"When the company fails, most people blame the CEO. I generally blame the board," said hedge fund investor Bill Ackman. He manages $18 billion, raking in an average of 31.2% annually.
His idea is simple—the owner bears the main responsibility. Period.
In a private company, it's the founders themselves. In a public corporation, the owners' interests are represented by the directors they hire.
Excuses like "We were misled," "The CEO ignored us," or "He turned out to be incompetent" diagnose the board, not the CEO.
Only the shipowner decides whether to hire a captain for risky trading venture or to take the helm himself.
To own something automatically means answering for it. It's like balancing the books in accounting: Assets = Liabilities.
The owner complaining about the CEO is as absurd as a rider blaming the horse, a beaver faulting the dam, or a chief accusing the tribe. "Eyes saw what they bought," says the Ukrainian proverb. Those are the rules of the grown-up game.
But what's said holds true in a broader sense. Each of us has the right, and thus the responsibility, for what we allow into our lives:
Ideas,
News,
Worries,
Temptations,
Impressions,
Agreements,
All sorts of people.
Who is to blame? The ruler of your kingdom. Is that you or not?
Sincerely yours,
-Alexander
About me:
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.
How can I help you?
If you've long been trying to understand what is limiting you and/or your business and how to finally give important changes a push, then The Catalyst Session is designed specifically for you. Book it here.