How to get out of Founder's trap

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Presentation at XXXIV Adizes Convention in June 2012 in Sankt Peterburg

Published in: Business, Career

How to get out of Founder's trap

  1. 1. First client Young girl R©Ichak Adizes, Ph.D. 1971-2012
  2. 2. ©Ichak Adizes, Ph.D. 1971-2012
  3. 3. Kongo Gumi Construction/Osaka, Japan Founded: 578 40th generation©Ichak Adizes, Ph.D. 1971-2012
  4. 4. Masakazu Kongo Flexibility in selecting leaders Health, responsibility, talent for the job. Not always a son. Sons-in-law taking the family name2007 ©Ichak Adizes, Ph.D. 1971-2012
  5. 5. Hoshi Ryokan Innkeeping/Komatsu, Japan Founded: 718 46th generation Hotel for 450 people in 100 rooms. Zengoro Hoshi is the current patriarch. ©Ichak Adizes, Ph.D. 1971-2012
  6. 6. Fabbrica D ArmiPietro BerettaS.p.A.Firearms, 1526Brescia Italy ©Ichak Adizes, Ph.D. 1971-2012
  7. 7. Kombinat im. Stepana Razina - 1795 Kamenskaja Paper-Board Mill - 1799 ©Ichak Adizes, Ph.D. 1971-2012
  8. 8. FLEXIBILITY CONTROLLABILITYHIGHLOW PRIME DEVELOPING AGING ©Ichak Adizes, Ph.D. 1971-2012
  9. 9. ©Ichak Adizes, Ph.D. 1971-2012
  10. 10. Go-go Founder Trap growing aging ©Ichak Adizes, Ph.D. 1971-2012
  11. 11. Go-go Phase ProblemsNormal Problems 8 companies See endless opportunities A messy organization chart. Organized aroundpeople, not functions. Flexible direction Centralized leadership delegating tasks but notresponsibility Lots of drive Too many priorities Equate more sales with success ©Ichak Adizes, Ph.D. 1971-2012
  12. 12. Go-go Phase ProblemsAbnormal Problems Arrogance No responsibilities assigned No reaction to change in direction No decision-making outside the leader or coregroup Decisions are reversed by the leader ©Ichak Adizes, Ph.D. 1971-2012
  13. 13. Mergers and acquisitions Stable Prime Aristocracy Adolescence Early Bureaucracy Go-go Infancy BureaucracyCourtship Death growing aging ©Ichak Adizes, Ph.D. 1971-2012
  14. 14. Their solutions "Where did IIdeal IS loser?" find this "He is good, executive director Ideal but for a son-in-law." “Everyone wants to be Cary fishing, "He is good, but to take him Grant. Evena want to be Cary Grant” to put I worm on a fishing hook." Cary Grant. ©Ichak Adizes, Ph.D. 1971-2012
  15. 15. What they say I throw away to them, they cannot even see not to mention to catch They slowly adapt to sudden changes of organizational structure When I wake up at 2am I do not have anybody to call ©Ichak Adizes, Ph.D. 1971-2012
  16. 16. What they get I do not talk on profit but to stay normal, otherwise I do not nee profit This is not just your toy, 1000 families depend on it and earn their living in it ©Ichak Adizes, Ph.D. 1971-2012
  17. 17. StrategyStructureStyleStaffingPlans & GoalsRewards ©Ichak Adizes, Ph.D. 1971-2012
  18. 18. StrategyFrom market share to profitabilityFocus on core capabilitiesIdentify what not to doState valuesOpportunity driven Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  19. 19. StructureBuild accountabilityCreate borders between the founder and the companyStructure around assignments and not peopleTeach to play positions Go-goBuild a Board with outsiders Founder’s TrapAvoid small companiesBuild profit centers ©Ichak Adizes, Ph.D. 1971-2012
  20. 20. Short runShort run Short run Long run Short run Short runSales R&D Strategic Finance PersonalMarketing Production planning Accounting HRD ©Ichak Adizes, Ph.D. 1971-2012
  21. 21. General manager An organization shouldMarketing Finance HRD Administration PC Director R&D be structured Long run by a genius, so that any idiot can run it.Accounting Personal Sales Production Rather then strcutred by an idiot – Short run Short run so just a genius can run it. ©Ichak Adizes, Ph.D. 1971-2012
  22. 22. StyleMutual trust and respect by exampleBuild a complimentary team of P&AAvoid the trap of “I am the Company”Differentiate between personal and corporationDelegation without abdication Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  23. 23. StaffingPromote from withinBuild A’sIdentify a COOProfessionalize the processes of management Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  24. 24. Planning & GoalsMarket share with minimum levels of profitabilityDevelop policies, procedures, standards Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  25. 25. RewardsFixed, variable Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  26. 26. XYZ Marketing (Development) HRD Finance Projects Servis &Purchasing Objects Trade mainteinance Support Warehouse Objects 1 (Sales) (Sales) (Sales) Accounting Objects 2 (Inventory) (Inventory) (Inventory) IT Transport Preparation Quality Obects 3 assurance Projecting (Montage) Administration Sales (Inventory) Workshop 1 Workshop 2 (Planing) ©Ichak Adizes, Ph.D. 1971-2012
  27. 27. PROFITMISSION STRUCTURE TRACKINGREWARDS SYSTEM ACCOUNTABILITY ©Ichak Adizes, Ph.D. 1971-2012
  28. 28. Goal Can RewardGoal Reward Can RewardGoal Can ©Ichak Adizes, Ph.D. 1971-2012
  29. 29. How not to getting old? (P A E i) (P A E i) (P A E i) ©Ichak Adizes, Ph.D. 1971-2012
  30. 30. E E AAA EEE Decentralization AAAAA AAAAA AAAAAAA AAAAAAAPPPPPPPPP PPPPPPPPPP ©Ichak Adizes, Ph.D. 1971-2012
  31. 31. ORGANIZATIONAL FAMILY President of the GroupInfancy Aristocracy Prime Adolescence Go-go Uniformity will lead to Bureaucracy ©Ichak Adizes, Ph.D. 1971-2012
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