ExCo vs C-Suite: Which Leadership Structure Works Best?

Which Board Structure to choose?

In many organisations, board leadership structures are taken for granted. But as the business evolves, so does the way leadership operates. Whether you’re managing through growth, preparing for acquisition, or responding to a shift in culture or strategy, the structure of your senior leadership team plays a vital role. For HR, OD, and CPO leaders, understanding the variety of board leadership models and their implications is key to influencing sustainable, impactful change. In this article, we’ll explore different operating models: from classic C-Suite setups to Executive Committees (ExCo), functional boards, and hybrid approaches. We’ll also draw from recent UK-based examples, good and bad, to reflect on what really works and why it depends.

Understanding the Models

• C-Suite: This is the traditional executive tier model, CEO, CFO, COO, CHRO, etc. where each role holds defined authority and often statutory responsibility. It’s lean, focused, and common in organisations prioritising clarity and speed.

• Executive Committee (ExCo): A broader leadership forum that may include Directors or senior function heads who aren’t statutory officers. It’s useful for operational alignment and cross-functional input but can become bloated or unclear if not carefully managed.

• Hybrid Models: Increasingly common. These separate governance from operations, for example, a tight C-Suite with a rotating extended leadership team attending as needed. This can support agility and inclusion, if designed well.

• Functional Boards: In some industries, especially regulated sectors, we see boards built around legal responsibilities (e.g. compliance, risk). These often overlap with executive roles, demanding careful boundary setting.

Recent Examples: What We Can Learn

Tesco: After its accounting scandal, Tesco rebuilt trust by redesigning its ExCo to clarify decision rights, introduce fresh perspectives, and separate governance from operations. This helped realign leadership with strategy and culture. The lesson? Structural reform worked because it responded directly to a known failure.

Brewin Dolphin: Before its acquisition, internal reviews noted sluggish decision-making and confused role boundaries between its ExCo and C-Suite. This reinforced the risk of over-layering leadership teams without ensuring real clarity or ownership.

ZPG (Zoopla Property Group): A lean C-Suite was deliberately maintained following private equity investment. It prioritised agility, enabling quick pivots in product strategy and investment focus. Here, simplicity supported execution, especially in a change-heavy, scale-up context.

Co-op Bank: Facing regulatory criticism for poor governance, Co-op adopted a split model: a statutory board focused on oversight and a revitalised ExCo for operations. This dual-structure restored confidence and set up clearer escalation lines.

What To Watch Out For

If you’re thinking about your leadership operating model, ask:

• Is the current structure helping or hindering pace?

• Do people know where final decisions are made?

• Are roles designed around strategy or legacy?

• Does the leadership group reflect the organisation’s future, not just its past?

Leadership structures should evolve. Sticking with a model just because it ‘worked before’ can quietly slow progress or create unhealthy power dynamics.

Our View: There’s No Universal ‘Best’

Over the years, we’ve seen that structure alone rarely solves problems, but poor structure nearly always makes them worse.

ExCo isn’t always the answer. In fact, for businesses that need faster decisions or tighter accountability, like those preparing for investment, a well-defined C-Suite can be far more effective.

On the other hand, inclusive leadership forums like Bupa’s or Tesco’s reworked ExCo can boost alignment and reduce silo thinking, if they’re kept purposeful.

Whatever model you use, what matters is:

• Decision rights are clear

• Meetings drive decisions, not just updates

• The structure mirrors your business ambition

HR and OD leaders are often the first to sense when a structure is no longer working. Trust that instinct and push to evolve it.

 

Crib Sheet: Reviewing Your Leadership Operating Model

What’s the current leadership structure called and how is it actually used?

Are decision-making rights clearly defined and communicated?

✔️ Does the structure reflect current strategy, or legacy arrangements?

✔️ Is there confusion between authority and influence?

✔️ Do extended forums add value or just layers?

✔️ Have we involved HR/OD in shaping leadership design?

✔️ Have we reviewed the model in the last 18 months?

✔️ Can we explain the structure to a new hire in one slide?

Use this crib sheet in leadership offsites, annual reviews, or strategy days to sense-check if your structure still serves you.

We hope you’ve found this article helpful and if you would like to chat with us, feel free to drop us a line at info@theleadershipcoaches.co.uk