Who drives the company's mission once the founders leave?
The mission is not an empty vehicle. The mission is a purposeful statement, a ‘strong goal’ filled with value.
The founders of the business create the initial mission. They create their mission based on passion, beliefs, values, and purpose. The mission is not an empty vehicle. The mission is a purposeful statement, a ‘strong goal’ filled with value.
The mission drives the company forward, creating success or failure. Not all businesses succeed. However, when they do, the founders and the original mission drive the company forward through the inevitable difficulties of creating a business.
Often, when the founders leave the company, the company starts to stagnate or, in some instances, falter. Why would this happen when the mission statement is still in place?
I believe the issue driving the stagnation is one of agency versus true purpose. Although the mission is intact, the company is managed by individuals for whom the mission is not personal. The driving force behind their decisions could be ego, personal gain, fame, fortune, or, again, just ego.
The original mission statement has become an empty vehicle.
For this reason, founders are often brought back to the business to ‘get things back on track’.
We Can Note:
Steve Jobs (Apple) - Steve Jobs returned to Apple in 1997 after being ousted in 1985. His return revitalized the company, leading to the development of iconic products like the iMac, iPod, iPhone, and iPad.
Howard Schultz (Starbucks) - Howard Schultz stepped down as CEO of Starbucks in 2000 but returned in 2008 to help the company navigate financial challenges. He led a successful turnaround, focusing on quality and customer experience.
Michael Dell (Dell Technologies) - Michael Dell returned as CEO of Dell Technologies in 2007, privatizing the company in 2013 to regain control. His return helped Dell refocus on innovation and customer solutions.
Larry Page (Google) - Larry Page returned as CEO of Google in 2011 after stepping down in 2001. He streamlined operations and fostered a culture of innovation, leading to significant growth and the creation of Alphabet Inc.
Jerry Yang (Yahoo) - Jerry Yang returned as CEO of Yahoo in 2007 to help steer the company during a period of strategic uncertainty. Although his tenure faced challenges, his return was aimed at revitalizing the company’s direction.
Returning to the issue of agency versus purpose, I believe the key problem is that we now refer to the company as having a mission.
We somehow ignore that a company is a legal vehicle created to further the mission. The company was created to leverage money, talent, and other resources but did not have a mission. It was bought off a shelf.
And therein lies the issue. The mission is part of the founder, and the founder is part of the mission. The drive to achieve will always be stronger when these two proponents are present.
The CEO drives the company's mission, but they also focus on their vision, ideals, and fame. Sometimes, this works in favour of the company, and sometimes, it takes the company so far off-track that it needs to be brought back to its original path.
All coins have two sides, and the other side of this coin is the founders who drive their mission so strongly that they start to put the vehicle, the company created to achieve their mission, at risk.
Guardrails then need to be brought in, usually in the form of a strong CEO who can guide the founders in their mission and ensure the company's survival.
However, I believe the mission that drives the company is deeply personal, and without that force present, that person or people present, the drive will not be as strong.
Ensuring Mission Continuity
Leadership Development
Leadership development is crucial. Companies should identify and nurture leaders who embody the mission. These leaders must understand the founders’ vision and have the same dedication.
Mentorship programs can help transfer the founders' knowledge and values to new leaders. By investing in leadership development, companies can ensure that the mission remains in capable hands.
Cultural Integration
Cultural integration plays a vital role. The mission should be embedded in the company’s culture. This means that every employee, from top management to entry-level staff, understands and lives the mission.
Regular training sessions, workshops, and internal communications can reinforce the mission. Celebrating achievements that align with the mission can also strengthen the culture.
Continuous Alignment
Continuous alignment ensures that the company stays on track. Regular reviews and assessments can help leaders evaluate how well the company adheres to its mission.
Feedback loops from employees, customers, and other stakeholders provide valuable insights. Leaders should remain vigilant and proactive in addressing any deviations from the mission.
Conclusion
The mission is deeply personal to the founders. Their departure can create challenges, but it also presents an opportunity for growth and resilience. Companies can overcome these challenges by developing strong leaders, integrating the mission into the culture, and ensuring continuous alignment.
The mission, part of the founder and the founder part of the mission, can endure and thrive, driving the company to long-term success.