Peer to Peer

Jeffrey Beir isn’t your average CEO. Rather than work his way up the corporate ladder, he abandoned an executive post at Lotus Development four years ago to cofound eRoom Technology, a company that creates virtual workplaces on the Web. Like many entrepreneurs, he soon found himself running a growing business and wrestling with a load of new challenges. Though he had solid skills in technology and marketing, he faced many questions that lay outside the range of his experience: Which headhunter should he use to bring in new managers? How should he develop a strategy for allocating funds? What’s the best way to work with a board of directors? To get answers, Beir joined a CEO peer group. Such groups, typically organized by consulting firms or nonprofit organizations, are now sprouting up wherever there’s a lot of entrepreneurial activity. They offer fledgling CEOs a forum for testing ideas and exchanging advice. And because members have no stake in one another’s business, there’s an unbuttoned openness that’s often lacking in the meetings of senior management teams and boards of directors. Today’s CEO groups, typically organized by consulting firms or nonprofits, are sprouting up wherever there’s a lot of entrepreneurial activity. Beir’s peer group, conducted by the Catlin Group, a Boston-area consultancy, includes eight CEOs who run software companies in different sectors of the high-tech industry. They meet once a quarter for a two-day session to discuss challenges they all confront—everything from managing fast growth, to preparing for IPOs, to hiring talent. Over time, says Beir, the group members have come to trust one another. They candidly discuss their insecurities and concerns, which, he admits, is not always easy when you’re sitting at the top of an organization. Beir credits the group with helping him think through a difficult situation with a key executive. The group also provided him with valuable guidance on financing strategies and valuation, helping him successfully complete a new round of financing. And all the members have shared tips for handling their boards better. “I just feel more confident that I’m not alone in facing these issues,” Beir says. Linda Hutchinson, CEO of Syntha Corporation, a maker of software for the power-plant industry, has also benefited from a peer group. Last summer, she joined the Boston Four (facilitated by the Commonwealth Institute), a group of ten female CEOs from high-tech, business-to-business start-ups. Monthly meetings with the Boston Four, Hutchinson says, have given her valuable advice and feedback, particularly regarding a new business development plan she was creating for her company. Sometimes, the group asks an expert on a particular issue or another prominent businesswoman to join its discussions. Hutchinson says the group has been a source of valuable counsel and support. “I work in an industry that is dominated by males,” she says, “so it’s refreshing to sit at a table with women leaders only.” Despite her hectic schedule, Hutchinson hasn’t missed a meeting. “It’s a time when I know I won’t be in reactive mode, putting out fires. I’ll be looking at the long term,” she says. CEO peer groups aren’t just for entrepreneurs. As the pace of change picks up, even the most experienced leaders are finding themselves facing problems that lie outside their expertise. They, too, are increasingly relying on their peers to help them stay abreast of market and technological shifts. Joining a peer group, it seems, can make life at the top a good deal less lonely.

Peer to Peer

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