The Evolving Captain: Why Startup Founders Don't Always Stay CEO
The startup world celebrates iconic founder-CEOs like Mark Zuckerberg or Jeff Bezos. But what happens when a scrappy startup becomes a global giant? Surprisingly, many founders choose to step down from the CEO role. Here's why:
Shifting skills: The skills needed to navigate the fast-paced, uncertain world of a startup are different from those required to lead a large, established company. Founders who excel at innovation and risk-taking might not be the best fit for managing complex corporate structures.
Focus and expertise: As a company scales, it faces new challenges that require specialized expertise. Bringing in a CEO with proven experience in managing large organizations can ensure the company stays on track for long-term success. The founder can then focus on areas where their unique vision and passion are most valuable.
Making room for growth: Stepping down as CEO can pave the way for talented executives within the company to take the reins. This fosters a culture of growth and leadership development within the organization.
The entrepreneurial itch: Some founders simply have the entrepreneurial spirit in their DNA. Stepping down allows them to pursue new ventures and challenges, bringing their experience to fresh ideas.
It's not failure, it's evolution: Stepping down doesn't diminish a founder's legacy. They can remain on the board, act as a mentor, or become an inspirational figure for future generations of entrepreneurs.
Founders stepping down from CEO positions is a natural part of the growth process for many companies. It allows them to leverage their strengths while ensuring the long-term success of the company they built.
Here are some examples:
• Jack Dorsey (Twitter): Stepped down as CEO in 2021 to focus on his other company, Block.
• Steve Jobs (Apple): Resigned as CEO in 1985 due to internal conflict, but returned in 1997 to lead Apple's successful comeback.
The key takeaway? Leadership styles evolve as companies grow. Founders who recognize their strengths and make strategic decisions about the CEO role ultimately contribute to the ongoing success of their ventures.
Director, Risk Management Association - Rocky Mountain Chapter Ancora imparo “Quintessential tailored banking”™ 💲💲 Strategic Bank Selector | Matching Credit Needs with the Right Lender | Not a loan broker
1yFounders are important, but an experienced CEO is invaluable to the success of any enterprise.
Creator of GF-ACCORD Tech version1 in 2010 (AI for Finance) | & the Honey Badger Management Framework for the AI era in 2023 | Former CEO of SME | Board Member | Sustainable Finance Expert | Leadership, Valuations, PE
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1yDear Marie, It has been some time since we met at our office in Rotterdam. I like your article as this is exactly where we come in to support those start-up organizations. You're most welcome at our office to further talk about this topic. All the best and hope to see you soon. Cheers - Paul p.huiskens@n2growth.com www.N2Growth.com
Consultant Innovatie & Technologie - Of ik vind een weg, of ik maak er een.
1yBlij dat ik weer een post van je lees Marie. Ik wilde je van de week een e-mail sturen maar ik kon gewoonweg niet meer op jouw naam komen (neveneffect van de medicatie die ik gebruik). Dat gezegd hebbende, ik ben van mening dat founders geen CEO moeten zijn en dat investeerders, in overleg met de founder(s) een managementteam moeten aanstellen naast de investering. Ik ben een geweldige founder, ik inspireer, ik innoveer en ik leid. Maar ik ben serieus de meest waardeloze directeur die je ooit zal meemaken. Echter koppel je mij aan een goede CEO/CFO en COO en ik verover de wereld. Maar laat je mij de boel runnen, en dan vooral de dagelijkse operaties, dan val ik nog harder op mijn gezicht dan mijn mislukte en amusante poging een beroemd artieste mee uit te vragen.