Horse racing has entranced spectators for centuries, from the Greek Olympic Games when riders barefoot hitched their horses to chariots to the present day’s millionaires crowding Millionaires Row at major tracks to place bets on their favorite horse. The most popular race is the Melbourne Cup, which takes place in November at Flemington Racecourse in Melbourne, Australia. It’s the ultimate test of speed and endurance. The winner takes home $8 million in prize money, a sum that has made it the most lucrative sporting event in the country.

In a horse race, horses are assigned weights to compete fairly. The weight a horse must carry affects its performance during the race, as well as its chances of winning. Some races are based solely on the amount of weight carried, such as those for older horses or females running against males, and are known as handicap races. Other races are based on speed, and are called sprints. These races are often more competitive, as the horses are lighter and therefore faster.

When a horse is injured or dies during the race, it’s called a “broken horse.” It’s an unfortunate but unavoidable part of the sport. The deaths of several high-profile horses following the 2023 Kentucky Derby led to a report by ESPN and a documentary, “Broken Horses,” that examined the causes of the accidents and sought ways to prevent them.

Aside from the physical exertion, there are many factors that contribute to a horse’s ability to win a race. A horse’s training, diet, and equipment can all influence its performance on race day. The jockey and driver of a horse also play an important role. Their experience and track record can make or break a race.

Companies that use a horse race approach to selecting a new CEO must carefully consider whether their culture and organizational structure are compatible with this type of leadership contest. Boards that choose to employ this strategy must cultivate a culture of succession planning where executives and employees embrace the competition for the top position and understand that the best leader will emerge from the process.

While the horse race model is a powerful tool for selecting a CEO, it’s not right for every company. Some boards are sensitive to the increased scrutiny of company and executive performance, and fear that a protracted succession horse race will slow down momentum and damage business results. These directors will try mightily to limit the length of the contest. Other boards are comfortable with a more open competition for the top job, and believe that the best leader will ultimately emerge from the contest. These boards typically create a progression of critical roles through which an executive can gain the skills and seasoning needed to lead a company. This system also allows them to avoid the potentially damaging impact of internal politics on business performance.