Organizations have experimented with leadership models for as long as there have been organizations, and co-leadership is nothing new. In fact, co-leadership can prove especially valuable in the privately-held organization. Does co-leadership make sense for you? Here are four reasons to consider implementing a co-leadership model and how to make it happen.
1. Leadership & Management Depth. As an organization grows, so does its complexity. Early on it may be governmental compliance and financial reporting that brings challenge; later, business structure and performance appraisal systems. By the time an organization has 50 or more employees, most owner/leaders are feeling pulled into areas not central to their experience. One option is to build a more specialized management team, but that can be expensive. A more effective option may be to team up with an experienced co-leader. Acting as a team, workloads are lightened and focus improves.
2. Improved Decision Making. The bigger an organization gets the more complex and risky become the decisions. From core business investments and multi-year financial commitments to key personnel decisions and legal agreements, each demands an increasingly thorough and sophisticated perspective. Larger companies support their leaders with specialized internal and external advisors, and boards of directors. Smaller companies simply can’t afford equivalent resources. Co-leadership provides an effective alternative, and better decision making is a result.
3. Organizational Focus. Great ideas, extraordinary service and the personal commitment of owners are the soul of growing companies, but its organizational development that ensures the future. Building an organization that plans ahead and coordinates those plans through an expanding organization of specialized resources becomes a primary responsibility of the evolving leader. So what happens to an organization whose senior leadership is directly engaged in the delivery of product and service? Compliment it with co-leadership. By pairing core operational expertise with experienced business leadership the organization benefits without experiencing loss.
4. Leadership Stability. Leadership change is always a challenge, but change involving owners is even more problematic. Simply put, privately-held companies rely heavily on the presence and contributions of their owner/leaders. Whether for reasons of changing interests, retirement, illness or just a desire to slow down, leaders must prepare their organizations for all eventualities. Co-leadership arrangements provide the needed flexibility. A co-leader can provide capacity for time off, assist in developing future leaders, and bridge the requirements of a sale.
Management and advisory firms are excellent resources for co-leadership partners. Seek out professionals with extensive educational and experience qualifications, particularly in areas where you may feel less qualified. Always draft a position description, first in total and then split as the two of you agree. Similar arrangements can be made with new or existing employees, though management professionals offer enhanced objectivity as they lack an employment agenda.
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About the Author. John Sherwood is the founder and Managing Director of CExOGroup, a professional services firm supporting the leaders and capital partners of privately-held companies in the mid-Atlantic region with assessment, advisory, management and recruiting services.