When startups fail, it’s usually due to decisions related to hiring and compensation. It starts with the first major decision: forming the founding team by “hiring” one or more founders. As you know, founders may be good or great hires because they are true entrepreneurs with leadership capabilities. On the other hand, they may turn out to be “bad hires” for many reasons.
Another related topic is dealing with team members that were net positive at one stage, but don’t grow or evolve with the needs of the company and then become a net negative. A classic example is the BD leader that can’t figure out how to build a sales organization. But of course these sorts of patterns can happen in every part of the company. This also holds true for founders, which is always super awkward, but sometimes critically necessary.
Another related topic is dealing with team members that were net positive at one stage, but don’t grow or evolve with the needs of the company and then become a net negative. A classic example is the BD leader that can’t figure out how to build a sales organization. But of course these sorts of patterns can happen in every part of the company. This also holds true for founders, which is always super awkward, but sometimes critically necessary.
Right-on Bob. Thanks for the comments. They are welcome anytime, any blog.