Future-proofing your business: Finding and nurturing your Number Two

Key points: 

• Having a reliable Number Two allows you to focus on strategic goals and explore new opportunities
• Empower your Number Two by giving them decision-making power and recognising their contributions
• Supporting your second in command can help maintain company culture in times of transition

As a middle market business owner, you have a lot on your plate. You are responsible for the vision, strategy, and growth of your company. You have to manage multiple stakeholders and navigate the challenges and opportunities of a changing market and economic landscape. You have to balance the needs of your employees, your customers, and your bottom line. This is where top performing talent becomes invaluable. The key to managing this complexity is having a reliable “number 2” – a trusted second-in-command who can handle daily operations and strategic execution effectively. No leader is an island. Even the most capable benefit from support. Batman had Robin. Sherlock had Watson. Maverick had Goose. But how do you find these key people? And what does it take to keep them engaged and able to support you and your business? 

Why you need a number 2 

A number 2 is not just a subordinate, a follower, or a yes-person. A number 2 is a partner, a leader, and a trusted advisor. A number 2 is someone who can complement your strengths and compensate for your weaknesses.  They can bring a different perspective and fresh insight, offer constructive feedback and honest advice, inspire and motivate you and your team, and who can help you achieve your goals and realise your potential. 

The benefits can touch every facet of the business, including: 

1. Increased efficiency and productivity: A strong number 2 that’s engaged with your business can streamline operations and optimise processes. According to a Gallup study, companies with highly engaged employees show 21% higher profitability and 17% higher productivity. 
2. Enhanced profitability: Having someone to whom you can delegate responsibilities with confidence can positively impact your profit margins. In fact, delegation and management can reduce costs and increase revenue, with an additional Gallup report highlighting that effective delegation can boost company profitability by up to 33%. 
3. Accelerated growth: Having the right number 2 can drive innovation and market impact by expanding your market and customer base, developing and launching new products and services, and exploring and entering new segments and regions. They can also play a role in fostering a culture of creativity and learning, and they can facilitate effective change management by embracing change that comes with innovative business strategies. 

How to find a number 2 

Finding the perfect number 2 can feel like a daunting task, but there are a number of options to explore: 

1. Internal talent: Look within your organisation for someone who has shown initiative and consistently delivered results. They should align with your vision and values. The possibility of job mobility can also improve employee retention, with staff who have moved roles internally having a  64% chance of remaining with an organisation after three years
2. External network: Seek candidates with proven track records and relevant experience. They should bring fresh perspectives and have a network that complements your business. 
3. Clear expectations: Define the role, responsibilities, and expectations clearly. Equally, make it clear to potential leaders the benefits of the role, the workplace and the Employee Value Proposition that your business can present. A strong EVP can support employee retention more generally and

How to nurture and retain your number 2 

1. Autonomy and authority: Empower your number 2 to make decisions and lead effectively. Start involving them in major meetings, get them across the business finances and start to make them a stakeholder in strategic decision making. 
2. Recognition and reward: Regular acknowledgment and appropriate compensation are crucial. Companies with recognition programs see a 31% lower turnover rate. 
3. Challenges and growth: Provide opportunities for development and new responsibilities. The opportunities to grow a professional network, acquire new skills and to explore innovative ways of working can drive positive impacts to your business by extension too. 

Impacts on businesses leaders 

1. Work-life balance: A reliable number 2 allows you to focus on strategic goals and the big-picture parts of the business, as well as improving your work-life balance and allowing more time for things outside of the professional sphere.  
2. Succession planning: Often armed with the appropriate business knowledge and skills to step into the leadership role following retirement or transition of executives, a number 2 can help ensure business continuity and a smooth transition. They can help to safeguard the legacy and the reputation of your business, and enable you to plan for your exit. According to the latest Pitcher Partners Business Radar report, Australian middle market businesses generally plan to pass their business on to someone they know – a family member (20%), internal candidate (19%) or co-owner (15%). Having that trusted support makes the succession process easier, more sustainable and helps to protect company culture during the change management phase. 
3. Strategy and growth: A capable second in command can bring new ideas and fresh direction to a business, potentially highlighting new revenue streams, ways of working and process improvements. As they take more responsibility for managing such elements, it means that leaders can spend more time working on the business, and not in the business. 
4. Making a difference: With strong support in managing the operational aspects of the business, you can amplify your impact and leave a lasting legacy

Finding and nurturing the right number 2 is crucial for maximising your business’s potential and achieving long-term success. By focusing on internal and external talent, clearly defining expectations, and providing the right support, you can ensure that your number 2 will be a pivotal part of your company’s growth and sustainability.