How to get out of Founder's trap
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Presentation at XXXIV Adizes Convention in June 2012 in Sankt Peterburg
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How to get out of Founder's trap
- 1. First client Young girl R ©Ichak Adizes, Ph.D. 1971-2012
- 2. ©Ichak Adizes, Ph.D. 1971-2012
- 3. Kongo Gumi Construction/Osaka, Japan Founded: 578 40th generation ©Ichak Adizes, Ph.D. 1971-2012
- 4. Masakazu Kongo Flexibility in selecting leaders Health, responsibility, talent for the job. Not always a son. Sons-in-law taking the family name 2007 ©Ichak Adizes, Ph.D. 1971-2012
- 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. Fabbrica D' Armi Pietro Beretta S.p.A. Firearms, 1526 Brescia Italy ©Ichak Adizes, Ph.D. 1971-2012
- 7. Kombinat im. Stepana Razina - 1795 Kamenskaja Paper-Board Mill - 1799 ©Ichak Adizes, Ph.D. 1971-2012
- 8. FLEXIBILITY CONTROLLABILITY HIGH LOW PRIME DEVELOPING AGING ©Ichak Adizes, Ph.D. 1971-2012
- 9. ©Ichak Adizes, Ph.D. 1971-2012
- 10. Go-go Founder Trap growing aging ©Ichak Adizes, Ph.D. 1971-2012
- 11. Go-go Phase Problems Normal Problems 8 companies See endless opportunities A messy organization chart. Organized around people, not functions. Flexible direction Centralized leadership delegating tasks but not responsibility Lots of drive Too many priorities Equate more sales with success ©Ichak Adizes, Ph.D. 1971-2012
- 12. Go-go Phase Problems Abnormal Problems Arrogance No responsibilities assigned No reaction to change in direction No decision-making outside the leader or core group Decisions are reversed by the leader ©Ichak Adizes, Ph.D. 1971-2012
- 13. Mergers and acquisitions Stable Prime Aristocracy Adolescence Early Bureaucracy Go-go Infancy Bureaucracy Courtship Death growing aging ©Ichak Adizes, Ph.D. 1971-2012
- 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. 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. 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. Strategy Structure Style Staffing Plans & Goals Rewards ©Ichak Adizes, Ph.D. 1971-2012
- 18. Strategy From market share to profitability Focus on core capabilities Identify what not to do State values Opportunity driven Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
- 19. Structure Build accountability Create borders between the founder and the company Structure around assignments and not people Teach to play positions Go-go Build a Board with outsiders Founder’s Trap Avoid small companies Build profit centers ©Ichak Adizes, Ph.D. 1971-2012
- 20. Short run Short run Short run Long run Short run Short run Sales R&D Strategic Finance Personal Marketing Production planning Accounting HRD ©Ichak Adizes, Ph.D. 1971-2012
- 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. Style Mutual trust and respect by example Build a complimentary team of P&A Avoid the trap of “I am the Company” Differentiate between personal and corporation Delegation without abdication Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
- 23. Staffing Promote from within Build A’s Identify a COO Professionalize the processes of management Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
- 24. Planning & Goals Market share with minimum levels of profitability Develop policies, procedures, standards Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
- 25. Rewards Fixed, variable Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
- 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. PROFIT MISSION STRUCTURE TRACKINGREWARDS SYSTEM ACCOUNTABILITY ©Ichak Adizes, Ph.D. 1971-2012
- 28. Goal Can Reward Goal Reward Can Reward Goal Can ©Ichak Adizes, Ph.D. 1971-2012
- 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. E E AAA EEE Decentralization AAAAA AAAAA AAAAAAA AAAAAAA PPPPPPPPP PPPPPPPPPP ©Ichak Adizes, Ph.D. 1971-2012
- 31. ORGANIZATIONAL FAMILY President of the Group Infancy Aristocracy Prime Adolescence Go-go Uniformity will lead to Bureaucracy ©Ichak Adizes, Ph.D. 1971-2012