When a decision is made, the other founders should pick titles that match their specific strengths. The key here is that co-founders need to determine how they interact collectively as the executive leadership team. Communication and proper processes to discuss the smallest details of strategy, the business or the product should be in place from the very beginning.
Internal power struggle, conflict avoidance problem, no clear chain of command -- all issues that can lead to internal and external strife. Whether you and your co-founders decide to name one CEO, or split the role, the key to success is execution from the founding team. If the founding team is having struggles communicating or making decisions on who leads and who owns which aspects of the business, it might not be in your best interest to jump into the startup world together.
Eric Hanson. Angela Kambouris. Dan Bova. Thomas Hughes. Mark Vickery. But properly managed, the opposite is true. The idea of joint accountability means setting performance standards that put each partner in the position of having to live up to the other. Ideally, this creates a healthy competition. Would-be CEOs are typically high-performing individuals, so clear lanes help each partner drive improvements in the other. Define roles and responsibilities.
The organization must understand who is in charge of which aspects of the company and where decision-making authority lies. We have a highly decentralized workforce — the two of us live in different cities — yet our managers intersect with us with a clear understanding of what types of decisions we are each responsible for.
Clearly delineating areas of responsibility also mitigates another common criticism — that co-CEOs are a bottleneck. In fact, the structure often facilitates a quicker response because one individual has authority to make a decision from a greater depth of experience and knowledge. Distribute authority but not responsibility. While each partner has individual duties, both must fundamentally remain a leadership unit, one in which successes and setbacks alike are owned together.
These successes and setbacks should be reflected in short- and long-term compensation. They must be prepared to be rewarded or penalized as a unit and accept the consequences. Another benefit of this conjoined career planning is that it can both temporary or long term. Some companies may see a co-CEO arrangement as a grooming opportunity for a junior leader.
Your Money. Personal Finance. Your Practice. Popular Courses. Business Leaders CEOs. Table of Contents Expand. What Is a CEO? What Is a President? Special Considerations. Often the CEO and president carry out different duties, and the roles are performed by two people.
At smaller companies or those without subsidiaries, the CEO and president roles are often carried out by the same person. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.
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This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. I serve as co-CEO of an organic meal delivery company with my sister Laureen.
We complement each other well, and the results bear that out. I was devoting so much energy into product, packaging and logistics, but in order for the company to grow, I needed help with marketing, tech and finance.
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