A CEO (Chief Executive Officer) is the captain of the business’s ship, in charge of its direction, and responsible for its stewardship. When we think of a CEO, we think of a single person at the very top of the company’s pyramid – but another business model is becoming increasingly popular in the post-pandemic world.
Co-CEOship is a non-traditional business model that’s exactly what it sounds like: a model in which there is more than one CEO sharing responsibility for running the company. Below, we look at the pros and cons of adopting a co-CEO structure, the things that need to be considered before committing to this model, and some real-world examples of co-CEOship in practice.
The Advantages of the Co-CEO Model
If you’re setting up a new business, there are many reasons to consider bringing on board a co-CEO. Here are some of them:
Boost the Business with an Extra Skill Set
One of the critical benefits of the co-CEO model is that it allows you to bring double the amount of skill sets and talents into your business. Perhaps you’re a genius at marketing and promotion – imagine the boost to the company that would result from a co-CEO who is a dab hand at business strategy and planning. Two heads are better than one, as the saying goes.
A Problem Shared is a Problem Halved
The demands of running a business are huge, as are the pressures that come with it. A co-CEO model allows for splitting responsibilities and tasks and gives you another person to bounce ideas off of. Sharing leadership can mean getting the motivational and emotional support crucial when things are tough.
More Funding in the Pot
And, of course, there’s the issue of money! Creating a business based on a co-CEO model, in which the burden of initial funding is equally shared, alleviates pressure on both parties, and could give you even more money in your start-up pot.
Challenges of the Co-Ceo Model
These are the things you should also consider if you’re weighing up this type of business model:
Managing Disagreements
Disagreements are an inherent element of any partnership, and co-CEO-ship is no different. It’s essential to think about how you’ll manage differences of opinion and find ways to move forward productively.
Decision-Making Dilemmas
A lone CEO may be able to make business decisions – whether of the everyday variety or the major type – relatively quickly and based on their own instincts, preferences, and understanding of the situation. Having a second person on board could make this process more complex.
Lack of Clarity for Staff Members
Similar to the above, having more than one CEO in post can result in a lack of clarity for team members, which could negatively impact your business. It’s vital to ensure that all colleagues know, for example, processes around signing off a project.
Making it Work
There are a few key things to do before embarking on a co-CEO model with your potential partner:
- Agree on the business’s core values and ensure these are aligned. Which things are negotiable, and which are not?
- Pin down, together, the ideal outcomes of the business.
- Ensure that you both understand and agree to take on the responsibilities of CEO-ship and are fully committed to the company in this regard.
Thrashing these things out before taking the next steps to set up a co-CEO company is vital.
How Co-CEO-ship Looks on the Ground
Artlist is a business that enjoys the benefits of having four CEOs in post! Artlist is an Israel-based company that provides royalty-free music, sound effects, and videos to its growing army of users.
Ira Belsky, Itzik Elbaz, Eyal Raz, and Assaf Ayalon founded Artlist in 2016 with the aim of plugging the gap in the market that’s resulted from the evolution of how we use the internet and social media platform creators and viewers in particular.
The multiple CEOs’ combined experience and industry expertise have led to the huge success of the company. Artlist recently announced it’s received a funding injection of $48 million to accelerate its expansion and innovate new tech to help users navigate and use its substantial libraries of tracks, effects, and clips.
Artlist is riding the wave of creator content that’s profoundly influential right now, along with companies like Motion Array and HitFilm, which offer users the opportunity to create, edit, and add music and sounds to their videos; it’s a pioneer of the new digital landscape.
The Future
The way that businesses look and operate is changing. Largely as a result of the pandemic, business models are changing, becoming more organic structures with less clearly defined hierarchies. A new emphasis on people, welfare, and responsible, sustainable practices have also been key to this shift.
Expect to see more businesses adopt the co-CEO model over the coming years as part of the new business landscape. As well as offering rich opportunities for collaboration and bringing multiple strands of skills into a company, this change also indicates a new, more open mentality in the world of commerce that ultimately benefits all of us.
