“Suno sabki karo man ki” – Listen to everyone but act to your judgment

In large corporates, CEOs grow up through the ranks. They acquire skills over time and some level of filtering also makes sure they possess the right skills for the organization. However, in entrepreneurship, the founders suddenly become CEO’s, out of context. Until a month back, you could be an engineer or a college students and today, you may be a CEO – managing investors, employees, customers, so on and so forth.

I have observed several founder CEOs from different sides of the table in companies. As an entrepreneur, as angel investor, observer, independent Board member, key venture investor, mentor and so on. The founder CEO style has a significant impact on how the company is run. There are several ways once can slice and dice CEO’s leadership attributes – this one below I have seen to be important in companies with investors around the table. The conflict is in being participative – learn from others experiences, value their opinions, but also have the conviction to execute and drive the company forward.

Most entrepreneurs in India are first time entrepreneurs and investors tend to have more experience. There is also a power equation at work, since investors have invested capital and have legal Board / shareholder rights, which may include firing the CEO. However, most good investors I know firmly?want?the founders to be in charge. That’s the reason they invest in the company, not to run it. To be able to help a company succeed and in case the founder seems unsure, their inputs inadvertently become more and more pronounced. It’s not what they may have wanted!