 On 26 January 1940, Northcott became acting Chief of the General Staff (CGS) following the death of Lieutenant General Ernest Ker Squires. In August, his successor, General Sir Brudenell White, died in an air crash and Lieutenant General Vernon Sturdee succeeded him. The post of commander of the 8th Division thereby became available but Northcott was excluded from consideration because his knowledge was vital to the new CGS. When the commander of the 9th Division, Major General Henry Wynter, fell ill in January 1941, Lieutenant General Sir Thomas Blamey asked for Northcott to replace him, but Northcott was involved in organising the 1st Armoured Division and the appointment instead went to Brigadier Leslie Morshead.
