As the list of chief executives’ responsibilities grows, it is fair to ask whether the time has come for the CEO role to evolve. While the chief executive’s position has stood still for many years, the team around the chief executive has undergone something close to a renaissance. Over the past three decades, modern executive teams have doubled in size. This is mainly due to the emergence of new strategic areas such as digitalisation and IT, while established areas such as HR and corporate social responsibility have become far more important. The result is an alphabet soup of titles such as CTO, CHRO and CDO in executive teams. The top job, on the other hand, remains the same as before, even though it covers more ground and demands considerably more knowledge. Modern organisations must be able to adapt quickly to keep pace with new business strategies and the latest technology. A generational shift in the workforce and in society at large has led to greater collective social awareness and, with it, a growing expectation that companies should be sustainable and work strategically to reduce social inequality. To ease the pressure on the chief executive, some companies have chosen to double up the role and have two CEOs.
When large, innovative companies make fundamental changes to their management structure, it sends ripples through the business world. That is exactly what happened earlier this year, when Netflix announced that it was duplicating the top management position in the company. Ted Sarandos, the man behind Netflix’s journey from a small video rental chain to a global streaming company, was promoted to co-CEO in June. The appointment was seen as a way for Netflix to promote Sarandos to a well-deserved leadership position without having to replace the incumbent chief executive. There are many advantages to an arrangement like this. A dual CEO role can broaden the expertise at the top, especially if the two leaders have unique skills that complement each other. Such a leadership structure also makes it easier for a company to retain its leadership talent. A dual CEO role increases the likelihood that aspiring senior executives will be able to climb to such a position, which can inspire them to stay with the company. At the same time, the arrangement frees up a seat on the executive team, making it easier for ambitious employees to break into the ‘C-suite’.
Hiring an additional chief executive can also be a temporary step in a long-term plan. If you want to phase out the original CEO, for example in connection with retirement, an arrangement with two chief executives can be a good alternative. Not only does such a structure give the new CEO time to grow into the role and learn from their CEO colleague, but it also gives the rest of the workforce the opportunity to become familiar with the leader who will eventually take responsibility for the company. A dual CEO role can therefore contribute to a smoother organisational transition, both for the incoming leader and for the company as a whole.
A temporary need for an additional CEO can be particularly relevant during a major change process. Perhaps the business is going through a difficult financial period and plans to downsize, or perhaps the company is being prepared for a merger. In situations like these, it makes little sense to hire a full-time co-CEO; a temporary leader is the better option. By hiring an interim manager, you gain access to specific expertise that the current leader may not have. The CEO usually has unique knowledge of the company, but does not necessarily have experience of similar transformation processes in the way a hand-picked interim manager may have. The combination of external expertise and internal insight can help make a change process considerably more seamless and manageable for a company.
If your company is interested in seeing what it is like to have two CEOs, hiring an interim manager can be a sensible step. With a temporary leader of this kind, you can test the concept without having to make a lasting change to the company’s overall management structure. If such a pilot project is to succeed, it is essential to choose the right candidate. To bring specialist expertise into the management team, it can be wise to get help from people who know the field. With our experienced management advisers and our extensive candidate network, Agile Interim can help you identify your expertise needs and find the right candidate for your company.