Understanding Founder Mode: Leadership Beyond Management

Founder Mode

Two ways to run a company: founder mode and manager mode
- There are different approaches to company leadership, each with unique characteristics and outcomes.
Manager mode is well-known, taught in business schools
- Managerial techniques and strategies are widely recognized and ingrained in traditional business education.
Founder mode is less understood, but potentially more effective
- This mode requires more exploration and documentation to harness its full potential in company success.

Treats parts of the org chart as black boxes
- Leaders may distance themselves from daily operations, viewing departments and employees as separate components.
Avoids "micromanaging"
- Ensures trust in employees to execute tasks independently without constant supervision.
Often described as "hire good people and give them room to do their jobs"
- The focus is on recruitment of competent personnel and providing autonomy for productivity.
Can lead to hiring "professional fakers" who may damage the company
- There's a risk of recruiting individuals who excel superficially but lack genuine capability, potentially impacting organizational health.

Breaks the principle of CEO engaging only with direct reports
- Encourages broader interaction between the CEO and various levels of the company structure for better communication.
May involve "skip-level" meetings as the norm
- Regularly meetings happen directly with lower-level employees, bypassing intermediate managers to obtain unfiltered feedback.
Allows for more direct involvement across the organization
- Founders often play a hands-on role in company functions, fostering closer alignment with organizational goals.
Example: Steve Jobs' annual retreat with 100 most important people at Apple
- Conducting such gatherings underlines the importance of direct engagement with key personnel.

Founders often feel "gaslit" when told to run companies like managers
- Founders may feel misunderstood or pressured to conform to traditional management styles, which can be conflicting with their inherent approach.
VCs without founding experience may not understand how founders should run companies
- Investors lacking entrepreneurial backgrounds might struggle to appreciate the nuances of founder-led operations.
C-level executives can be skilled at "managing up"
- High-level executives may focus on impressing superiors rather than genuinely contributing to the company’s success.

Currently not well-documented or understood
- There is a need for more in-depth research and literature on the founder mode to aid better comprehension and application.
May vary from company to company and change over time
- Founder mode is not a one-size-fits-all strategy; it may need customization based on company needs and industry changes.
Could lead to better company performance
- Embracing founder mode judiciously might enhance organizational outcomes and innovation.
Some successful founders may already be practicing aspects of it
- Many thriving entrepreneurs may instinctively adopt founder mode traits without formal recognition or documentation.

Founder mode will become better understood and documented
- Continued exploration and scholarship will clarify founder mode principles, making them accessible and teachable.
It will be more complicated but more effective than manager mode
- Though intricate, founder mode promises superior efficacy in driving company growth and cohesion.
Some founders previously seen as eccentric may be vindicated
- Entrepreneurs with unconventional methods may gain validation as more insight into founder mode emerges.
The concept may be misused by those unable to delegate or non-founders trying to act like founders
- Non-entrepreneurial leaders or those lacking delegation skills might inadvertently create issues by misapplying founder mode principles.

Reference:

www.entrepreneur.com