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First client                                 Young girl                                 R©Ichak Adizes, Ph.D. 1971-2012
©Ichak Adizes, Ph.D. 1971-2012
Kongo Gumi     Construction/Osaka, Japan    Founded: 578 40th generation©Ichak Adizes, Ph.D. 1971-2012
Masakazu Kongo  Flexibility in selecting leaders  Health, responsibility, talent for the job.  Not always a son.  Sons-in-...
Hoshi Ryokan Innkeeping/Komatsu, Japan Founded: 718 46th generation Hotel for 450 people in 100 rooms. Zengoro Hoshi is th...
Fabbrica D ArmiPietro BerettaS.p.A.Firearms, 1526Brescia Italy         ©Ichak Adizes, Ph.D. 1971-2012
Kombinat im. Stepana   Razina - 1795                                                Kamenskaja                            ...
FLEXIBILITY                CONTROLLABILITYHIGHLOW      PRIME        DEVELOPING                 AGING          ©Ichak Adize...
©Ichak Adizes, Ph.D. 1971-2012
Go-go                     Founder Trap    growing aging        ©Ichak Adizes, Ph.D. 1971-2012
Go-go Phase ProblemsNormal Problems                                                   8 companies  See endless opportuniti...
Go-go Phase ProblemsAbnormal Problems  Arrogance  No responsibilities assigned  No reaction to change in direction  No dec...
Mergers and acquisitions                                  Stable                    Prime                              Ari...
Their solutions     "Where did IIdeal IS loser?"                  find this  "He is good, executive director          Idea...
What they say   I throw away to them, they cannot    even see not to mention to catch  They slowly adapt to sudden changes...
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, ...
StrategyStructureStyleStaffingPlans & GoalsRewards        ©Ichak Adizes, Ph.D. 1971-2012
StrategyFrom market share to profitabilityFocus on core capabilitiesIdentify what not to doState valuesOpportunity driven ...
StructureBuild accountabilityCreate borders between the founder and the  companyStructure around assignments and not  peop...
Short runShort run   Short run           Long run                  Short run    Short runSales       R&D                  ...
General manager    An organization shouldMarketing Finance HRD   Administration  PC Director R&D                          ...
StyleMutual trust and respect by exampleBuild a complimentary team of P&AAvoid the trap of “I am the Company”Differentiate...
StaffingPromote from withinBuild A’sIdentify a COOProfessionalize the processes of  management                            ...
Planning & GoalsMarket share with minimum levels of profitabilityDevelop policies, procedures, standards                  ...
RewardsFixed, variable                                              Go-go                                                 ...
XYZ                               Marketing                (Development)                               HRD                ...
PROFITMISSION   STRUCTURE TRACKINGREWARDS                    SYSTEM          ACCOUNTABILITY            ©Ichak Adizes, Ph.D...
Goal Can                 RewardGoal              Reward        Can                  RewardGoal Can   ©Ichak Adizes, Ph.D. ...
How not to getting old?               (P A E i)        (P A E i)   (P A E i)      ©Ichak Adizes, Ph.D. 1971-2012
E                                          E   AAA                                        EEE           Decentralization  ...
ORGANIZATIONAL FAMILY                President of the GroupInfancy   Aristocracy          Prime             Adolescence   ...
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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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