Fairy Tale of the CEO / by Alexander Lyadov

 

There is a joke that founders often "devour" their first three CEOs.

This happens when, at some point, founders dream of hiring a CEO who will run their business. They utter wearily: "It's hardly possible, but I really wish for it." Three iterations for the educational process are not that many, right?

The thing is that some founders never manage to relinquish power to a CEO. Why? Recall the 19th-century German fairy tale of Snow White.

The witch deceived the girl thrice with wondrous gifts: a suffocating corset, a poisoned comb, and a venomous apple. The dwarfs warned her of the danger and saved her twice. However, naive Snow White couldn't resist the temptation.

Similarly, entrepreneurs cherish the dream of a magical CEO. Supposedly, the new CEO will instantly solve all chronic business problems. And the founder will be spending regular dividends while living in the Maldives.

Of course, when confronted with reality, illusions crumble to dust. In the worst case, control will be lost; in the best, it'll be a false start.

The root of evil lies in the confused roles of an entrepreneur and a CEO. A competent CEO can grow a business created by someone else. However, founders cannot delegate their function, that is to make 1 out of 0.

First, founders themselves must solve core problems in their business. Only then can they hand over the helm to the CEO, setting the course to sail.

Yours sincerely,

-Alexander


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