After Hours
Director logo
leadership
Dual control
by Sarah Hanson

Is it a sensible solution to the demands of modern business or a recipe for chaos? What's behind the boom in job sharing at the top level?

Are two heads better than one when it comes to leading an organisation? Azim Premji, chairman of IT company Wipro Technologies, seems to think so. In April this year, he announced the appointment of joint CEOs Suresh Vaswani and Girish Paranjpe, saying the pair "would give twice the leverage to seize opportunities in the IT, research and development and BPO services sectors".

José Luis Alvarez, author of Sharing Executive Power: Roles and Relationships at the Top, says the life of top managers is now so complex that they cannot cope with the demands. He cites over 100 companies where the top job is shared by two—or sometimes more—people.

But power sharing doesn't always work. In July 2007, aerospace giant European Aeronautic Space and Defence (EADS) announced that Thomas Enders and Louis Gallois would no longer share the role of CEO, with Enders stepping down to run the Airbus subsidiary.

Andrew Kakabadse, professor of international management development at Cranfield School of Management, isn't surprised that CEO job shares fail. "It's impossible to share the same vision of where you want to take the business," he says. "Sharing the top role in a large company is a political fudge, which often happens at the time of a merger or acquisition where two egos won't give way to each other. It often works out so badly that both leave because they have undermined their authority within the organisation. It's like having two mothers in one household with one set of kids."

He believes, though, that the case for job sharing may be stronger in smaller companies: "I can see how sharing the top role might work if the business is partnership-based, and the joint managing directors or CEOs are sharing roles."

Whatever the size of the organisation, certain factors such as trust improve the chances of success. Here, Director  talks to two managing directors and two CEOs who are making job sharing work.

NavyBlue
Who Geoff Nicol and Doug Alexander

When one of their clients (Drambuie) offered Geoff Nicol and Doug Alexander the funding to set up their own design agency they jumped at the chance. In 1994 they set up NavyBlue in Edinburgh. They started out as joint creative directors, but their roles changed to joint managing directors because of the pace at which the business was growing (there are now 64 staff).

When Nicol met his London-based wife he and Alexander decided to open an office in Clerkenwell. Alexander ran the Edinburgh office; Nicol looked after London. "We ran two different companies, delivered profits, and Geoff and I drew the same salary," explains Alexander.

NavyBlue changed dramatically when the London and Edinburgh office worked together on a pitch to design the documentation for London's bid to host the 2012 Olympic and Para-Olympic games. "My role was to support Geoff, so the client knew that we knew what we were talking about. It was a huge success. We won, and had great fun. We agreed we would to do it more often."

Remaining joint managing directors, Nicol and Alexander restructured their roles. "We play to our strengths now," says Alexander. "I look after the account management teams. I am also responsible for everything financial and legal—in short, all internal processes. Geoff likes talking so he looks after all the external stuff-marketing and PR."

"If Doug and I were morphed together we'd be quite an entity," says Nicol. "I use Doug to get things going, he uses me as a sounding board. We both want to grow the business and create a culture where people are important. I know what makes him tick."

At the heart of the partnership are communication and complementary skills, says Nicol. "There has to be a balance," he explains. "We run the group together using our combined and individual strengths. It has taken eight years to work out how to do it as well as we do now."

That's not to say they don't have their disagreements. "We've fallen out big time over things like profitability and goals," says Alexander. "We've had some belters, screaming and shouting, but we always make up and then it is even better."

"One of the most difficult things to do is decide when to back down and when to hold firm," adds Nicol. "It's a test of our relationship that we bounce back strongly."

Their leadership styles differ dramatically. "I wear my heart on my sleeve—I'm utterly transparent," explains Alexander. "Geoff is more contained. But some of the team feel more comfortable talking to Geoff; some me."

Nicol and Alexander communicate up to 10 times a day and use videoconferencing for meetings. "I wouldn't come to work and not call Doug," says Nicol. "We call in the morning, during and at the end of the day. We sign in and sign out," he says.

The pair see each other in person once a week. And although the joint role means double overheads, Alexander says it is worth it. "You get double the brain pool and double the personality," he says. "As long as you don't replicate roles, then I can't see any disadvantages." Nicol agrees. "It's great being able to get a peer review and having that camaraderie—it can be lonely at the top."

Engine room
Who Peter Scott and Debbie Klein

Since advertising agency WCRS was bought out from French holding company Havas in 2005, it's evolved into the Engine Group, a partnership of 12 communications businesses employing 600 people. With big ambitions for the future, group chair Peter Scott last May decided the business needed two CEOs. He is one; the other is Debbie Klein, chair of WCRS.

"I deal with shareholders and bankers that have nothing to do with the day-to-day operations of the business—so there was an absolute need for two people to do the job," says Scott. "There was no way I could have done both. I've been the architect in building the initial foundations, while Debbie makes it work. We have different skill sets—I couldn't do what Debbie does and vice versa," he says.

Scott's commercial background has led him to focus on the financing of the group, the management buy-out, subsequent acquisitions and the development of the business over the next three years. Klein, whose background is "more focused on the craft and skills of the business", oversees the day-to-day running of Engine-expanding the client base, developing systems and processes for clients, and looking for ways to build client relationships.

"In a growing business like ours there's a lot of ground to cover," says Klein. "If you're on your own you can feel like you're only dipping into various issues—we are able to look more in-depth. Peter is able to look much more strategically at future growth for Engine without getting bogged down by the every day running of the business, and this helps me in the short-term," she says.

Klein and Scott are very clear on their roles, with different people reporting to them. "Generally, one will take the lead on a project," explains Klein. "Peter and I keep each other up to date in different areas-we don't double up on anything. We both do different things. I don't think it would be very helpful if we shared an office—but we are right next door to each other."

Only a few months into the new joint role, Scott and Klein have been developing it as they go. "So far it is going very well. We haven't trodden on each other's toes at all," says Klein. "Peter and I had already worked together for four years before this. We have the same values and views on how the business should be run, how to treat people and where we want it to go."

When it comes to making decisions, Klein says she and Scott enjoy a bit of "healthy debate". "Peter and I are not afraid to disagree with each other. You get to a better place by debating—we both point out different perspectives the other might not have seen—two heads are better than one. It's a very modern way of running the company," she says.

Scott agrees. "We may have different points of view. If necessary, we'll bring in other people. I have the highest regard for Debbie. She is massively high on integrity. She is tough but she defends her people. I know she's never going to be a pushover. You should never go to Debbie with an argument that's half thought out because she'll unravel it and find holes. You have to do your homework. Debbie and I have a huge amount of mutual respect."

Scott believes there is another important factor in their relationship. "Debbie and I are both significant shareholders in a privately owned group so there is no politics. Debbie is not trying to get my job and vice versa. We are co-owners of the business and that makes it fundamentally different."

About Us | Contact Us | Director Publications | IoD | © 2008 Director Publications