Behind the scenes of the prosperous company run by the Brown brothers, prevailed hostility and tension, since Dave Brown had always felt inferior to his elder brother, Martin: the dominant figure both in business and family.
When the founders, Martin and Dave, decided to hand over the management rains to the next generation, the hidden rivalry became an open struggle. Danny, Martin’s son, supported by his father, was determined to occupy the CEO position, while Dave and his daughter, Tammy, insisted that Tammy deserves the job.
It seemed the conflictual legacy passed on from the first generation to the next one, would thwart any effort to reach a rational and adequate decision concerning the identity of the new CEO.
So far, Tammy, an accountant in her training, had served as the firm’s CFO, while Danny has served as CMO. Tammy, convinced she was much more qualified for the CEO position than her cousin, turned to me for help.
Identifying needs: I was facing a double challenge. On the one hand, I had to consider, from a professional and business point of view, who’s more qualified for the CEO position: Danny or Tammy. On the other hand, I strived to find a way to reduce the flames threatening to tear the family apart and to ruin the family business. Therefore, I was looking for a golden mean: a solution that would bridge between the firm’s interests and the emotional needs of the family members involved in the firm.
Tailoring solutions: My meetings with Martin and Dave and the meaningful dialogue I held with both Danny and Tammy, concerning the firm and its future, enabled me to get acquainted with the skills, the business approach, and the professionality level of each of the two candidates for the CEO position.
My conclusion was that Tammy had better strategic vision and skills than her cousin, and therefore, was more fit to lead the firm. At the same time, it became clear to me, that Danny would not be able to swallow his pride and give up on the CEO position, just to stay a CMO taking orders from his cousin.
Consequently, I suggested a new and unique framework: Danny and Tammy would serve as Co-CEOs with equal powers but with different professional responsibilities. Danny would focus on marketing, while Tammy would focus on financial affairs as well as on business development – an area neglected so far in the firm. This way, Tammy would have the greater influence on the firm’s strategy and development.
The process: On my part, I was convinced I found a creative solution, which balanced well between business and family needs, but I also expected some resistance on my client’s part. At first glance, I reckoned, they would feel my plan forced them to compromise too much.
To soften Danny and Tammy and to make them realize the advantages of sharing the CEO position, I held a series of joint meetings with the two of them. This gave me an opportunity to improve the shaky communication between the cousins and even to establish a fertile dialogue between them. In addition, we manged to agree on some well-defined working patterns, which would allow the new Co-CEOs to function smoothly enough vis-à-vis the firm’s workers and external stakeholders and vis-a-vis each other.
Just as I assumed and hoped, eventually, Danny agreed to give up on some of the powers traditionally given to the CEO and to leave Tammy responsible for finance and business development. The formal CEO title and feeling equal in status to his cousin satisfied him well enough.
