- by Sophie Pinkoski

As organizations grow and evolve, so do their leadership needs. One non-traditional solution is the notion of co-CEOs. When done right, a co-CEO model can provide additional bandwidth needed to manage rapid growth, complex transitions, and high stakes decision making. But it’s not without its challenges. The board is ultimately responsible for making a co-CEO model work. That means clarity from day one and throughout the tenure of the shared leadership structure.

The key to co-leadership success isn’t just bringing two people into peer roles, it’s about bringing the right people together, in the right way, for all the right reasons.

This model might be implemented when you know that it is unlikely that you will find a single person who can embody the skills and experience needed to efficiently run the organization or the leadership role could benefit from different focus areas. Some examples include in the performing arts industry where there is an artistic director leading the performance aspects of the organization and an executive director focused on operational leadership. Other co-CEO examples include in family business or organizations where the board determines that it is best for one leader to focus on external areas and the other to focus on internal leadership. Co-CEOs work best when each leader balances out the other’s skill gaps. In essence, they ought to complement––not compete with––each other. Coming into the shared role with an authentic partnership based on unwavering trust is key. Without a true compatibility of personalities, there is great risk to the organization and the leaders.

Introducing a co-CEO arrangement isn’t a decision a board should take lightly. It involves many complex moving parts that require careful planning and consistent work to maintain its effectiveness. As such, it may not be an ideal permanent solution. The model is often more of a transitional strategy to ease periods unexpected leadership change or at a time of growth while an organization gains its footing. It’s important to recognize when your organization has matured past the need for its co-CEO model. By weighing the benefits and risks of applying a co-CEO model, you can determine whether it would be the right model for your organization and its unique needs and, at what point, the model should be evaluated for its long-term effectiveness.

Here are ways a co-CEO model can benefit your organization:

Increased leadership capacity–– In some organizations pressures of leadership mean that it’s difficult for a single person to take on the complex challenges of a CEO role. Having a second person you can trust at the top can help relieve that burden by delegating tasks according to each individual’s skillsets. This prevents a single leader from spreading themselves too thin.

When responsibilities are divided according to specialization, the co-CEOs can more easily focus on what they do best, rather than attempting to give 110% to too many tasks.

With too many responsibilities on their plate, it’s impossible to dedicate the same effort and energy to them all. That’s when burnout can happen, causing quality to slip. A second leader can help shoulder all the required work.

Organization agility and stability–– With two leaders, it’s easier to divide and conquer on important tasks. For instance, one individual can focus on day-to-day operations, while the other deals with long term growth. There are more opportunities under a co-CEO model to build the organization’s long-term stability. The deliberate nature of implementing a successful co-CEO strategy often means laying the groundwork for bigger things. In fact, it’s likely an organization might choose such an arrangement with a specific goal in mind, with an intention to return to a single CEO once the objective is achieved. Giving both leaders a clear vision to work toward builds their sense of purpose and shared alignment. 

Improved decision making–– Decision making can be strengthened by a co-CEO model, as it invites diversity of thought. A second opinion can help identify a leader's biases and blind spots in the ideas and solutions they offer. Having an alternative perspective in the room gives plenty of opportunities to brainstorm more options to identify a solution best suited to the organization’s needs. Two leaders working together to find that ideal solution means they can bounce ideas off one another with honesty, leading to healthy debate and more creative problem solving.

Despite its usefulness during transitional periods, there comes a certain point where co-CEOs stop being effective. A co-CEO model may be the preferred option for transitional periods of growth, but once the organization stabilizes, it can become an inefficient approach. It may become impractical to split of responsibilities for the long term. That means returning to a single CEO role where the individual can delegate tasks to their team to focus their time:

Conflicts and power struggles–– One thing that can break down the effectiveness of co-CEOs is when a more dominant leader emerges between them. This can become apparent to your team and stakeholders, especially when one leader takes on a more public facing role in the business. This opens up the organization to questions concerning who has true authority. If the public is led to doubt the authority of the co-CEOs in charge, this can erode their trust in the leaders’ capacity to manage the organization.

Internal division–– The blurred lines of authority can do just as much internal damage to your organization. Here, the question becomes who has the final say in complex decision-making situations that lead to disagreements between CEOs.

An effective co-leadership model will have set out clear protocols to manage disagreements or addressing who has the final say on certain matters.

If leaders are facing frequent stalemates, this can grind decision making to a halt. A healthy co-leadership model encourages a culture of autonomy, which empowers their team to make informed decisions on their own. Yet when every decision has to meet a consensus from the co-leaders, you can wind up with a bottleneck effect instead, where permissions slow to a crawl and opportunities fall by the wayside.

Breakdown of communication–– Opposing egos with clashing priorities for the organization creates conflicting messaging that can ultimately confuse matters both internally and externally. It muddies the water in terms of the co-leaders' intent. Such incompatible personalities can lead to a breakdown of communication, especially if the business has been divided up between each leader. If each specialized area of the organization is separated between leaders who don’t communicate with each other, neither the leaders nor their teams can work with the organization’s needs in mind.

Choosing the right leadership model is one of the most crucial decisions you can make for your organization. Although the co-CEO model can be a powerful tool for growth and stability, it is not a one-size fits all solution. Before committing to your approach, ask yourself if your organization needs a dual leadership. Could a co-CEO model create more complexity than clarity for your organization? Success depends on entering the arrangement for all the right reasons, with careful preparation and a clear plan ahead. By weighing the risks and benefits a co-CEO model brings, you can make the most informed strategic decision that will strengthen, rather than complicate your organization.

Further Reading:

What Are The Benefits Of Co-CEOs?, Forbes

Do Co-CEOs Really Work?, LinkedIn

Is It Time to Consider Co-CEOs?, Harvard Business Review

The Co-CEO: Can Two Heads Be Better Than One?, Raconteur

Are 2 CEOs Better Than 1? Here Are The Benefits and Drawbacks You Must Consider, Entrepreneur

Co-CEOs: Are More Heads Better Than One? Business Insider

Co-CEOs: Are Two Better Than One?, Chief Executive

Why Your Organization May Need Co-CEOs Now, Forbes

8 Reasons Why Co-Leaders Fail, Harvard Business Review

Here’s When It Actually Makes Sense to Have Co-CEOs, Medium

How To Successfully Argue For A Co-CEO Role, Forbes

Co-Founders Are Great. Co-CEOs Aren't. Here's Why, Inc

Co-CEOs: How Unconventional Leadership Can Redefine Our Expectations of Businesses, Association of MBAs

Could A Co-CEO Be The Right Move For Your Business? Forbes

Is it Time to Go Co? The Pros and Cons of Co-Leadership, David Fairhurst

Salesforce Goes The Co-CEO Route: Pros And Cons, Chief Executive

Have You Considered Hiring A Co-CEO? It Might Be The Right Move, Forbes

The Pros and Cons of a Co-CEO Model, Entrepreneur