Move with the times
LOSING CONTROL: FOUNDER CEOS MAY BE FIRED IF THEY FAIL TO EVOLVE
Sometimes it’s not a bad idea to step away from the helm to let someone else drive the business forward.
It is no secret that one of the most difficult things for an entrepreneur to do is to step down as chief executive. Except for retirement or when done voluntarily, no founder CEO wants to be forcibly removed from the helm of the company they created and built.
Unfortunately, this is a reality playing out in boardrooms across the world.
The most famous founder CEO ousting must be of the late great Steve Jobs, who was voted out by the Apple board in 1985.
With the achievements he went on to accomplish in his illustrious career, it is unimaginable how or why they fired him.
But at that time, before he became the Steve Jobs whom we all greatly respect, he was a founder CEO who got on the bad side of the board that led to his eviction.
What lessons can we learn from Steve Jobs and the multitude of other founder CEOs who were fired from their own companies?
One of the greatest reasons founder CEOs are fired is because they fail to evolve as their company grows.
Being an entrepreneur and running a business in the free-spirited entrepreneur way is an exciting method, but there comes a time, at a specific stage of a businesses growth, that a corporate-like management style needs to be implemented.
A corporate-like management system entails introducing certain structures in the business, such as compliance models, governance, risk models, internal controls, internal audits, IT governance and so forth.
However, ask any entrepreneur and they will tell you of their dislike of such processes because they are perceived as boring, risk-averse and negate creativity.
Be that as it may, a corporate-like structure helps a business develop a foundation from which it can grow to become great.
Therefore, entrepreneurs must evolve as their businesses grow, otherwise, they risk being pushed out and replaced by a CEO who has the requisite skill to carry the business forward.
Another reason is that entrepreneurs fail to be team players.
It is all good and well when the business is small to make all the decisions without consulting anyone. But when a board is in place, decisions are made by the board. Which means it’s no longer my way or the highway.
But sometimes it’s not such a bad idea to step away from the helm to let someone else drive the business forward. This could allow the entrepreneur to focus on their core expertise.
It requires each entrepreneur to look at themselves and determine how best they can add value to the business, whether they are CEOs or not.
Munya Duvera is CEO at Duvera Elgroup