The Case for the Chief Executive Office:

Currently, Sky High Billing’s top management does not conform to the typical model.  We do not have a single person as a Chief Executive Officer.  Instead this position is a shared responsibility between four top managers:  Chris Stevens, Sandra Manning, Will Gorgy, and Clarke Pollard.  This structure was not designed by whim or indecision.  The concept of a Chief Executive Office held by a group of top managers was specifically selected due to the particular challenges faced in our industry. 

This concept was pioneered by Robert Galvin of Motorola. 

The Advantages of Shared Decision Making / Shared Responsibility:
 
                                                                                                                                                                                            

                                                                                                                                                                                                                Robert W. Galvin

Stabilization at the Top:  This significantly reduces the chance of a power-vacuum.  When an effective CEO leaves a corporation the tumult that occurs can cripple that organization.  The search for a new CEO is one of the most time-consuming and labor intensive activities any board of directors will face.  Having a Chief Executive Office ensures a continuity of leadership, even if there is rapid, unexpected turnover.

Leaders among Leaders:  This is a fascinating concept which proposes that sharing responsibility at the highest level does not weaken or dilute the skills and abilities of these top leaders, but rather continually challenges and enhances their level or commitment and performance.

Consensus Decision Making:   When decisions must be made by a high level group of executives, the possibility of egotistical or agenda based decisions is reduced, and the chances of decisions made according to a perspective beyond any single individual are maximized. 

Shared Competence:  In the field of high technology it becomes less and less likely that any single Chief Executive can truly grasp and fully appreciate the complexity of considerations that are necessary for effective decision making.   What ends up happening is Single CEO relies on information imparted by subordinates. Even if the Chief Executive Officers do not possess this knowledge themselves, their ability to view these highly complex technical concerns from various point of view dramatically raise the potential of Asking the Needed Question. 

Concerns 

Potential of Stagnation:  If consensus cannot be reached, the company can be crippled by indecision and inaction.

Response:  This will occur when the path forward it not clear.  Instead of viewing this as a negative, it can be seen as an appropriate moment of pause and reflection.  It ensures that forward momentum is not gained, until there is consensus on the proper path to follow.

Lack of Clear lines of Authority:  Ultimate Responsibility can be diluted. 

Response:  Instead of having no one responsible, this model forces all to share responsibility equally.  The Chief Executive Officers accountability to the Board of Directors and Shareholders is no way lessened by this model.  Indeed, the Office of Chief Executive promotes the concept of shared responsibility.  Each member is not only responsible for their own actions, they are responsible for the group decisions as well.  Instead of diluting responsibility, the Office of Chief Executive ensures a significantly higher level of accountability as it exists not only on a personal level but at a shared group level as well.  


Citations: 

 Wining in High-tech Markets: the Role of General Management by Joseph G. Morone 

Succeeding Generations: Realizing the Dream of Families in Business by Ivan Lamberg   

What America Does Right: Learning from Companies that Put People First by Robert H. Waterman 

Six Sigma: Understanding the Concepts, Implications, and Challenges by Mario Perz-Wilson 

How the Wise Decide: The Lessons of 21 Extraordinary Leaders by Aaron Sandoski and Bryn Zechauser