Dual leadership: Why two CEOs can be better than one

Leadership is more than strategy and numbers - it is also about managing people, driving innovation and keeping an eye on day-to-day operations. After seven years of company growth, we have come to realise this: It is almost impossible to do it all on your own. Strong leadership requires focus, and focus is better shared when two people with different strengths are at the helm. Michael Kania is responsible for the operational side of business development and marketing, while Matthias Risto is responsible for the strategic side.

The decision for a co-CEO structure was therefore not a spontaneous idea, but a strategic necessity. While one person can focus more on setting the strategic direction, the other can concentrate on market-related issues such as customers and sales. This makes it possible to deploy strengths more effectively and avoid duplication. Especially in the context of Leadership 4.0 - where agility, digitalization and new leadership models are at the forefront - dual leadership offers clear advantages: more perspectives, faster decisions and a more stable organization.

As highlighted by Feigen et al. (2022), the Harvard Business Review aptly describes how co-CEOs not only bring more expertise to the table but also enable a more stable succession plan. This model also increases diversity at the executive level and provides a broader strategic perspective. However, it is crucial that roles are clearly defined and decision-making processes are coordinated — otherwise, there is a risk of chaos rather than efficiency. That said, it is not suggested that all organizations should rush to adopt a co-CEO model. For firms in stable industries facing only moderate disruption, having a single CEO may still be the better choice. However, as the role of running a company has become increasingly complex and multifaceted, the co-CEO model deserves a fresh and thorough consideration, particularly for companies shifting towards agile management or undergoing technology-based transformations.

In this context, digital transformation plays a pivotal role, not only influencing the technologies we use but also requiring a comprehensive redesign of our business structures and processes. As various studies show, it is not enough to simply implement digital technologies to achieve the desired success. Rather, it requires the integration of social and technical approaches, as well as the implementation of new organizational structures and the development of innovative business models (Yoo et al., 2010; Troilo et al., 2017).

It was crucial for us to respond to these demands with a flexible and effective governance structure. We therefore deliberately chose the co-CEO model. This model allows us to combine different perspectives and skills, ensuring that both the strategic direction and the operational challenges of digital transformation are given equal attention. The dual leadership ensures that we cover all relevant aspects - from technological transformation to the implementation of new business models and structures".

There are several success factors for a functioning co-CEO structure in a dual leadership structure. As a company, we rely on the 9 success factors identified by Marc A. Feigen (CEO, Feigen Advisors), Michael Jenkins (Partner, Kearney) and Anton Warendh (Director, Feigen Advisors), which we consider to be particularly relevant. Today, however, we would like to share with you our top 3 success factors. These have proven to be particularly valuable in our practice and we are happy to recommend them as the basis for a successful co-CEO partnership.

1. Clear Responsibilities and Decision Rights
   ‍One of the biggest challenges in a co-CEO structure is to clearly delineate and define the responsibilities of each CEO. Without this clear delineation, conflicts of responsibility can arise, leading to misunderstandings and ineffective collaboration. A clear definition of roles ensures that responsibilities are clear and minimises the risk of overlap or unnecessary competition between the co-CEOs. It is essential that the co-CEOs play to their respective strengths and areas of focus.
   As CEO, Michael Kania, who comes from regulatory affairs, focuses on business development, marketing and communications as well as product vision. Matthias, who stepped into the co-CEO role as CTO, is increasingly taking on management roles and is responsible for finance. At the same time, he maintains close contact with the development team and works strategically with the Head of Development. Both CEOs share responsibility for the company's overall strategy and ensure its coherent and successful implementation.
2. ‍Shared Values
   Honesty, respect and a willingness to compromise are the values that underpin our working relationship. This sounds simple and easy to say, but in fact both CEOs work every day to live these principles in the Co-CEO structure. We do not believe in rigid hierarchies, but in open dialogue at eye level. For us, leadership means sharing responsibility, making decisions together and always listening to each other. It's not just about the right words, it's about daily practice: building trust, being open to difficult issues and finding flexible solutions. This is how we create a culture where collaboration is valued over control and where everyone has the freedom to contribute their strengths.
3. ‍Mechanisms For Conflict Resolution
   ‍Conflict is often inevitable in a co-CEO structure - different perspectives, working styles or decisions can lead to tension. But this is where the true value of conflict resolution skills comes into play. It's not about picking a 'winner' or 'loser', it's about working together to find a solution that is in the best interests of the company. This ability to engage constructively should be the essence of a CEO's personality. This is why both CEOs place great emphasis on personal development and soft skills, in order to be both strategically astute and empathetic in such moments. This is the only way a co-CEO structure can work successfully in the long term and lead to a respectful, solution-oriented corporate culture. Strategy is often separated from soft skills, but it is these skills that form the basis for implementing visions and overcoming challenges. Without soft skills, the strategic direction lacks the shape and direction necessary for long-term success.

In summary, a co-CEO structure is more than just a practical division of responsibilities - it is a real challenge that requires courage, trust and a strong partnership. We are excited about the path ahead at meddevo - dytab GmbH and look forward to strengthening the team and building a healthy and sustainable corporate structure based on cooperation and mutual respect.

Sources:

1. Feigen, M. A., Jenkins, M., & Warendh, A. (2022). Under the right circumstances, it's remarkable how much co-CEOs can do. Harvard Business Review, July/August 2022.
2. Troilo, M., De Luca, L. M., & Guenzi, P. (2017). Organizational learning and customer satisfaction in a business-to-business context. Journal of Business Research, 80, 50-58. https://doi.org/10.1016/j.jbusres.2017.07.005
3. Yoo, Y., Henfridsson, O., & Lyytinen, K. (2010). Research commentary – The new organizing logic of digital innovation: An agenda for information systems research. Information Systems Research, 21(4), 724–735. https://doi.org/10.1287/isre.1100.0322‍