For years, I have promoted the concept of developing your second-in-command. It’s now a growing trend in the industry.
Three years ago, we started a second-in-command peer group at Jeffrey Scott Consulting to develop chief operating officers and division managers overseeing at least $5 million in revenue. We have learned much from this commitment.
We know that all successful company owners need a high-functioning leadership team. A portion of our consulting is focused on building and developing that team. But to grow even stronger, we found that many entrepreneurs need a “leader of leaders,” an empowered second-in-command to help run the entire business.
Some very famous entrepreneurs have employed this position. Steve Jobs at Apple had Tim Cook, and Ray Kroc at McDonald’s had Fred Turner. You can use this same concept, too.
Here are the five compelling roles a second in command — or a No. 2 — can play in your business.
1. Implementer
The main role of a No. 2 is to help keep the operation healthy, streamlined and operating within budget. The implementer is a tactical position with equal parts organizer, process builder and coach. It’s all about people, and the implementer must be highly skilled at managing managers and leading leaders.
In this role, the No. 2 acts as a filter, taking the steady stream of ideas from the owner and prioritizing and filtering them. Desiree Bouchard does a great job of this as the general manager for Great Lakes Landscape Design in Oak Park, Mich. She has to manage up to Great Lakes’ owner, Ivan Katz, and of course manage down to the rest of the team.
2. Complementor
Sometimes the role of the No. 2 is to focus on areas of the business that the owner does not have the time or the skills for. For example, as an owner, you may be best at production management but need someone better at maintenance management.
Andy Tumolo with Maple Leaf Associates in Putnam Valley, N.Y., is someone who has enjoyed more freedom and overall growth in his business after he brought in a general manager for all his maintenance services.
3. Successor
This is a transitory role where the second-in-command is studying under the owner to take over the role of CEO of the business, and sometimes the intention is for the successor to buy the business. It takes extra care to choose someone who can both run and buy a business, but Matt Hunter, the president of New Garden Landscaping & Nursery in Greensboro, N.C., is an example of someone who has taken this route to ownership.
4. Mentor
Sometimes an owner will hire an older, semi-retired person to act as both chief operating officer and mentor to the owner. It’s an odd couple, but it helps the younger owner gain confidence and skills.
I know of a second-generation sibling group that bought out their father and used this model to help gain their sea legs in the business.
5. CEO
Barney Naylor of Naylor Landscape in Kalamazoo, Mich., is a long-time client who needed to bring in a strong COO to run the operations. The business had plateaued, and while he wanted to keep growing, it was time for him to enjoy outside pursuits.
After doing our due diligence, we opted to bring in someone so strong that he could almost operate as the CEO. That’s not their official role, but they manage the whole company, achieving higher profits than ever before.
We also have helped clients onboard formal CEOs to run their businesses. It’s all possible and a surefire way to grow your business.
If you are looking for this role at your firm or want to join our second-in-command peer group, email me at jeff@jeffreyscott.biz, and we can discuss options for your business.
