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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
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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
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