Latest / Executive Careers with Fexingo: VP, C-Suite, and Senior Leadership Career Strategy / How Senior Leaders Use Internal Transfers to Avoid Lateral Moves
Transcript
- Lucas: A couple of weeks ago, I was talking to a VP of Product at a Fortune 500 tech firm — let's call her Sarah. She'd been in her role for about three years, and she was starting to feel that familiar restlessness. Not burnout, exactly, but the sense that she'd plateaued. Luna: The kind where every Monday morning meeting feels like a rerun? Lucas: Exactly. And her first instinct was to start looking externally. Update the LinkedIn profile, call a few recruiters, the usual. But then her mentor suggested something different: an internal transfer. Not a lateral move, but a strategic repositioning. Luna: I think a lot of senior leaders overlook that option because they assume internal moves are automatically lateral — same pay, same level, just a different org chart. Lucas: Right. And that's the trap. Sarah's mentor told her: 'You don't want a lateral move. You want a transfer that comes with expanded scope, a budget increase, and a clear path to the next level.' So she spent six weeks mapping out exactly which departments had the biggest strategic gaps. Luna: Six weeks — that's a serious investment. Did she go in cold, or did she have a sponsor on the inside? Lucas: She had one key sponsor: the head of a new business unit that was being spun up. They'd worked together on a cross-functional project a year earlier, and he knew her work. That relationship was critical. Without sponsorship, internal transfers at the VP level almost always fail. Luna: So the transfer wasn't just about a job change — it was about timing and relationships. Lucas: Exactly. And she did something really smart: before she even raised the idea with her current boss, she had a one-page memo outlining how the move would benefit both the new unit and her existing team — including a transition plan that wouldn't leave anyone in the lurch. Luna: That's the opposite of the 'I'm leaving, good luck' approach. Lucas: Completely. And because she framed it as a growth opportunity for the company, not just for herself, her boss actually supported it. The new role came with a 20 percent increase in direct reports, a bigger budget, and a title change from VP of Product to SVP of Product and Platform. Luna: So she effectively got a promotion disguised as a transfer. But I'm guessing not every internal move goes that smoothly. Lucas: No, and the data backs that up. According to a recent workforce analytics report from Q2 of this year — June 2026 — internal mobility rates among S&P 500 companies are up 18 percent year-over-year. But the same report found that only about a third of those moves result in a title or compensation upgrade. Most are lateral. Luna: So the odds are against getting a promotion. What's the difference between a lateral shuffle and a strategic step up? Lucas: I think it comes down to three things. First, clarity of scope: does the new role have more responsibility, a bigger budget, or a broader mandate? Second, compensation: are you negotiating a salary adjustment at the time of transfer? And third, timing: are you moving into a growth area, or a department that's being downsized? Luna: Let's unpack each of those. On scope — how do you even assess that before you commit? Lucas: Sarah used what she called a 'shadow assignment.' She spent two days a week for a month working alongside the new unit's team — attending their planning meetings, reviewing their roadmap. That gave her a real sense of the role's breadth before she made any promises. Luna: That's a tactic more senior leaders should use. It's like a trial period without the risk of quitting your current job. Lucas: Exactly. And on compensation — this is where most people drop the ball. They assume internal moves don't come with raises. But if you're taking on more scope, you should absolutely ask. Sarah's offer initially didn't include a salary bump. She had to point out that the new role had three times the P&L responsibility. Luna: And did that work? Lucas: It did — she got a 12 percent increase. But she had to frame it in terms of market benchmarks for that level of responsibility, not just 'I want more money.' She used compensation data from the same industry. Luna: So preparation matters. What about timing — how do you know if a department is a growth area? Lucas: That's the hardest part. One signal: look at where the company is investing its capital. Are they hiring aggressively in that unit? Are they spinning up new products or entering new markets? If the answer is no, it's probably a lateral trap. Luna: What about the risk of being seen as disloyal? Some senior leaders worry that expressing interest in an internal move will make them look uncommitted. Lucas: That's a real concern, and it's why you need to frame it as a growth conversation, not a complaint. Sarah started by saying, 'I want to maximize my contribution to the company, and I think my skills could be more impactful in this new area.' That's hard to argue with. Luna: It also helps if you have a track record of delivering results. If you're a top performer, most bosses would rather keep you in the company than lose you entirely. Lucas: Exactly. And one more thing — the 'six-month check-in.' Sarah negotiated a formal review after six months in the new role to assess whether she was on track for the next level. That created a built-in accountability mechanism for both her and her new boss. Luna: So it's not just about the transfer itself — it's about setting up the conditions for future growth. Lucas: Right. And I think that's the key takeaway: an internal transfer can be a powerful career accelerator, but only if you treat it with the same rigor as an external job search. You need a target, a sponsor, a transition plan, and a negotiation strategy. Luna: Before we wrap up, I want to mention something. If today's episode helped you think through a career move or decision, these conversations stay ad-free because of listener support. It's a small thing, but it makes a big difference. Lucas: Absolutely. If you found value, you can support the show at buy me a coffee dot com slash fexingo. That's all lowercase. And thank you to those who already do — it keeps us going. Luna: So back to the topic — one last point. Sarah's move also gave her exposure to the CEO, because the new unit was a pet project. That visibility alone was worth more than the title bump. Lucas: That's a great point. Internal transfers can also be a way to get in front of senior leadership who might not see your work otherwise. It's a visibility play as much as a career move. Luna: So if you're feeling stuck, maybe the next step isn't a new company — it's a new corner of your current one.