Businesses often lose their way once they’ve lost their founder. While an entrepreneur may have the original vision and mission, they can’t possibly be involved in every business decision forever. At some point, the business needs to function without them around. As such, it’s important that founders realize that company culture isn’t built on one person; it’s built by all employees working toward one common goal. For a great company you cannot have a single personality culture.
It is important for founders of startups to know when it’s time to step down from their role as CEOs and hands-on leaders. They often have an immense impact on building and establishing the business’s brand, culture, mission and vision during its earliest days. However, it becomes dangerous when they stay involved too long or resist handing over control once it’s time.
The death of Steve Jobs is incredibly upsetting, but not just because of his unique genius. One thing that I’ve noticed in technology companies that have had success is a cohesive team culture. It’s no secret that Apple had amazing cohesion: they’ve sold billions of dollars worth of products, making them one of our most successful corporations. What many people don’t know is exactly how much Steve Jobs contributed to creating their culture—and how it may eventually be their undoing. As an entrepreneur and engineer myself, I’m always intrigued by how other entrepreneurs create such cohesive cultures. So when I read Walter Isaacson’s biography of Steve Jobs (which was excellent), I was shocked to learn that he almost never talked about culture or vision with his employees—in fact, he didn’t even tell them what Apple stood for until years after its founding!
Elon Musk, one of world’s most famous entrepreneurs, is often lauded for his immense success—he’s built and sold multiple companies, won accolades like Entrepreneur of The Year and Visionary Awardee, and is known for SpaceX, Tesla Motors Inc., SolarCity Corp., and other endeavors. But it isn’t just because of Musk that Tesla or SpaceX have been so successful. Rather, it’s because he understands how important it is to build a company culture based on an open dialogue between leaders and employees. As an example, Musk has made sure that every employee at Tesla can speak directly with him about any issues they may be having at work; he even encourages them to email him personally if necessary.
The fastest growing, most innovative companies don’t have one charismatic leader but rather an array of skills and expertise, which together make for a more complete team. Research shows that in companies run by their founders, performance declines significantly after their founder leaves. The takeaway: Founders need to be cognizant of their unique contributions and recognize when it is time for them to step aside so others can step up. The company doesn’t need a new CEO or COO – it needs a whole new leadership model.
Find out Why Company Culture is More than a Buzzword
Here’s what Forbes says about Personalities that can Wreck your company culture.