Part 2: Founder Mode vs. Manager Mode: Which is Better?

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This is a 2 part series. Find part 1 here .

The Leadership Nuance: Evolution or Revolution?

The transition from Founder Mode to Manager Mode is often seen as a leadership evolution.

However, for many founders, this transition can feel more like a revolution - a shift that goes against their nature. Founders are builders and risk-takers by design, and the idea of managing day-to-day operations may feel mundane. Yet, research suggests that evolving from a "visionary" to a "systems thinker" is a crucial leadership skill for long-term success.

But, is it always necessary? Some argue that founders should focus on what they do best - vision - and let others handle the managerial aspects. This viewpoint led to the rise of the "professional CEO" phenomenon, where founders bring in seasoned executives to manage operations while they focus on the company's direction. Companies like Google are an excellent case in point, where Larry Page and Sergey Brin transitioned leadership to Eric Schmidt, allowing them to focus on innovation.

Transition Strategies: Balancing Creativity and Efficiency

Navigating the transition between Founder Mode and Manager Mode isn’t always smooth. Many founders struggle with relinquishing control, feeling that the introduction of formal structures stifles creativity. A balanced strategy is essential, where the company's creative vision is preserved, but its operational rigor is enhanced.

One transition strategy is to integrate "managerial principles" into Founder Mode early on. Founders can adopt certain managerial practices - like tracking key metrics, ensuring accountability, and delegating tasks - without losing their innovative edge. This gradual transition prevents the organization from becoming too rigid, which often happens when a company moves too quickly into Manager Mode.

Another strategy is for founders to hire operational managers who understand the company’s vision deeply. Instead of handing the reins to corporate executives with no connection to the company’s founding ethos, founders should seek out managers who respect and nurture the company’s culture while introducing necessary structure.

Real-World Examples: Success and Failure in Transition

Several real-world examples demonstrate both the success and failure of navigating between these modes:

1. Amazon – Jeff Bezos: Bezos is a prime example of a founder who maintained a balance between Founder and Manager Mode. He remained a visionary even as Amazon scaled, ensuring the company never lost its innovative DNA. Bezos’ "Day 1" philosophy was about never losing the startup mentality, even when Amazon became a corporate giant.
2. WeWork – Adam Neumann: In contrast, Neumann’s leadership at WeWork shows the potential pitfalls of remaining in Founder Mode too long. His refusal to adapt and bring in managerial rigor led to a near-collapse of the company, despite early success.
3. Apple – Steve Jobs and Tim Cook: Apple provides an interesting case study. Steve Jobs was the quintessential founder who prioritized innovation above all else. When Tim Cook took over, he transitioned Apple into a more efficient, operationally sound company without abandoning its innovation-driven culture. Apple today thrives because of this balance between Founder Mode's creative essence and Manager Mode’s process excellence.

The Psychology Behind Founder and Manager Modes

From a psychological perspective, Founder Mode and Manager Mode tap into different cognitive processes. Founder Mode relies on divergent thinking - the ability to explore many possible solutions and generate novel ideas. It’s about seeing opportunities where others see barriers. Manager Mode, on the other hand, engages convergent thinking - focusing on streamlining processes, refining strategies, and improving efficiency.

The challenge for founders is to shift between these modes, which requires not only a change in behavior but also a shift in mindset. Many founders experience "Founder Burnout" when they try to force themselves into Manager Mode too soon. By acknowledging the psychological differences, founders can develop a leadership style that allows them to delegate operational duties while keeping their focus on innovation.

The Role of Company Culture

Another layer to this debate is company culture.

In Founder Mode, the culture is often fluid, dynamic, and centered around the founder's vision. As the company grows, culture tends to shift towards formal processes and policies, which can dampen the creative spirit.

But does it have to? Companies that manage to retain a "startup culture" while scaling, such as Google and Netflix, show that it is possible to maintain creativity alongside operational excellence.

To keep innovation alive, companies should foster a "dual operating system" where a portion of the company operates with the flexibility and autonomy of a startup (Founder Mode), while the rest focuses on ensuring scalable operations (Manager Mode). This hybrid approach helps preserve agility without sacrificing efficiency.

Redefining Success

The debate between Founder Mode and Manager Mode may often be framed in terms of "either/or," but in reality, the most successful companies are those that embrace "both/and." Leadership today requires a dynamic balance of both modes, with leaders who are comfortable wearing different hats as their companies evolve.

An unconventional perspective? The ultimate answer might not be which mode is better, but rather how well founders and leaders can pivot between the two based on the needs of their company at any given moment. The future of leadership lies in flexibility - the ability to blend the visionary drive of Founder Mode with the operational precision of Manager Mode.

By encouraging fluidity and the ability to oscillate between these modes, companies can innovate and scale simultaneously, creating organizations that thrive in both the early stages and the long haul.

This might just be the new standard for long-term success.

Thank you for reading! I'd love to know your thoughts in the comments below. For more insights from my experiences as an executive and an entrepreneur in how we can harness the power of community to change our world, and to find success and fulfillment, be sure to subscribe to Plan B Success Newsletter .

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