Why 'Founder Mode' isn't a one-size-fits-all solution to leadership


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If you haven't caught the dialogue around “the way of the founder” Recently, let me bring you up to speed: Brian Chesky, the founder and CEO of Airbnb, has has recently been celebrated for his refusal to step back from the driver's seat amid claims that his decision to retain control is one of the reasons for Airbnb's enviable growth. Some have even compared him to Steve Jobs, with Chesky apparently thrilled by the association.

But before we defend founder mode as the be-all and end-all of creating a unicorn, let alone building a successful business, we need to explore and analyze why and when it works and also why it can sometimes do a service. bad. both for the employees and for the business itself.

But first things are positive.

Yes, the founders have one visionand yes, they are uniquely positioned—and invested—when it comes to turning that vision into reality. They are also usually goal-driven, which is no small thing in the entrepreneurial world. After all, not everyone can buy into something in depth when they aren't the ones who conceived it. Take a look at Nvidia CEO Jensen Huang's comments from earlier this year, in which he told the Z-grade generals of lower their expectations about work. His comments were met with some backlash, but they drive home the point that few people will be as committed to the cause as the company's founder.

Related: What is founder mode and why is it better than manager mode?

From a growth perspective, the longer a founder stays, the better a company performs. Plus, having the founder present and engaged workforce signals that the company has staying power and that the founders themselves are eager to power the business into the future.

Another key aspect of operating in founder mode is the ability to be very adaptable. With less red tape, founders can make decisions more efficiently and respond quickly to changes. Businesses with multiple layers of approval often struggle to move at the necessary speed.

But as a business grows, one-man teams rarely get the job done (every element).

Any smart business leader will tell you how crucial it can be to surround yourself with people you trust from the start—whether in an advisory or leadership capacity. I would argue that founders need experts in their own right who offer something they can't – or perhaps more than they can offer on their own. Like-minded opinions offset by different perspectives and experiences are vital. Innovation cannot happen among a “yes” crowd.

When founders don't relinquish some degree of control, delegate responsibilities, and empower their deputies, they create a situation that is ripe for frustration for everyone involved. Burnout, exhaustion, frustration… you name it.

That's why executives need to recognize the signs that it's time to relinquish full control of the company. If operations slow down because every decision requires the founder's approval—creating a bottleneck in the decision-making process—it's a clear signal to delegate some responsibilities. Another sign could be the founder slowing down expansion into new markets. Recognizing these signs is essential, as they indicate the right time to move beyond founder mode.

Related: How to Start a Business, Even When You're Afraid: Gary Vee

As someone who helped power a founder's mission forward more than a decade ago—and is still supporting that mission today—I know from firsthand experience how important a role my colleagues and I have played in making the this mission. And I know our founder would say the same thing and tell you he has no regrets about stepping aside in some areas.

In fact, he'd be the first to tell you that you can't rely on a founder to create a corporate culture on their own—they can implement and lead by example, but managers and senior-level team members medium are the only ones. who can help promote it on a wider level. Plus, we can't ignore that a highly involved founder also makes a difference workplace culture. Working for the type of founder who is permanently in “founder mode” can lead to feelings of micromanagement, which can have a tangible negative impact. Although on a positive and personal note, I have received great motivation and purpose from working closely with a founder for the past 12 years – there is no one like our CEO to drive the business forward.

However, when a founder empowers MPs to run and grow a business, they create an engaged workforce and a culture that thrives while the founder needs to focus on core goals. Think of it this way: When a commander entrusts his generals with the day-to-day work, they not only foster loyalty and sharpen the efficiency of their crew, but the commander can strategize for the bigger picture. Like ancient generals relying on captains to lead battalions, victory depends not only on vision but on strong leadership at every level.

And even then, scalability remains important. Not every business is meant to grow beyond founder mode in a different way. For example, if a business only sells smartphones, its growth potential is limited and the founder can retain complete control. The expertise required to run that type of business remains fairly stable. But if the business expands into other areas (apps, software, cars, TVs), it will need to bring in people with skills beyond the founder's expertise.

Similarly, developing as a leader does not mean that founders must completely retreat into the background and operate in anonymity. Getting the balance right is important – something that Elon Musk illustrates well. He maintains the aura of a founder while delegating day-to-day operations to executives overseeing each division. After all, Musk is still the visionary and overall leader of his companies.

The truth is that founders will always have a part of them in founder mode – it's one mentality shaped by years of war, victories, defeats and lessons. It's not something you can easily overcome; some even say it's something you're born with. However, founders need to evolve into fully functioning CEOs instead of stretching themselves too far, which ultimately benefits no one. While some make this transition naturally and others struggle, they must know when, what and how to delegate effectively for the greater good.



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