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How about Co-CEO’s?

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NHRD Bangalore Chapter organised a program “Perspective on Women in Leadership”. The Panel discussion was moderated by Dr. Vishal Shah, VP – Leadership & Organisation Development, INDEGENE and had on its panel Yasmeen Shaikh, VP-HR India,Nextgen Healthcare India Pvt Ltd, Dr.Deepa Nagarajan, Founder & Director,Deepa Nagarajan LLP & Yagna Foods Pvt. Ltd. And Mohana MD, Chief People & Culture Officer, Betterplace Safety Solutions Pvt Ltd.

A very interesting question was posed by one of the members from the audience of

why not organisations consider organisation as a family and have a Male & a Female member as Co-CEO’s like a father & mother runs a family.

At first thought, I thought that it was very unique idea and worth exploring. However I also realised that it goes against the 14 Principles of Management founded by Henry Fayol, where he lists “unity of command” as one of the principles.

Hence I wanted to research on this and I found that it is already being practiced in the west.

According to a Research article ‘Is it time to consider co-CEO’s’ in HBR some of the top examples of organisations that have experimented with this idea are Chipotle, Goldman Sachs, the Harris Poll, Jefferies Financial Group, the computing technology company Oracle, the investment management company PIMCO, Research In Motion/BlackBerry, SAP, Unilever, and Warburg Pincus. 

Further when I researched I found that organisations like Duetsche Bank,& Chanel have experimented. While research data is mostly pertaining to the West, there is an example of Lotte Group in South Korea that has also tried it out. While the results are mixed the HBR research actually throws some very interesting facts:

“We recently took a careful look at the performance of 87 public companies whose leaders were identified as co-CEOs. We found that those firms tended to produce more value for shareholders than their peers did. While co-CEOs were in charge, they generated an average annual shareholder return of 9.5%—significantly better than the average of 6.9% for each company’s relevant index. This impressive result didn’t hinge on a few highfliers: Nearly 60% of the companies led by co-CEOs outperformed. And co-CEO tenure was not short-lived but more or less the same as sole-CEO tenure—about five years, on average.”

Source : https://hbr.org/2022/07/is-it-time-to-consider-co-ceos#

The concept of Co-CEO or dual CEO has been gaining popularity in recent years, with many companies opting for this leadership structure. Co-CEO refers to a situation where a company has two CEOs, who share the responsibility of running the organization. This arrangement may seem unconventional, but it has several advantages and can be beneficial for the company.

One of the primary advantages of having Co-CEOs is that it allows for a more collaborative approach to leadership. With two CEOs, the company can benefit from the different perspectives, skill sets, and experiences of each individual. This can lead to more innovative ideas, better decision-making, and a more well-rounded leadership team. Additionally, having two CEOs can help to reduce the workload of each individual, allowing them to focus on specific areas of the company that align with their strengths and expertise.

Another advantage of having Co-CEOs is that it can provide a smoother transition in the event that one of the CEOs decides to leave the company. With two CEOs in place, the departure of one individual does not necessarily mean that the company will be left without a leader. The remaining CEO can continue to manage the company while a replacement is sought, ensuring that operations continue uninterrupted.

However, there are also potential drawbacks to having Co-CEOs. One of the biggest challenges is ensuring that the two CEOs are able to work together effectively. They need to be able to communicate well, share power and responsibilities equally, and avoid any potential conflicts or power struggles. If the two individuals have different ideas about how to run the company or are unable to work together effectively, it can create a lot of tension and lead to inefficiencies and problems within the organization.

Another potential issue with Co-CEOs is that it can be difficult to determine who is ultimately responsible for the success or failure of the company. With two CEOs, it may be challenging to assign accountability and measure individual performance. This can make it difficult to make strategic decisions and allocate resources effectively.

While having Co-CEOs may seem like an unusual leadership structure, it can be a beneficial arrangement for some companies. It allows for a more collaborative approach to leadership, can reduce the workload of each individual, and provide a smoother transition in the event that one of the CEOs decides to leave. However, it is important to carefully consider the potential drawbacks, such as the need for effective communication and collaboration, and the challenge of determining individual responsibility for company performance. Ultimately, the decision to have Co-CEOs should be based on the unique needs and circumstances of each company.

The novel suggestion of having a Male & a Female as Co-CEO’s would be akin to a Parent (Father/Mother) running a family. While the Male partner could be seen, bold, risk taking and aggressive, the Female partner could add the human touch with her empathy, emotional agility, collaboration and resilience.

Yes there are many private family run businesses that have this arrangement in place but informally. But can it be experimented and institutionalised formally? Is there any one willing to experiment?

Dave Ulrich & Marshall Goldsmith any thoughts about this shared leadership idea? Would it go against the grain of “unity of command” and lead to chaos. Would you think its an idea worth trying it out?

Republished with permission and originally published at Ramesh Ranjan’s LinkedIn

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