Article

Inspiring Your Team in Good Times and Bad

January 2, 2024
A man in a suit and tie is standing in front of a group of people sitting around a table.

Inspiring and Motivating People: The #1 Correlate of Outstanding Leadership

Inspiring Your Team in Good Times and Bad


Good things happen when people are motivated and inspired. Creative juices flow, ideas proliferate, people work harder, productivity rises, and results improve. When this motivation is sparked by the leader, the organization or the country can thrive and survive the toughest of times.


In more than 40 years of coaching and studying effective and ineffective leaders as well as starting numerous entrepreneurial companies myself, one factor has stood out above all others. In large established corporations, growing start-ups and organizations in every industry around the world, what makes a leader most effective is  the ability to inspire people. This means giving them vision and mission, and motivating them through the leader’s own optimism, energy, confidence, enthusiasm, determination, and commitment. This is even more important in the challenging times we live in today.


 In my research on over 1800 leaders, utilizing 360 ratings and personality measures, being an inspirational leader was the #1 correlate of leadership effectiveness . This was measured by an average of 12 raters being asked to rate the leader on “Overall Leadership Effectiveness,” after they had completed ratings on 47 dimensions of leadership and management, social skills, problem-solving, character and decision making. When I dug deep into the data, it clearly showed that leaders who can light a fire under people, had unique characteristics that helped them serve as an inspiration to others. They excelled at building trust, showing confidence in the organization's ability to achieve its goals, instilled hope and motivated and energized people to persevere. 


Why is the ability to inspire people so important?

Sure, people are motivated by making money and achieving financial security. Money is important, but not the only or even the most important motivator of employees. As many have said before, a compelling vision, dedication to a meaningful mission gets people mobilized. But, a leader’s optimism and enthusiasm, integrity, resilience, supportiveness and self-assurance are also critical in inspiring people to follow. It has been said that paychecks can’t buy passion. Engaged and motivated employees are far more likely to excel and to exceed performance targets. They have genuinely bought into the cause. 


The ability to motivate people plays a vital role at every stage of company growth. Leaders of early stage as well as established organizations are constantly called upon to motivate people during many of the organization’s everyday challenges and problems. This is even more important in the kind of difficult times an organization will inevitably encounter, when obstacles seem to be piling up and people are becoming stressed or demoralized. 


Your ability to lead will be tested when your team members are feeling discouraged about their own performance challenges, by organizational setbacks or economic downturns, by conflicts with coworkers, company politics and their own personal life problems. At this point in time, the coronavirus pandemic threatens the lives and the livelihood of all of us. This requires inspirational leadership. 


If you are a leader, you can  inspire by the words you speak, the vision you convey, the encouragement and support you offer, but most of all by your example. People are always watching the leader. It is well known that we humans learn best by emulating an example. The leader’s commitment, focus, follow-through and values are always on display, and set the tone for others. 


A deeper dive into what helps leaders inspire and motivate people


They are vision and mission driven 

Leaders can inspire people when they paint a clear vision of what they want to accomplish and can skillfully and persuasively communicate this vision. But the vision must be followed with a credible plan. Ideas and big dreams are not enough. Many leaders feel destined to do something significant, even something great with their lives. The most effective leaders turn their dreams into a realistic and actionable strategic plan. 


 “He sold me on the long-term vision when he interviewed me for the job. I joined the company because he told a compelling story and I wanted to be part of it.” 

 

  • Ask yourself, have you formulated a clear and compelling vision for yourself and your organization? 
  • Have you shared that vision enough times and with enough clarity that others truly get it? 
  • Have you turned this vision from a picture in your own head into a plan that people can understand and believe in?

 

They see the big picture and communicate its meaning to others 

In order to create a vision and a solid strategy, a leader must be able to understand the broad context: market trends, technology trends, economic patterns, the competitive landscape etc. and then be able to see the subtle connections, relationships, and implications of internal and external events. When the leader sees things that others don’t recognize, their insights can create products and potential markets that others just don’t see. This helps their decisions and the organization’s actions to have greater impact. 


It’s easy to let the tyranny of the urgent and the need to accomplish an endless stream of daily tasks cause you to lose perspective on the broader significance of what you do. Excessive urgency can cause a leader to make a series of reactive decisions without consideration of the larger mission and long-term priorities.   


 “His forward-thinking view is amazing,” one person said of her boss. “This has helped the team stay focused on delivering on today’s challenges while keeping in mind where we are going over the long-term.” 


But, seeing around corners and having a vision in your head isn’t enough. People tend to follow leaders who have clearly communicated where the organization is headed. Turning vision into strategy allows people to link their actions with the organization’s broader objectives. Teams need to be aligned around a “North Star” and avoid getting distracted by unimportant details. Through emails and texts, slack channels, all-hands meetings, videoconference and frequent updates, inspirational leaders continuously share their vision with followers. These things help employees see why their actions are important and where their job fits in the larger plan. 


“He is able to paint a clear picture and turn it into a clear road map. Hearing his vision for the company and for our group gives us a sense of confidence and excitement for what’s to come.”


“Her clear picture of the future and ability to link our current work to the long-term strategy helps us understand our roles and feel connected to the vision.”

 

They are genuinely optimistic, cheerful, and enthusiastic   

The most effective leaders uplift the people around them with their upbeat demeanor and a consistently hopeful, optimistic outlook. They have a positive view of the world and genuinely tend to see the good and the potential in others. They don’t dwell on negative events and people’s shortcomings. However, their optimism is grounded and realistic, not naïve. And it’s not contrived. They don’t speak in feel-good platitudes. Their positive attitude brings out the best in others. 


“She is optimistic, cheerful, and enthusiastic. Her positive energy and confidence in our ultimate success inspires team members to push themselves.” 


“He never, ever transmits negative energy to the team, even in the most difficult situations. He has been genuinely optimistic during some really tough times.”


They communicate hope in tough times   

Part of the job of any leader is to be Chief Inspirational Officer, on a daily basis. It is easy to be cheerful when things are flowing smoothly but life is not always like that. All organizations (as all of us as individuals) have down times when the going is rough, obstacles seem bigger, and it is hard to maintain motivation and focus. Leaders who are inspirational motivate people with their positive attitude and can-do spirit. Employees recognize and appreciate this: 


“His optimism, positive outlook and sense of humor helped to keep everything in perspective during tough times."


“Without her positive attitude, the bleakest days would have been too much to take.”


They love their work, and this is infectious 

Inspiring leaders consistently have extremely high levels of job satisfaction. They truly love their jobs. But more than that: they seem to enjoy their lives, and their work is simply a part of that. They have a passion for their mission and for the daily steps taken toward achieving it. This attitude is contagious and inspires others. 


“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.” - Steve Jobs 


 They are models of commitment and value s  

When it comes to organizational values, the leader sets the tone. Everyone is always watching. Everything the leaders does makes a speech about what they really value, how they really feel, what frustrates them or who and what gets their time and attention. Leaders must consistently adhere to their own and the organization’s values. Leaders must also show commitment to the organization and its greater good rather than only their self-interest. 


Inspiring leaders also model honesty and integrity and this motivates the people around them. Their behavior is guided by principles and an understanding of the implications and ramifications of their decisions and actions. They act authentically, responsibly and in alignment with their values and the mission and values of the organization. They have a strong inner compass, otherwise known as conscience. They walk their talk. They follow through on their commitments. They insist upon fairness, honesty, and integrity. 


“He practices all the core values of the organization every day and exhibits the highest standards of personal conduct. He is a perfect role model for any team member to follow.”


Motivating leaders set the standard of commitment for everyone in the organization. They work hard, putting in all the hours needed to do the job as effectively as they can. They show up on time and “own” every aspect of the work. They always do their best, and that commitment inspires others to perform at their best. They don’t avoid difficult or challenging situations, but they keep striving to be successful.


“It definitely makes me feel better when I see her determination, energy, and confidence, particularly when things start to fall apart.”


They show remarkable resilience and level-headedness

Effective leaders also inspire their followers with their calm, steady and consistent style, showing them that they have a firm hand on the wheel, which is reassuring during tough or stressful times. Their composure in times of crisis helps their team remain calm. They recover quickly from setbacks. They keep the big picture in mind and don’t let the small unimportant things upset them. They also take the time to reflect and recharge. This allows them to maintain a certain serenity in situations of loss, failure and crisis.


They offer support and encouragement and show they care 

Inspirational leaders also motivate people by being supportive and providing encouragement. They are authentically caring, respectful of others, and willing to listen to people on all levels of the organization. They make a concerted effort to boost the self-esteem of their followers and help them believe in themselves, what they can accomplish, and understand how their work contributes value to the organization. This attitude of helpfulness is genuine and unselfish and unleashes the potential in people. And it fosters loyalty. These leaders know that their own effectiveness depends on bringing the best out of their people. 


So, my advice here is to be lavish with praise and recognition – where it is deserved. 

 

  • Increase the ratio of praise to criticism
  • Praise specific behaviors and achievements
  • Look for employees doing things that are positive and valuable to the organization, and show your appreciation
  • Recognize and celebrate accomplishments
  • Deliver praise as soon after the event as possible 

 

They know how to get buy-in

 Inspiring leaders motivate people by making an effort to enlist their support, ask for their input, genuinely consider their needs and opinions and get them to feel part of the solution or initiative. They know that they can’t create a successful business alone. They know they need cooperation and support for their proposals from a variety of stakeholders if they are going to accomplish their goals. 


 They have the ability to influence, persuade and motivate others to support their initiatives. They systematically identify key individuals and organizations whose support is essential and what are the things that each of these stakeholders’ values. Then they propose their ideas or initiative to them in a manner that combines persuasion based on a credible command of the facts with a willingness to listen and adjust to their needs, values, priorities and concerns. 


Building support requires dialogue, really hearing others perspective and the reasons for their resistance. They understand how to influence rather than demanding, intimidating or just pushing too hard. This simply creates resistance. They understand that proactively involving people in problem-solving or decision-making helps to build cooperation and support because they become part of the solution and their points of view and suggestions may not only be useful but makes them feel a part of the solution. 


They show confidence without arrogance

Inspirational leaders are confident and secure, and their teams can sense this. They simply feel that they have what it takes to succeed, and this is reassuring to their followers. In other words, they are comfortable in their own skin. They are not plagued by fear or insecurity. They believe in themselves. As a result, they don’t hesitate to take charge when the situation requires them to do so. Their sense of self-worth is solid and secure without arrogance, pride and hubris. 


 Many are quite modest about their accomplishments and openly admit that they have weaknesses. They reflect upon their past successes and failures and recognize and learn from them. As one direct report put it, “His confidence inspires us, but he is also humble and always willing to learn.” This causes others to see them as human, authentic and unpretentious. They are simply real; what you see is what you get. 

share this

Related Articles

Related Articles

When Should a Founder Bring in a COO? And why choosing the right type of COO could save or sink your

When Should a Founder Bring in a COO? And why choosing the right type of COO could save or sink your company

By Rich Hagberg • September 28, 2025
One of the biggest dilemmas that founders face knowing when and why to bring in a Chief Operating Officer (COO) . Too early, and you risk creating bureaucracy before the business finds its footing. Too late, and the founder becomes a bottleneck, throttling growth and burning out teams. Get the wrong type of COO, and you’ll spark culture clashes or stifle innovation. I have had 4 COOs over my career. Their styles and capabilities were very different and the role I needed them to play differed dramatically based on the stage of the company. Some of them worked out beautifully and were the perfect complement to my founder tendencies and limitations. Some were a disaster. Here is what I learned. The COO is the most variable role in the C-suite. Some founders never hire one. Others go through three or four before finding the right fit. In many cases, the question isn’t if you need a COO—it’s what type of COO your company and your leadership style demand at this stage of growth. Let’s break this down. Why COOs Matter Founders are visionaries. They are idea machines, market spotters, and force-of-nature storytellers who rally talent and investors around a dream. But those same strengths often come paired with weaknesses: disorganization, impatience, lack of systems, and difficulty letting go of control. A strong COO is the counterweight. They turn vision into execution. They stabilize culture. They keep promises made to customers and investors. And, at the right time, they free the founder to do what only the founder can do—set direction, evangelize the mission, and keep the spark alive. But “COO” isn’t one job. It’s a category. And picking the wrong type is like forcing a square peg into a round hole. The Seven Archetypes of COOs 1. The Executor The backbone of day-to-day operations. They build systems, enforce discipline, and make the trains run on time. Best fit: Visionary founders who thrive on ideas but leave chaos in their wake. Stage: Early scaling, when the business needs process without killing momentum. Examples: Sheryl Sandberg at Facebook (balancing Zuckerberg’s vision), Gwynne Shotwell at SpaceX (stabilizing Musk’s whirlwind). 2. The Change Agent The fixer. Brought in when transformation is urgent—scaling fast, restructuring, or pulling out of crisis. Best fit: Founders who know the business has outgrown their own operational grip. Stage: Scaling into hypergrowth, or turnaround scenarios. Examples: Daniel Alegre at Activision Blizzard, leading cultural and operational overhaul. 3. The Mentor/Partner The grown-up in the room. A seasoned leader who steadies a first-time or young founder, often more coach than operator. Best fit: Visionary but inexperienced founders, often in the earliest stages of institutional growth. Stage: Transition from startup scrappiness to formal organization. Examples: Eric Schmidt at Google—while not COO by title, he played this role for Page and Brin. 4. The Heir Apparent The COO as CEO-in-waiting. They take on broad P&L responsibility, often shadowing the founder before succession. Best fit: Companies preparing for leadership transition. Stage: Later scaling into maturit Examples: Tim Cook at Apple before succeeding Steve Jobs. 5. The MVP Functionalist The specialist. A COO with deep expertise in one critical area—finance, product, supply chain, or sales. Best fit: Founders strong in vision but weak in a single domain essential to scaling. Stage: Startup to early scale. Examples: Prabir Adarkar at DoorDash, covering finance and operations. 6. The Complement to the CEO’s Gaps A tailor-made role. If the founder is a disorganized visionary, the COO is structured and disciplined. If the founder is technical but introverted, the COO is outward-facing and people-savvy. Best fit: Any founder aware enough to know their own blind spots. Stage: Anywhere, but especially scaling. Examples: Sandberg balancing Zuckerberg’s lack of operational rigor; Shotwell countering Musk’s volatility. 7. The Integrator/Hybrid The most complex type. They unify strategy, execution, culture, and talent at once—bridging across multiple functions. Best fit: Complex, multi-line businesses with global teams. Stage: Scaling into maturity. Examples: Angela Ahrendts at Burberry, integrating brand, culture, and operations before moving to Apple. Why Founder–COO Relationships Fail So Often If the COO role is so valuable, why do so many founder–COO relationships crash and burn? Boards are often gun-shy about hiring COOs because they’ve seen these partnerships implode. The reasons fall into several predictable buckets. 1. Lack of Role Clarity The fastest way to sabotage the relationship is leaving the COO’s job undefined. Who owns what decisions? Where does accountability lie? If the COO’s role overlaps with the founder’s, or isn’t communicated to the rest of the team, the COO quickly becomes either a glorified project manager or a powerless deputy. Both end badly. 2. Founder’s Inability to Let Go Many founders simply can’t let go. They want to approve every detail, revisit every decision, and undermine the very autonomy they hired the COO to exercise. A COO who feels second-guessed or constantly overruled either disengages or quits. 3. Misaligned Vision and Values Operational excellence isn’t enough if the COO doesn’t fully buy into the founder’s vision and cultural values. When the COO wants to optimize for stability while the founder is pushing disruption—or vice versa—the two end up pulling the company in opposite directions. 4. Trust and Emotional Reactivity Trust is fragile. If the founder is volatile under stress, or the COO isn’t skilled at navigating the founder’s personality, the relationship becomes brittle. Outbursts, defensiveness, or miscommunications erode psychological safety between them and ripple across the organization. 5. Succession Ambiguity and Power Tensions Is the COO being groomed as the future CEO—or not? Few questions create more tension. If expectations aren’t clarified up front, the COO may feel misled and the founder may feel threatened. Meanwhile, employees begin to compare the two and pick sides. Boards have seen this movie before, and it rarely ends well. 6. Unrealistic Expectations Founders and boards often expect the COO to “fix everything yesterday.” In reality, operational improvements take time—learning systems, culture, and people. When results don’t appear overnight, frustration builds. On the flip side, some COOs expect to make sweeping changes immediately, without respecting the founder’s legacy or the team’s tolerance for disruption. 7. Culture and Communication Breakdowns The founder and COO need structured ways to align—weekly check-ins, clear communication norms, and mechanisms to resolve disagreements. Without them, minor irritations accumulate into major grievances. Worse, the team sees open conflict at the top and begins to question who’s really in charge. 8. Identity and Ego Issues Let’s name the elephant in the room: many founders see hiring a COO as an admission of weakness. They sabotage the hire by bypassing the COO or contradicting them in front of the team. On the other side, ambitious COOs often chafe at being “Number Two.” If the relationship isn’t anchored in humility and respect, egos will clash. How Founders Can Prevent the Breakdown Knowing the pitfalls is only half the battle. Preventing them takes deliberate work: Define the COO’s mandate explicitly —what they own, what’s shared, and what stays with the CEO. Set up trust rituals early —regular one-on-one check-ins to surface tension before it festers. Align on vision and values —not just what you’re building, but how you’ll build it and why it matters. Clarify succession expectations —is this person a partner, a long-term No. 2, or a potential future CEO? Say it. Set realistic timelines —agree on milestones, but don’t expect magic overnight. Communicate clearly to the org —so employees understand who does what and aren’t caught in the crossfire. Hire for complementarity —choose a COO who fills your blind spots, not one who duplicates your strengths. The founder–COO relationship is like a marriage with the pressure of Wall Street, venture capital, and 200 employees watching. When it works, it’s transformative. When it doesn’t, it’s messy, public, and expensive. The Founder × Stage × COO Fit So how do you know when and which type of COO to bring in? Here’s the decision logic: Startup + Visionary Founder Needs an Executor or Mentor/Partner. Someone to turn chaos into motion without killing energy. Startup + Operator Founder May not need a COO yet. If they do, it’s usually a domain specialist (MVP Functionalist) to cover blind spots. Scaling + Visionary Founder Needs an Integrator or a Complement to gaps. Execution and people issues become bottlenecks. Scaling + Operator Founder May need a Change Agent or Heir Apparent. The role becomes about transformation or succession. Mature Company + Visionary CEO The COO role is succession-oriented (Heir Apparent) or complex integration (Hybrid). Mature Company + Operator CEO Sometimes no COO is needed; the CEO already runs operations. In other cases, the COO is simply the next CEO waiting in line. Takeaway Hiring a COO isn’t about “offloading work.” It’s about admitting what kind of company you’re really building, and what kind of leader you are. If you’re the spark but not the engine, you need an Executor. If you’re a force of change but leave wreckage behind, you need a Relationship-Builder complement. If you’re building for the long haul, sooner or later you need an Heir Apparent. The best founders aren’t the ones who try to do it all. They’re the ones who know when to step aside—just enough—to let someone else make the company stronger. Closing Thought In Founders Keepers, I often say: what got you here won’t get you there. The founder’s job is to create possibility. The COO’s job is to turn possibility into performance. The only real mistake is waiting until your company is already fraying before you decide which kind of COO you need. By then, the cost of waiting may be higher than you can afford. 
From Vision to Reality: How Founders Can Ensure Their Ideas Get Implemented

From Vision to Reality: How Founders Can Ensure Their Ideas Get Implemented

By Rich Hagberg • September 21, 2025
The Founder’s Dilemma Founders are fountains of ideas. You see possibilities everywhere, you connect dots others can’t, and you can sell a vision with enough energy to light up a room. But there’s a problem: ideas don’t implement themselves. They need systems, people, and execution discipline. In my coaching of more than a hundred startup founders—and backed by data from 122 founder assessments—the same challenge comes up again and again: founders are world-class at generating ideas, but their companies stumble when those ideas aren’t translated into action. I have struggled with this tendency for my entire career. My creative ideas just keep bubbling up and my execution discipline and focus can’t keep up. I have the classic “shiny object” distraction problem shared by many founders. The irony? The very traits that made me a classic visionary evangelist—creativity, independence, impatience, and risk tolerance—are the same traits that made execution difficult. If you want your ideas to live beyond a brainstorming session, you must learn to do what feels unnatural: offload execution, delegate real authority, and empower others to carry your vision forward. Why Great Ideas Die Without Execution Most failed ideas don’t die because they weren’t brilliant. They die because: 1. The founder keeps ownership too long, trying to do everything personally instead of empowering others. 2. Delegation is fake, with tasks assigned but no real authority granted, leaving the founder still in control. 3. Priorities aren’t clear, so teams are overwhelmed by too many initiatives and unsure of what matters most. 4. Accountability is weak, with no consistent follow-up or consequences when commitments slip. 5. Founders love possibilities but resist discipline, avoiding the planning, sequencing, and focus execution requires. 6. Ideas are left open-ended, because founders generate endlessly but fail to converge on closure and completion. 7. Optimism turns unrealistic, as founders overestimate what’s possible and ignore what could go wrong. 8. Expectations aren’t communicated, leaving teams uncertain about roles, outcomes, and next steps. 9. They rush ahead without buy-in, moving too fast to bring others along and win their commitment. 10. They undervalue operators, failing to leverage managers of execution who can turn vision into systems. This is what I call the founder time bomb. Early success convinces you that your personal hustle is the engine of growth. But as the company scales, hustle becomes a bottleneck. Unless you shift, your best ideas will choke on lack of oxygen. Step 1: Translate Vision Into Tangible Priorities Your job as a founder isn’t to hand down a 37-slide vision deck and hope for the best. Your team needs clarity. That means breaking down your big idea into concrete, winnable battles. Set the “critical few” : Define 3–5 top priorities for the quarter. Outcome > activity : Don’t assign tasks, define the result (e.g., “Increase retention by 5%”). Overcommunicate : If you feel like you’re repeating yourself, you’re doing it right. One founder I coached changed his company trajectory by beginning every weekly meeting with just three priorities. The noise vanished. His team finally knew what mattered. Step 2: Practice Real Delegation, Not Fake Delegation Too many founders think delegation means assigning a task and then hovering over the person doing it. That’s not delegation—that’s micromanagement with extra steps. Real delegation means: Handing over ownership, not just chores. Giving the decision rights along with the responsibility. Accepting that “80% their way” may be better than “100% your way.” Here’s a phrase worth practicing: “You own this. You don’t need my approval.” Few sentences are harder for founders to say. Few sentences build more trust. Step 3: Build a Culture of Accountability Without Becoming a Tyrant Accountability is where many founders stumble. They either avoid conflict (hoping problems fix themselves) or they overreact when deadlines slip. Both extremes poison execution. Healthy accountability requires: Clear expectations : No hidden rules or shifting targets. Visible commitments : Public goals build peer pressure to deliver. Rhythms of review : Regular check-ins that aren’t nagging but structured. Consequences : Underperformance addressed quickly, not ignored. Accountability isn’t punishment—it’s support. It says, “I expect the best from you because I believe in you.” Step 4: Share Information Like Oxygen Execution thrives on information. Yet many founders hoard knowledge—sometimes out of habit, sometimes out of insecurity. Teams can’t execute if they don’t understand the why behind the what. Empowered teams need: Transparent dashboards : Everyone sees progress metrics. Context, not just orders : Explain reasoning, not just results. Accessible strategy docs : Kill the “founder black box.” When people understand the big picture, they stop running back to you for every decision. They start acting like owners. Step 5: Invest in Second-Line Leaders Scaling execution isn’t about having 50 great individual contributors—it’s about having 5 managers who can each lead 10 people effectively. Yet many founders neglect their managers, focusing instead on product or fundraising. Strong second-line leaders can: Translate your vision into plans. Coach their teams instead of doing the work themselves. Spot and develop talent below them. Your leverage point is not how many people you personally manage, but how many leaders you multiply. Step 6: Watch Out for Founder Autopilot Your instincts—boldness, independence, impatience—got you this far. But they can sabotage you at scale. I call this founder autopilot. It looks like: Jumping back into execution “just to speed things up.” Overloading the team with new initiatives before finishing the old ones. Cutting around your managers and making unilateral calls. The cure is self-awareness. Tools like 360 feedback and coaching help you notice when you’ve slipped back into heroic founder mode instead of scalable leader mode. Step 7: Celebrate Execution, Not Just Ideas Most founders glorify the spark of ideation but forget to recognize the grind of implementation. If you only celebrate creativity, you’ll get lots of brainstorming but little delivery. Shift the culture: Spotlight the team that launched, shipped, or solved—not just the one that dreamed. Tell stories of execution at all-hands meetings. Publicly recognize “builders,” not just “visionaries.” What you celebrate becomes what your team repeats. The Founder’s Evolution: From Genius to Builder of Builders The founder who can’t offload execution ends up as the bottleneck, exhausted and surrounded by frustrated employees. The founder who masters delegation and empowerment evolves into something much more powerful: a builder of builders. In my research, the difference between founders who scaled 10x and those who flatlined wasn’t idea quality. It was execution quality. The 10x founders learned to empower others, create accountability systems, and step back from doing everything themselves. The founder who shifts from “I’ll do it” to “I’ll ensure it gets done” makes the leap from fragile startup to durable company. Closing Thoughts Ideas ignite companies, but execution sustains them. If you want your vision to shape reality, you must resist the temptation to hold the reins too tightly. Translate vision into priorities. Delegate real authority. Build accountability and transparency. Develop leaders beneath you. And above all, celebrate execution as much as you celebrate ideation. That’s how founders ensure their ideas don’t die in the brainstorm stage but live on as products, services, and companies that change the world. 
When Loyalty Becomes a Liability: Why Founders Must Confront Team Obsolescence

When Loyalty Becomes a Liability: Why Founders Must Confront Team Obsolescence

By Rich Hagberg • September 14, 2025
Every founder eventually faces a moment of reckoning. It doesn’t arrive with a clear announcement. It creeps in gradually, often disguised as small frustrations: projects slipping, team members complaining, or investors quietly losing confidence. And at the center of it all is a painful truth: The people who carried you through the chaos of the early days, the ones who slept on office couches, pulled all-nighters, and took pay cuts to bet on your dream—can no longer keep up. The company has grown. The stakes are higher. And the job has outgrown them. This is one of the hardest truths in entrepreneurship, and one most founders struggle to face. Instead of acting, they convince themselves: “She’ll grow into the role.” “He’s been with me since day one—I can’t let him go.” “Loyalty matters more than resumes.” But here’s the hard truth that separates founders who scale from those who stall: loyalty doesn’t scale. Competence does. The Startup Version of the Peter Principle The Peter Principle tells us that in large corporations, people rise to their level of incompetence. In startups, this principle plays out in hyper-speed. What made someone a hero in a five-person company, improvisation, raw hustle, and the willingness to do anything becomes a liability in a 50- or 500-person company. Think about the hacker who was indispensable in the garage. Brilliant at rapid problem-solving, he could patch servers at 3am and crank out features in a weekend. But leading a team of 50 engineers requires a totally different skill set: planning, delegation, recruiting, building processes. His improvisation becomes chaos. His genius turns into bottlenecks. Or the co-founder who thrived on energy and vision. In the early days, charisma and instinct were enough. But scaling requires a discipline around metrics, process, and accountability. What once looked like bold leadership now looks like reckless improvisation. Even the beloved “culture carrier”—the person who organized team offsites, boosted morale, and made the company feel like family—can become a roadblock. When decisions stack up and complexity explodes, loyalty and good vibes aren’t enough. What the company needs is a strategic operator, not just a glue person. This is what I call team obsolescence : the brutal, recurring reality that many early employees get outgrown by the job. The Head vs. Heart Conflict Why do founders struggle so much with this? It’s not because they’re blind. It’s because they’re human. The tension isn’t just intellectual—it’s emotional. Guilt and Indebtedness : Early employees bet on you before anyone else did. They turned down safer jobs, endured lower salaries, and staked their careers on your vision. Cutting them loose feels like betrayal. Psychologists call this the principle of reciprocity: the human drive to repay sacrifices. Founders feel they owe these people more than just a paycheck. Fear of Losing the Magic : Founders often worry that bringing in “outsiders” will ruin the scrappy, intimate culture that made the company special. This is a classic case of in-group bias. We trust the familiar, even when it’s no longer fit for purpose. Many founders cling to the idea that culture is fragile and must be protected from “corporate types.” Conflict Avoidance : Few people relish difficult conversations. Founders, especially those wired to inspire rather than confront, often procrastinate on hard personnel decisions. This is loss aversion at work: the immediate pain of conflict feels worse than the long-term risk of stagnation. Blind Loyalty Bias : Founders frequently overestimate an early employee’s ability to “grow into” a scaled role. This is the halo effect: past loyalty and past performance cast a glow that blinds you to current shortcomings. This is the founder’s head-versus-heart struggle. Rationally, you know the company has outgrown someone. Emotionally, you can’t let go. A Founder’s Story: When Friendship Meets Reality One founder I coached built his company with a close college friend. This friend was the first engineer, working nights and weekends to bring the product alive. He coded nonstop, patched outages at all hours, and was the reason the company survived its early chaos. By Series B, the company had 80 employees. Suddenly the role wasn’t about heroic coding; it was about systems, processes, and leading dozens of engineers. The founder knew his friend was drowning. Deadlines slipped. Senior engineers were frustrated. Investors raised eyebrows. But he kept saying, “He’s been with me since the beginning. I owe him.” Eventually, he faced reality. With coaching, he had the hard conversation: “You’re invaluable to this company, but the role has outgrown your strengths. Let’s find a place where you can thrive without being set up to fail.” The friend transitioned into a specialist role where his brilliance could shine without the weight of leadership. The company brought in a seasoned VP of Engineering. Painful as it was, the decision saved both the company and the friendship. This is the essence of true leadership: honoring loyalty without letting it sink the ship. The High Price of Avoidance The costs of avoidance aren’t abstract—they’re devastating. Execution Bottlenecks : An underqualified leader slows everything down. Projects drag, opportunities slip, and customers churn. It’s like trying to scale a skyscraper on a foundation built for a cottage. A-Players Walk : The best people won’t stay if forced to work under weak leaders. They leave, taking ambition and excellence with them. The company becomes a place where mediocrity thrives. Culture Corrodes : Protecting underperformers sends a loud signal: politics matter more than performance. Over time, resentment builds. High performers check out. Trust erodes. Investor Mistrust : Boards and investors notice quickly when execution falters. They start asking tough questions—not just about your team, but about your judgment as a founder. Founder Burnout : Perhaps the greatest cost: you, the founder, pick up the slack. Instead of scaling your vision, you spend nights fixing problems others should solve. Exhaustion sets in. Your energy, the one resource no one else can replace, gets depleted. What feels like an act of loyalty today can quietly strangle the company’s future. Another Case: The Culture Carrier I once worked with a founder whose operations manager was beloved by the team. She organized payroll, ordered office supplies, and planned offsites. She was the glue. But when the company hit 150 employees, the demands shifted. The job required scalable systems, compliance expertise, and strategic HR planning. She was still running things on spreadsheets and memory. People loved her, but they were increasingly frustrated with the chaos. The founder feared that replacing her would “destroy the culture.” Eventually, he hired a Head of People. But instead of cutting her out, he redeployed her into an employee experience role. She continued to be the cultural heartbeat of the company while freeing leadership to professionalize operations. The lesson: redeployment, when done thoughtfully, preserves loyalty without sacrificing competence. What Great Founders Do Differently The best founders I’ve studied don’t avoid this problem. They approach it with discipline and compassion. 1. They Diagnose Early They don’t wait until the crisis is obvious. They ask themselves, “If I were hiring for this role today, at this stage, would I choose this person?” If the answer is no, they don’t kick the can—they act. 2. They Separate Potential from Plateau Some people can grow. With coaching, training, and mentorship, they can rise to the next level. Others plateau quickly. Great founders don’t confuse the two. They invest in growth where it’s possible and cut losses where it’s not. 3. They Redeploy with Respect This isn’t about discarding people. The best founders move loyal employees into roles where their strengths shine—special projects, advisory positions, cultural leadership. Redeployment preserves respect and institutional knowledge while freeing the company to grow. 4. They Upgrade Before Crisis They don’t wait until the engine fails. They hire seasoned executives early, before execution falters. And they communicate clearly: every stage requires different skills. Honoring the past doesn’t mean guaranteeing the future. Leadership with Compassion The real test of a founder isn’t whether you can attract capital or inspire a team. It’s whether you can make the painful calls that protect the company’s future while respecting the people who got you started. True leadership is not about cold detachment. It’s about balancing head and heart: Gratitude means honoring contributions, celebrating sacrifices, and rewarding loyalty. Governance means making clear-eyed decisions about whether someone can perform at the next level. When founders confuse the two, they put sentiment ahead of survival. But when they balance both, they create companies that endure. One founder I know addresses this directly with his team: “Every stage requires new skills. Some of us will grow into them. Others will contribute in different ways. What matters is building a company that lasts.” That’s leadership with compassion—telling the truth while honoring the past. Why This Matters More Than Ever The startup environment today is more unforgiving than ever. Capital is tighter. Investors are quicker to act. The margin for error is smaller. In this climate, founders who delay tough calls are at greater risk than ever. Execution failures and cultural corrosion are spotted instantly by boards and competitors. The founders who scale are those who balance loyalty with realism—who act before the cracks widen into chasms. The Founder’s Real Test It’s easy to celebrate early wins and bask in loyalty. The real test is whether you can honor that loyalty without being trapped by it. Because here’s the paradox: The only way to truly honor early sacrifices is to build a company that endures. And that means making the call when loyalty becomes liability. Call to Action If you’re a founder facing this dilemma, don’t wait for the board to force your hand. Don’t wait for top talent to walk or investors to lose confidence. Confront it now. Diagnose honestly. Redeploy with respect. Upgrade before crisis. Be compassionate. Be decisive. Be clear-eyed.  Your team—and your company—will thank you later.
ALL ARTICLES