C-level ‘double-hatting’ (i.e. leading two functions or business areas at the same time) has always been with us, particularly in smaller companies, where broad spans of control are the norm.
In the past few years, however, I’ve witnessed the phenomenon become increasingly common in medium and large organisations.
Whether the scenario is due to cost constraints or the desire to develop high-potential executives, there are pros and cons for the organisation, the ‘double-hatter’ and their teams.
Having recently spoken with a good number of C-level double-hatters about their experiences, below I outline the benefits and challenges, and offer some practical tips for making the situation work for everyone involved.
Benefits
For the Organisation
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Proving ground: The situation not only tests whether a functional or sector specialist has the ability to step into multi-function leadership or general management, it can also provide the organisation with a lower-risk solution to lead a new business venture.
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Agility and trust: An internal leader stepping into a broader role can not only be less disruptive than an external hire, it can also symbolise organisational agility and trust.
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Streamlined decision-making: With a slimmed-down leadership team, communication becomes quicker and more direct.
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Capability building: The mentally and physically demanding nature of double-hatting builds expertise and resilience, while direct reports gain the opportunity to step up and prove themselves as potential successors.
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Cost savings: Reducing senior headcount can have a material financial impact, and makes everyone better value.
For the Executive
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Broader perspective: Exposure to a new function, business area, industry sector or mode (e.g. start-up within an established business) builds expertise, sharpens strategic and commercial acumen, and can foster idea-transfer from one area to another.
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Leadership development: It forces player-coach types out of execution into true leadership – leading through others.
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Skills development: It demands razor-sharp time management, prioritisation and delegation skills.
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Safe growth environment: Gaining broader experience internally is often less risky than in a new organisation.
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Reputation enhancement: Demonstrating the ability to deliver across multiple domains, and flex one’s style, can burnish an executive’s reputation.
Challenges
For the Organisation
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Risk to cohesion: As well as having the potential to unsettle senior team dynamics, if the situation isn’t handled carefully, it can be construed as ‘leadership scarcity’ or ‘short-term patchwork’, which can dampen organisational morale.
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Blurred accountability: A lack of clarity between the CEO, the double-hatting executive and their team risks confusion, as the double hatter is being pulled in many directions.
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Mask for succession: If a person wears two hats for too long, it can mask succession gaps, and signal that succession planning hasn’t been properly addressed.
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Reduced potential for career growth: When one of the ‘big seats’ disappears, high-potentials may conclude there’s less room to grow as the role they were aiming for no longer exists.
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Negative optics: If a business unit or function appears subsumed within another, it risks being seen as less strategic or less valued, which can create retention risk.
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Performance appraisal challenges: Evaluating an executive across dual roles is more complex than in one.
For the Executive
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Volunteered vs ‘voluntold’: Without clear guardrails and mutual trust, the arrangement may benefit the company more than the individual, and may not fit in with the executive’s career plans.
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Risk of burn-out: No executive can deliver two roles at full depth: asking “Am I biting off more than I can chew here?” is a reality.
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Identity crisis: Questions such as “Who am I in this role?” and “Who am I to my team now?” are likely to arise. Being able to answer them guilt-free is critical for the role to be sustainable.
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Reduced innovation: Increased operational demands can limit creative thinking.
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Market appeal: Headhunters tend to pigeon-hole people, and future employers may prefer depth in one function or business area over breadth across several. How will the executive be considered if they want to resume a more specialist career path in the future?
Tips for Success
Here’s how leaders can ensure double-hatting leads to growth rather than burn-out:
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Clarify expectations: Define and communicate why the appointment is being made, and for how long.
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Set clear guardrails: To avoid role creep, agree on role scope, authority and priorities – and what won’t be taken on.
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Consider the consequences: Consider and manage the consequences for others in the organisation for whom this could either be a negative development.
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Manage time ruthlessly: Schedule time for strategic thinking and protect it.
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Empower the next layer: Give direct reports autonomy and invest in their growth.
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Provide support structures: Appoint deputies and project managers to share the load.
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Review regularly: Create structured checkpoints to assess role effectiveness and sustainability.
Conclusion
Whether a short-term organisational fix or part of an executive’s long-term development, double-hatting can benefit the organisation, leaders and their teams. As we’ve seen, however, it comes with significant risks if ill-thought-through.
Ultimately a bridge to the future, not a destination in itself, for C-level double-hatting to work it requires intention, clarity and a willingness to re-think the arrangement if it no longer serves all parties.