The Founders Mentality: Review
Every startup wants to grow and big a global corporation. Every global corporation wants to have the spirit of a start-up. Is it harder for a startup to grow or is it tougher for a large organization to be nimble? Both of them have their unique strengths. The giant enterprises have great brand awareness, a stable set of customers and presence across geographies and markets. They also find it easier to hire… maybe they find it easier to hire people who have a lower risk appetite. Who like things that are well defined with clear rules. Once hired these are the very people who will slow down what was once a nimble start up that was hungry and wanted to change the world. What slows down a once fast growing company?In the book The Founders Mentality two consultants from Bain have explored this question. Their answer: Growth creates complexity and that eventually slows down the corporation. It is inevitable. The large enterprise has to once again be a future maker. As the authors say in their blog:
“The leadership team needs to commit to being a future maker by embracing disruption and turbulence. We’ve written a lot about how the loss of that commitment can erode your long-term thinking and your approach to innovation. What’s clear is that you won’t achieve disruptive growth if your organization is preoccupied with defending against the next wave of insurgents by protecting existing profit pools and current ways of working. That will only force you behind the castle walls, setting you up for a long siege and abdication of any gains in new territories. Ask yourself: How much of our time is spent fighting the future, rather than putting our energy toward creating the future for our customers?”
Being able to take risks, the same kind of risks that the Founder took is needed to get a company back on a growth trajectory. Every employee’s imagination has to be ignited to think like a Founder. To regain growth, every employee needs to build a Founders Mentality. That means developing three kinds of behavior:
1. Inspiring Mission:
The company’s mission can be a source of inspiration. CavinKare, a consumer care company believes “Whatever the rich man enjoys, the poor man should be able to afford.” Not surprising they came up with the idea of selling shampoo in sachets. Let the company’s ambition fuel your dreams.
2. Detail orientation:
Connect with those who connect with the customer and get into the details of the business. I have heard stories of MS Oberoi (who founded Oberoi Hotels), who is known to be able to tell the temperature of a room. That too without looking at the thermostat and ask the staff to turn it up or down to keep in comfortable.
3. Decide as if it is your own money:
To develop a Founders Mentality, keep an eye on the costs and take quick action. Simple organizational structures enable nimbleness in decision making. Having a Founders Mentality may often mean obsessing about offering value to the customer.How can we redefine how customers value our products and services in a way that ensures we win with the most profitable customer segments? And how can we win with those customers at the bleeding edge—those that are signaling future behaviors, future needs and wants?The book believes that anyone can develop the behaviors and attitudes that make up the mindset of a founder. My favorite story in the book came from MS Oberoi. He says, “We create restaurant owners, not waiters.” Read the book. It is full of stories of what people with Founders Mentality do and then try it out.Can an employee develop the Founders Mentality? Love to know what you think. Leave your response below in the comments.----------Join me on Twitter @AbhijitBhaduriRead more about the Founders Mentality <click here>Another book that talks about a similar mentality <click here>