Jul 1, 1991

Looking Out for Number 2

 

Figure out -- ideally before you bring a number two on board -- the principles at the core of what you're trying to accomplish. Make sure the two of you are in agreement. If personal goals figure into the equation -- one CEO, for instance, wanted to optimize the potential sale price of his business -- spell them out. Otherwise, you'll butt heads needlessly. Whatever the basics are, hold your number two accountable to them, and be prepared to be held accountable in turn.

Carve up the territory and stand back. If you really want to build a productive relationship at the top, be specific about who's handling what. You and your second-in-command should pin down each of your areas of responsibility and levels of authority -- regarding spending, hiring, and so on -- and clearly articulate the hoped-for results. Then get out of each other's way -- and be prepared to avoid each other at certain times, if necessary. Of course, most CEOs find that it's painless to draw the lines but next to impossible not to cross them at some point. The name of this particular game is self-discipline: set the ground rules and obey them religiously.

There are some good reasons to stick to your knitting. If you're constantly hovering, your number two will feel less responsible for what happens, which means that all sorts of problems will be yours. The people who work for him or her will soon figure out whose opinion really matters, and they'll try to pull you back into the loop. Ultimately, the person you hired to alleviate your burden will be rendered totally ineffective, and you will become less effective by taking that burden back on yourself. No matter how neatly you define your respective roles, rest assured there's always going to be some overlap between the two of you. Ideally, though, you'll think twice before you gum up the works.

Loyalty. Inexperienced CEOs think they want loyalty. They think that what they want is a hardworking servant who's good at following cues. But don't kid yourself. When it comes to making critical decisions, loyalty can be a big handicap. What you need is somebody who can stand up to your crazy ideas.

Understand, we're not talking about someone who will undermine your basic principles. We're talking tactics -- how you move ahead, how you use resources to meet your goals. "You want somebody who can help you think things through," says Mike Shanker, the second-in-command at Broadway & Seymour Inc., a computer-services company based in Charlotte, N.C. Often, that means somebody who can tell you you're wrong.

Find a style of communicating that works. CEOs, as a group, seem alarmingly undisciplined about the way they communicate with their number twos. They don't see that interaction as a big issue. Ironically, their seconds-in-command see it as their bosses' single biggest problem area. Many complain that their CEOs don't take the time to talk; others complain that the communication is too random and informal -- which, in their minds, indicates lack of respect for their position.

Communication is one of those disciplines you simply can't ignore. One way or another, you need to find an approach that works. Is there a system that works for everyone? Clearly, no. But if catch-as-catch-can isn't working for you, try holding regular meetings. Several number twos have found that weekly or bimonthly meetings help them get a clearer understanding of what the owner is thinking. Such meetings also offer a regular forum for presenting ideas.

Talk more than you think you have to. Some CEOs and their number twos go a step further in the communication department. They set up special meetings just to talk about how things are going between them. Often, those meetings are held off-site, away from constant interruptions -- over breakfast, for example. As one number two, a woman from Florida, explains it, these conversations are not just catch-up sessions but focus specifically on what's not working and how to fix it: "I'll use our sessions to say, 'Here's a situation we could have handled better. Next time, could you try to do it this way?' And he'll do the same."

"When you work as the number two, it's easy to get demoralized," adds Anne Dikovics, vice-president of Home-medic Lifeline Inc., in Pennsauken, N.J. "It's a very lonely job, so you need to create a mechanism for feedback."

Don't lock horns in broad daylight. We said it above: disagreements can be good. They can lead to smarter, better decisions. But be conscious of where you have them. Understand that if you and your number two voice your differences in front of other people, you'll lose control over how things are interpreted once a decision is made. No matter what the issue is, employees are going to look for a loser, and that "loser" will have a tough time implementing the decision once the dust has cleared. "It can set off a really negative dynamic within the organization," says one second-in-command, who's had to eat his words more than once.

You can't anticipate every disagreement. But you should be able to flag the other person if potential differences emerge. "We can tell if we're sitting in a meeting and we're not on the same sheet of music," says Bill Finck, Dikovics's boss at Home-medic Lifeline. So what happens? "Well, usually, we table that part of the discussion and find a time to talk about it privately," he says. If you can't find a way of alerting each other, be prepared to face the consequences later on.

Go away often and don't call. Technology makes it much easier for CEOs to get away -- and, at the same time, harder for them to actually leave. We heard about a CEO, for example, who would regularly use his car phone to call his number two, just minutes after he'd pulled out of the parking lot. In a lot of cases, he'd just ask, "What's happening?" To which the number two would sarcastically reply, "Nothing's different from when you were here, except it's a little quieter."

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