A Cultural Commitment to Co-Leadership

Unlike other companies, Gensler’s co-CEO model “transcends traditional leadership strategy, representing a fundamental pillar of our organizational ethos which is deeply embedded in the company’s DNA, and goes beyond conventional top-tier management practices”, Simet explained. As the incoming co-CEOs prepare to build upon the legacy of their predecessors, Andy Cohen and Diane Hoskins, who are transitioning to global co-chairs, the ethos of collaborative leadership continues to resonate throughout the firm.

This philosophy of shared leadership is not confined to the executive suite but permeates every level of the organization, reflecting a commitment to co-leadership from the frontline to the boardroom.

Each of the firm’s offices worldwide, along with its numerous practice areas, are co-lead. By implementing this model across various levels and departments, “the company has created a dynamic and resilient organizational structure. This structure is not just about having two heads in the leadership roles; it’s about fostering a culture where collaboration, joint decision-making, and mutual respect are the norm rather than the exception”, added Goldstein.

The adoption of this model—at every level of a firm—is difficult for many multinational companies to comprehend or even afford. But I think it is worth considering, as it can have profound implications for companies that have been more restricted and regulated by the traditional, singular approach. As Simet put it, “it encourages a sense of unity and shared purpose among employees, fostering a collaborative environment. In such a setting, the diverse talents and insights of different leaders are harnessed to their full potential, leading to more innovative and well-rounded solutions to the challenges they face.”

This model also serves as a powerful tool for talent development—but you must walk the talk and prepare for it. Many large corporates will find the model foreign to them—especially if it is only practiced at the top of the organization. For example, by exposing a wider range of employees to co-leadership experiences and responsibilities, Gensler cultivates a deeper bench of skilled and experienced leaders. This not only prepares individuals for future leadership roles but also ensures a steady pipeline of capable leaders who are well-versed in the firm’s culture and values. You may be thinking this helps to lower talent attrition—it does.

Can a co-model make you more competitive? If done right, yes. “This model has been a key driver of the firm’s competitiveness, contributing to its reputation as a leader in the field of architecture and design. The blend of diverse leadership styles and perspectives at all levels of an organization can enable companies to navigate complex projects and markets with agility and creativity” Goldstein commented.

The Co-Leadership Ego Dance

The co-CEO model highlights how structures can significantly enhance an organization’s performance and culture and adopt more collaborative and innovative approaches to leadership. It seems to be working well at $33.7B Netflix (NFLX), where co-CEO’s, Greg Peters and Ted Sarandos, have no shortages of to do lists.

Critics often point to potential pitfalls such as conflicts, inconsistency, and ego collisions. I think sharing power can be an issue for many leaders, but it can also help keep things balanced, or as Chip Kaye, a previous Warburg Pincus co-CEO, stated in a report, the model can “keep their egos in check.”

When it comes to dueling egos, in an interview, Netflix’s Sarandos explained it this way, “You do have to find two people who care more about the success of the company than they do about their title. We have different strengths. We can challenge each other, but still be deferential to our differentiated skillset.”

Proof from market leaders like Gensler and Netflix demonstrate that when implemented more effectively, the co-model can foster collaboration, innovation, and growth that can propel a company forward. One critical step both companies took was to groom the co-CEO’s well in advance. Another was blending the strengths and perspectives of two leaders.

I think this approach has helped Gensler more thoughtfully grow to a $1.0B company without resorting to acquisitions or outside capital, proving that scale and creativity can coexist in large firms. If you are going to consider the co-model—at any level in the organization—here are some guidelines and tips to consider:

Cultivate a Co-Leadership Culture: Embrace co-leadership not just as a structure but as a culture. If possible, integrate this model across the organization to encourage a collaborative, innovative environment.

Define Clear Roles and Responsibilities: Success in co-leadership hinges on clearly defined roles for each leader. This clarity prevents overlap and streamlines operations.

Promote Collaboration Across All Levels: A co-leadership culture thrives when collaboration is encouraged across the organization. This enhances engagement and productivity.

Balance Individual Autonomy with Collective Vision: Co-leaders should have autonomy in their areas while maintaining a collective vision for the company’s future.

Leverage Combined Strengths for Strategic Decisions: Utilize the diverse strengths of co-leaders for comprehensive analysis and robust decision-making.

Prioritize Open Communication: Transparent communication is crucial for alignment and trust. It ensures that everyone is informed and moving in the same direction.

More Than A Leadership Model

A successful co-CEO structure needs to be more than a leadership model; it requires a philosophy that permeates every aspect of the firm. It’s about harnessing the power of diverse voices and collaboration to navigate challenges as a united front. Gensler’s Goldstien added, “The widespread application of co-leadership, from the executive level down to individual offices and our practice areas, must underscore the potential integral role it can play the formulation and nurturing of and organization’s culture and operations.”

This unique blend of shared leadership roles and responsibilities will also put a new spin on corporate governance, competitiveness, and growth goals. Corporate boards will need new approaches to governing, collaborating, and communicating with two CEO’s that have diverse options, duties, agendas, and time zones.

In a governance environment where adaptability and swift decision-making are crucial, co-CEO’s could slow things down, or speed things up, or offer more refreshing and pragmatic impacts on a business. By dividing responsibilities and leveraging the diverse strengths and expertise of two leaders, organizations and boards can respond more effectively to the fast-paced changes and complexities of the global markets and expansion plans.

Moreover, the co-model fosters a culture of collaboration and inclusivity, essential in today’s diverse and interconnected world. As companies increasingly recognize the value of diverse perspectives in driving innovation, the co-CEO structure provides a framework to enhance strategic agility and intellectual capital.

As we look to the future, it’s evident that the traditional models of leadership are evolving. The co-CEO model offers valuable insights into how businesses can adapt to this evolution. It suggests a path forward where leadership is not just about directing from the top but about collaborating, sharing responsibilities, and bringing together different areas of expertise for a common goal.

Co-leadership approaches are situational, and they are not for everyone. If done right, it aligns well with the increasing complexity and interconnectedness of the modern business landscape—and acknowledges that the challenges of the 21st century are too diverse and intricate to be addressed from a single point of view.

Ultimately, the adoption of the co-CEO model is not just about changing who sits in the executive chair. It’s about redefining the nature of leadership itself. It’s about creating a framework where collaboration, diversity, and shared goals become the cornerstones of corporate success. For businesses willing to embrace this, the rewards can be substantial, offering a roadmap to a future where innovation, adaptability, and collaborative success are not just aspirations but realities.

Does Your Organization Need Co-CEO’s?