization ultimately decided to promote an internal candidate from within, giving the individual their first opportunity to be a CEO. This leader came to the table with Vice President-level experience in Marketing and Operations, which included P&L ownership and experience developing consensus leadership. In addition to this high level of expertise, the individual possessed the “it” factor needed to be successful in the role, which helped them edge out the other “tried and true” candidates. 

• A $30M private equity-backed, founder-led CDMO needed a scrappy new CEO to scale the business to the next level. The private equity firm set out to hire a leader with a high level of operational savvy and deep experience in the contract manufacturing space. This individual would also need to possess exceptional motivation and drive to push the organization to new heights. The firm ultimately hired a first-time CEO for the role, relying on the candidate’s experience as a successful Chief Operating Officer to ensure success in the seat. This individual beat out the competition because of their energy and unique ability to connect with the founder, which would enable them to grow the business while retaining the best of what had made the organization successful previously.  

• A $200M global CDMO needed a new CEO to achieve its next level of growth. The organization sought a leader with both deep experience in the CDMO space as well as a robust background in commercial strategy. Furthermore, the new CEO would need to partner closely with the organization’s operations team, so a demonstrated ability to work alongside a strong operational leader would be requisite. Ultimately, the organization decided to promote from within, selecting a new global CEO who had previous experience as both the company’s Chief Commercial Officer and as a business unit leader for one of the company’s global regions. The individual’s past experiences partnering with operations, their high levels of commercial expertise, and depth of energy and tenacity to push the organization ultimately made for the perfect candidate to take the seat, beating out a slate of experienced CEO candidates. 

Why Step-Ups Are Winning in Medical Device Manufacturing

Across the board, step-up candidates are edging out the competition. Why? First off, these leaders offer incredible value to private equity-backed organizations, in part because of their alignment to the demands of value creation in today’s market. Top candidates are bringing strong commercial orientation, which is aligned with quickly accelerating top-line growth. These leaders also possess key “soft skills,” including energy, adaptability, and the “it factor,” which signals the ability to rally teams, align stakeholders, and drive change. Combined with a greater perceived career runway to scale with the business, step-up candidates are often a higher-return leadership bet for private equity firms. For internal candidates who are selected to step into the CEO role, there is the added bonus of institutional knowledge and cultural alignment, which reduces transition risk.   

Considering a Step-Up Candidate for CEO? 3 Experiences Ensure Success 

For medical device manufacturing companies interested in exploring a step-up candidate for their next CEO, rigor during the hiring and evaluation process are imperative. Hiring teams should probe for three critical experiences: 

• Demonstrated successful track record – for someone who has never been a CEO before, a pristine resume is an essential indicator that the leader knows how to perform. Whether they are a commercial leader, operations, or finance, step-up candidates should be the best and brightest from their vertical. Any gaps or questionable stints should be an immediate red flag. 

• Full P&L responsibility – leaders stepping into the CEO seat for the first time must have experience running both the commercial team and operations. If they have experience managing the ledger but have not been managing hiring and firing for the team, they need more experience before they can take on the top job. 

• Domain expertise – industry-specific experience is imperative. If a leader has not been a CEO before, doing so in an industry where they are unfamiliar is a non-starter. For step-up candidates to be successful, they must have deep sector knowledge, otherwise both the role and the industry will be new, which is a recipe for disaster. 

As the medical device industry evolves, so too must the criteria for leadership. Organizations that look beyond traditional CEO experience and prioritize adaptability, strategic thinking, and leadership potential are positioning themselves to stay ahead of the competition. The willingness to bet on high-potential step-up candidates may prove to be a defining advantage.