Inner Strength? Promoting from within isn't always your best bet.

Growth in revenue usually brings with it a critical need foradditional employees. As new positions are created, the question tothink about is this: Should you fill senior-level jobs from within?Or should you hire outside talent?

Katherine Hammer, CEO and co-founder of Austin, Texas-basedEvolutionary Technologies International Inc. (ETI), faced thatdecision as her high-tech business kept recording nonstop growth.Before the growth spurt, the company had been leanly staffed."It's a mistake to hire too much high-powered talent tooearly," says Hammer. "They're expensive, and the factis, when you're small, you don't have full-time jobs forthem yet. They sit around twiddling their thumbs."

But as ETI--which provides sophisticated data management toolsto clients in banking, health-care, insurance and otherindustries--grew, so did its need for top-level executives. SoHammer promoted a number of people from within the company to filljobs that carried substantial responsibility.