At the beginning of this month, private equity pioneer Jon Moulton quit Alchemy, the group he founded, then proceeded to lambast the team that he’d built in a letter to all of their clients. So where did it go wrong for a group that, until recent years had been extremely successful? In my view, the pilot stopped listening to the co-pilot.
Like running a business, flying an airliner in good weather is pretty straightforward. But the majority of crashes don’t happen in good weather, they happen in poor conditions, usually with a number of coincident factors that make the pilot’s job increasingly difficult and his attention very thinly spread. This is when great co-pilots make all the difference. The same is true for business.
Moulton was the last of three partners, the second of whom, Martin Bolland, was widely considered to be the key detail-man behind the scenes. Bolland left in 2007, reportedly due to his frustration with Moulton’s lack of succession planning. Whilst Moulton was the captain, with the profile to match, Bolland was the quiet co-pilot, checking the detail, preventing mistakes, and adding the depth of experience that key investors require. Whilst Moulton hand-picked his successor, Dominic Slade, they never forged the same quality of relationship. As the downturn bit, the pressure mounted. Moulton rejected Slade’s strategy, the voting partners prepared to reject Moulton, and Moulton walked, dropping a grenade in the atrium on his way out.
In reality, Moulton lost his co-pilot and replaced him with a protégé. When their visions for the organisation diverged, their weaker relationship didn’t allow them to come back together and create a unified strategy. Why am I using the term “co-pilot”? Because a co-pilot is more than just a senior team member. The term "co-pilot" implies a mutual dependency and a balance of responsibility; demanding a higher level of understanding and communication. Most of all though, it implies a deep and trusting relationship.
In business, especially in poor trading conditions, it’s the CEO that is stretched in umpteen different directions. Whether it’s hostile take-overs, fundraising, creditor agreements, restructuring, or shareholder pressure, it leaves little time for flying the plane. In this situation team members aren’t enough; you need genuine co-pilots.
Team member or genuine co-pilot?
How many of your team are there to perform their roles, and how many are genuine co-pilots? Here are seven signs.
A genuine co-pilot is someone who:
- Shares your values and your vision
- You actively consult with for their opinion
- Can take your place for an extended period
- You would fight hard to keep if they chose to leave
- Has the confidence to directly challenge your judgment
- You trust enough to make complete decisions in your name
- Is viewed externally as an essential element of your organisation
In Alchemy’s case, when the poor economic conditions brought deals to a halt and put many of their investments underwater, with no trusted co-pilots in the cockpit, Moulton grabbed a parachute and bailed. In fact, when you consider what a good co-pilot offers, it’s surprising how common it is for leaders to try to fly without one.
