I just wrapped up an quite engaging book called Founder’s Mentality by Chris Zook and James Allen — it’s also an idea very heavily promoted by Bain Consulting.
The core concept? Founders who start a company, set out as insurgents obsessed with the frontline, with bias towards action and aversion to bureaucracy. After all, that is what drives many entrepreneurs in the first place — to challenge the status quo, and possibly, change the way things have always been done.
The problem? As companies scale, it’s common for some founders to remove themselves from the frontline. Instead, professionals are called in to lead organizational functions, adding complexity, which inhibits growth. Over time, the organization shifts from an aggressive, insurgent mentality, adding layers between the decision makers and the front line, ultimately, causing detachment from their customers they set out to serve.
Solution: If this is your story above, then the solution is to inculcate the Founder’s Mentality into employees — make them feel proud of their work and build a team of intrapreneurs who think of the business as their own. Above all, keep everything simple and bureaucracy free — 85% of barriers to profitable growth in a company are internal.
The book makes for a good read, does a great job of making the case for Founders Mentality. However, I think, it’s not that simple. In my opinion, before applying this prescription, you need to pass a few checkpoints. The authors dont spell these out in great detail, perhaps they leave it out as a secret recipe for their consulting.
However, it’s not that simple. Before applying this prescription, one needs to address a few checkpoints:
Checkpoint #1: Have you lost the Founders Mentality? No. Double-check.
At times, the problem is not with the organization, product, or the people. Sometimes, the founders have given up their “fight”. The founders themselves have lost the founder’s mentality. Let’s face it, not everyone has what it takes to build a billion dollar company. The once-insurgent gets trapped in a “lifestyle business” or falls in love with the chase, more than the catch. Or often, perhaps, the founder just doesn’t have what it takes — either experientially or temperamentally — to build a billion dollar business. If this is your case, stop now. As a founder, you need introspection, and the company doesn’t need a intervention — it’s you.
Checkpoint #2: Is the “idea guy” also the “growth hacker”?
The start-up founder is a insurgent hero in our business mythology, creating value out of thin air. However, scaling a business is a different ball game requiring operational excellence — the two may or may not be delivered by the same person. Not to confuse this argument with with ‘founder’ CEO versus ‘professional’ CEO success metrics. For every successful startup founder of the likes of Amazon or Facebook, there are a equal numbers of founders shown the door by PE guys.
Check #3: Are you recruiting people with the#FoundersMentality?
Part of the secret sauce of scaling up is getting your company culture, right. It seems obvious — who wouldn’t want an employee who values the business like his or her own? Who works with the same personal cost and customer obsession? So, are you actively hiring people who possess these traits? Do you value initiative? Do you reward these behaviors? Or, are you building a rule bound, policy trapped, bureaucracy laden culture that doesn’t have place for a team with the #FoundersMentality?
In making this argument, remember that not every employee wants to be a “business owner.” The expectations and realities of being an entrepreneur are taxing, even for those with a passion for business. Expecting employees without a vested interest to take on this type of responsibility is unrealistic at best and alienating at its worst.
Making everyone an insurgent can lead to an unending conflict and clash of egos. A traditional boss-subordinate relationship needs to be defined. It’s a lot of work… this #FoundersMentality. And as a founder, are you up for it?
Checkpoint #4: Define your tolerance for “Chutzpah”.
If you value intrapreneurs and you’ve hired people smarter than yourself… As a leader, do you provide room for dissent? Diversity, opinions, ideas, nonconformity, divergence — Are these to be managed? Or reveled? Plurality feeds innovation. Ideas don’t happen under a command culture.
It may seem counter intuitive to cite an example from the military culture here, however, armies are traditionally regarded as command oriented. An Indian captain or British sergeant could be admonished for speaking out of turn and court-martialed for questioning authority. Most armed forces cultures live by the principle of: authority first. Contrast this with an Israeli army on the other hand, survives on chutzpah.
Even a junior sepoy can question his general’s strategy — something not tolerated in most armies. “In battle, Israeli commanders do not stay at the back and shout orders — they are on the front lines with their soldiers.” The IDF is deliberately understaffed at senior levels, means more individual initiative at lower levels. On the other hand, the US Army has a increased, top heavy constitution, given their unique logistical and command challenges.
The culture of an organization emanates from the unique context it operates, therefore, this chutzpah may not work for your context, company culture and your personality. Be sure to be aware of your tolerance for it.
Checkpoint #5: The final mix for headiness.
Culture and growth hacking is highly dependent on its founder. In addition to people funding your start-up, leadership style, ability to handle divergence of opinions, products, markets, country, and the objective of the organization at large. Choose your own culture, preserve it, and serve it — neat or on the rocks. However, a cocktail mix does not necessarily translate into real success.
Founder’s Mentality is one path to sustainable growth, however, may or may not be your thing.
Anu
(This article appeared on LinkedIn on 14th March. This is an abridged version)
