Often Two executives act as Ones for their functions, but Twos as members of the executive team. For example, the head of sales might easily make all… - Ben Horowitz

courage is particularly important, because every decision that a CEO makes is based on incomplete information. At the time of any given decision, the CEO will generally have less than 10 percent of the information typically present in the post hoc Harvard Business School case study. As a result, the CEO must have the courage to bet the company on a direction even though she does not know if the direction is right. The most difficult decisions (and often the most important) are difficult precisely because they will be deeply unpopular with the CEO’s most important constituencies (employees, investors, and customers).

Feedback won’t be personal in your company. If the CEO constantly gives feedback, then everyone she interacts with will just get used to it. Nobody will think, “Gee, what did she really mean by that comment? Does she not like me?” Everybody will naturally focus on the issues, not an implicit random performance evaluation.

Nonetheless, at some point the monolithic design of one huge organization runs out of gas and you will need to split things into smaller subgroups. At the most basic level, you’ll want to consider giving the groups that you’ve specialized their own managers as they grow.