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Founder mode is the latest trend making a sensation in the business world. Although some agreed, others say it is merely a buzzword to justify toxic leadership behavior. In summary, Y Combinator co-founder Paul Graham wrote: essay advocating “founder mode,” which involves the founder-CEO being involved in all elements of the company. The opposite approach, the managerial mode, emphasizes delegation to the executive team and middle managers.
While Graham acknowledged that founder mode has no clear definition, he defined it in contrast to managerial mode, which inevitably results in disastrous results.
“You tell your direct reports what to do, and they decide how to do it. But you don’t go into detail about what they do. That would be micromanaging them, which is wrong.”
Tests suggests that founder-led firms perform higher than firms led by skilled managers. In my opinion, this success is not about the CEO being involved in every decision and touching every project, but moderately about strategically micromanaging certain elements of the business.
Assistance in every employment decision
Speaking on Silly podcastMark Cuban shared one of his best pieces of recommendation for aspiring entrepreneurs: hire slowly. The serial entrepreneur explained that early in his profession he hired quickly, considering he could make it even if the person wasn’t a perfect fit. But this approach was improper.
“AND [made] many hiring mistakes that cost me money,” Cuban said.
As I’ve learned over nearly two decades as a founder and CEO, every newbie counts. Hiring is one area of business that I never fully delegate because it can make or break a company. Without complete trust in our employees, I would not be able to delegate. If I couldn’t delegate the execution of countless daily decisions, I couldn’t do my job as founder, a role that I consider broader and loftier than the title of CEO. Being a founder requires a growth mindset. It requires constant learning, discovery and reflection on how to chart the future path of your company. Hiring carefully gives me the time and peace of mind to devote myself to this role. This doesn’t mean hiring good people and getting out of their way. I’m very curious about what’s happening in every aspect of our business. But I wouldn’t be able to do my job if I had to sign off on every decision.
Overseeing recruitment allows me to maintain accountability as a leader. This reminds me of something about the late Anthony Bourdain once saidtalking about his time as chef of Les Halles restaurant:
“[I]If something goes wrong, whether I’m in the kitchen or not, I will never, ever blame anyone else. I delegated the task to them. If they messed up, it’s my fault. I repay you with absolute loyalty.”
Micromanaging culture
Based on them testsHarvard Business Review contributors concluded that companies that maintain a “founder’s mentality” over time are four to five times more likely to perform at their best. A founder’s mentality is the attitudes and practices that have been in place from the beginning – for example, a business goal. In my experience, micromanaging company culture is the only way to maintain a founder’s mentality.
You may be wondering: How can a founder closely guide the shaping of corporate culture? First, say it very, very clearly. Communicate in public forums, such as company newsletters or all-employee meetings, about expectations for employees on topics such as attitudes and behaviors in the work environment and the company’s core values and broader purpose. For example, a founder might use a weekly newsletter to highlight an employee’s recent achievements that exemplify how the company is delivering on its promises to customers. At our company, I strive to promote a culture of innovation and strategic risk-taking, and remind employees how this serves our ultimate goal of making users’ lives easier. That’s why I encourage employees to experiment and share my own exploits as I explore new ideas – even if it doesn’t turn out as I expected.
This brings me to another key aspect of shaping company culture – leaders must model the behaviors and attitudes they hope to see. How Harvard Business Review notes, culture is learned behavior, not a byproduct of surgery or an overlay. For example, you possibly can’t expect employees to totally return to the office, claiming it encourages more progressive considering, but they will not show up. Leaders have to be prepared to walk the walk.
Obsessed with vision
If the goal is what your organization does, your vision is about where it goes. How Complete equalization authors Riaz Khadem and Linda Khadem explain that the value of a vision lies in its clarity and ability to motivate employees. Leaders must distill the company’s long-term goals into a concise statement that clearly defines where they are going and inspires everyone to work toward achieving that goal.
Founders have an inherent advantage when it involves being obsessed with their company’s vision. Having rigorously articulated the company’s original vision, the founders invest in its future in a unique way. The parent analogy is apt. Just as I intuitively understand each of my three children, I understand the ins and outs of my company like no one else, because I have been there and taken care of it from day one. My company’s success is closely linked to my very own.
At Jotform, shaping our vision requires focusing on the most pressing demands of tomorrow. For me, this means progress in the areas of artificial intelligence and enterprise development while my executive team handles day-to-day operations.
My approach to founder mode is to design our team and culture to position our company for continued success. Your approach will depend on your organization and its unique challenges. But at its core, founder mode is about engaging deeply with what really matters.