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The 10 Things Stakeholders Want Founders to Change

September 15, 2024

Being a founder is tough, and if you’re reading this, you know it. You’ve got vision, drive, and creativity. These are your natural strengths and the reasons you started this journey. But where do you need to grow to avoid hitting the wall like most founders do in the long run? Your direct reports, investors, advisors and key employees know the answer. 

 

Our data from 122 founders based on feedback from their teams, reveals a hard truth: You need to change. Based on coworker and investor ratings of the importance of 46 different competencies, this blog examines their priorities, the gaps between what they want and what you are doing. These aren’t just skills that would be nice for you to have. These are the areas where your key stakeholders are feeling frustrated, where they see you dropping the ball. When you fail to improve in these critical areas, you’re not just holding yourself back—you’re hurting your company. The people you work with are counting on you to step up, and when you don’t, it’s creating friction, delays, and missed opportunities.

 

1. Disciplined Decision-Making: Better Judgment and Overcoming Bias


Founders often thrive in fast-paced environments, but when decisions are made hastily, they risk being driven by bias rather than sound judgment. Whether it’s hiring the wrong person or choosing the wrong strategic direction, poor decisions can derail your company’s growth. Or, founders decide too quickly and impulsively and then must remake their original decision, leading to accusations of waffling. Direct reports get frustrated with reactive decisions and inconsistency, feeling confused about priorities. Investors get anxious when they see indecisiveness or impulsive decisions wasting resources. Effective decision-making requires discipline, not just instinct. Founders need to recognize their cognitive biases and tendency to be reactive and take deliberate steps to gather data, seek diverse input, and weigh all options before committing to critical decisions.

 

How to develop it:

  • Learn the difference between intuition and impulse: Founders often act on a hunch, mistaking impulse for valuable insight. Recognize that while intuition can guide you, it should be one data point among many. Treat your instincts as signals to investigate further rather than definitive answers.
  • Define the problem clearly: Before jumping to a solution, spend time carefully defining the problem. Often what seems like a symptom is indicative of a larger issue that requires deeper analysis.
  • Create a decision framework: Categorize decisions into high-impact ones that need careful analysis and low-impact ones that can be made quickly. For critical decisions, gather data and consult others. For smaller ones, act swiftly. This balances thoughtful decision-making with maintaining momentum.
  • Build a “star chamber” of advisors: Surround yourself with experienced voices who challenge your thinking before you make a fatal leap. Ask disconfirming questions to challenge assumptions and avoid bias: Instead of seeking validation, ask your team, “What am I missing?” or “Why might this idea fail?” These questions surface concerns, generate alternative solutions, and encourage open dialogue. This approach reduces bias and fosters a culture where diverse perspectives improve decision-making.

 

2. Strategic Implementation: Vision Means Nothing Without Execution


You’ve got big ideas, but without a clear, strategic plan, those ideas remain daydreams. Too often, founders confuse activity with progress, mistaking endless pivots for growth. Your team needs to know where the company is going, and you need the discipline to execute. They get discouraged when they see you spinning your wheels with little tangible progress in turning your grand vision into a concrete plan. Investors expect execution and get frustrated when you focus too much time on pig-picture thinking without a clear path to implementation

 

How to develop it:

  • Turn Vision into Actionable Steps: Break down your long-term vision into smaller, actionable milestones. Create clear, measurable goals for your team so that the grand vision is not just a distant ideal but a series of achievable steps.
  • Delegate Decision-Making Authority: Empower your teams to make decisions on execution. Founders often struggle with letting go, but successful implementation requires trusting your team with ownership over how goals are executed.
  • Institute Regular Review Cycles: Schedule frequent check-ins and progress reviews. These are not just for status updates but for course correction. Review data, analyze outcomes, and adjust strategies as needed to ensure that execution stays aligned with the broader vision.
  • Communicate the Why Behind the What: When assigning tasks, always explain how each piece of execution ties back to the bigger picture. Connecting the team's efforts to the company's overall vision keeps everyone motivated and aligned on priorities.

 

3. Focus and Prioritization: Don’t Drown in Distraction:


Most founders try to do too much and end up spinning their wheels. The result? Burnout, team frustration, and a company that’s stuck in neutral. If you’re not laser-focused on the right things, your startup is doomed to drift. You can overwhelm your team with too many initiatives leading to burnout and lack of focus. Investors lose confidence when you jump from idea to idea without delivering the results that matter the most.

 

How to develop it:

  • Learn to say no: Founders often get excited about every opportunity, but you need to say no to distractions that don’t align with your core priorities. This discipline is key to maintaining focus and driving meaningful progress​.
  • Stop prioritizing quantity over quality: Avoid the trap of busy work. Ensure that your time and energy are directed toward high-impact activities that genuinely move the company forward.
  • Set ruthless priorities: Start each day by asking, “What’s the highest-impact thing I can do today?” Focus on one bottleneck at a time.
  • Delegate non-critical tasks: You can’t do it all, and you shouldn’t try. Hire experts for areas outside your zone of genius.

 

4. Finding and Attracting Talent: The Right People Make the Difference.


You can’t scale without the right team, but many founders struggle to find, attract, and retain top talent. Hiring the wrong people—or worse, keeping the wrong people—can cripple your company’s ability to grow. Poor hiring decisions or a failure to let go of ineffective team members can create a dysfunctional environment and drag the team down. If key roles remain unfilled or the wrong people are in critical positions, investors will lose faith in your ability to scale the business.

 

How to develop it:

  • Use a disciplined hiring process: Create a structured approach to interviewing and hiring. Include input from multiple team members, ensuring the final decision is based on facts, not just gut feelings.
  • Hire for the team, not just the position: Consider how each new hire will fit within the broader team dynamic, ensuring a cultural and functional match that supports long-term growth.
  • Be strategic about hiring: Focus on the roles that will have the biggest impact on your company’s next stage of growth.
  • Invest in leadership development: Top talent wants to grow. Create opportunities for development within your organization, or they’ll leave.

 

5. Building Strong Teams: The Founder Doesn’t Scale, But Teams Do


In the early days, it’s easy to rely on a scrappy, all-hands-on-deck mentality. But as your company grows, that approach doesn’t work anymore. Teams need structure, defined roles, and accountability to scale. A lack of structure and clear roles leads to confusion and inefficiency, leaving employees feeling unsupported and unclear about expectations. Investors worry that if you can’t build a cohesive team, the company will stagnate.

 

How to develop it:

  • Promote psychological safety: Encourage open dialogue within your team by creating an environment where people feel safe to share ideas without fear of retribution. This fosters creativity and problem-solving​.
  • Clarify roles and responsibilities: As your startup scales, clearly define everyone’s role to avoid confusion and ensure that everyone knows what they are accountable for.
  • Foster a culture of collaboration: Your job is to align the team and ensure they work toward the same goals. Communicate openly and frequently.
  • Encourage Diverse Perspectives: Make diversity of thought and background a key component of your team-building strategy. Diverse teams tend to be more innovative and can tackle challenges from multiple angles, leading to better problem-solving and creativity.
  • Create Clear Feedback Loops: Establish a culture of continuous feedback, where team members feel comfortable providing and receiving constructive criticism. Clear feedback ensures that performance issues are addressed early, and improvements are made continuously.

6. Delegation and Empowerment: Let Go to Grow


Founders often struggle with delegation, feeling that nobody can do the job as well as they can. But this mentality only limits growth. To scale, you must empower your team to take ownership. Your employees will get frustrated with micromanagement and your failure to trust their abilities. This can cause you to become a bottleneck in decision-making. Investors will see your refusal to delegate as a sign that the company is too dependent on your decisions, limiting its scalability.

 

How to develop it:

  • Push decision-making down: Empower your team by delegating decisions to those who are closest to the issue. Trust that your team can make better, faster decisions when given the authority​.
  • Practice devolution: Encourage your team to take ownership of key tasks, allowing them to grow into leaders while freeing you up to focus on strategy.
  • Delegate with trust, not oversight: Empower your leaders by giving them the freedom to make decisions.
  • Set clear expectations: Ensure your team knows what success looks like, then get out of their way.

 

7. Accountability: Don’t Just Talk, Measure


Accountability is a dirty word for many founders, but it’s what separates the dreamers from the doers. Without accountability, projects stall, and growth falters. Your team needs to know that you’ll hold them to their commitments—and that you expect the same in return. A lack of accountability can result in complacency where people are not held to high standards. Teams get frustrated if you don’t hold people responsible for missed deadlines or poor performance. If investors feel that you are not addressing underperformance, they may begin to doubt that you can maintain operational discipline and deliver on promises. 

 

How to develop it:

  • Create a culture of accountability: Use metrics and milestones to track progress. Hold regular reviews to discuss what’s working and what isn’t.
  • Model accountability: As the founder, lead by example. If you want your team to deliver, make sure you’re following through on your own promises.
  • Create a team operating system: Implement a disciplined process to ensure that your team is held to high standards of excellence. Use objective data and milestones to track progress​.
  • Publicly recognize achievements, privately address failures: A culture of accountability flourishes when success is celebrated, and mistakes are handled in a supportive, private manner.

 

8. Coaching: Help People Be Successful


Founders often avoid difficult conversations, whether it’s giving tough feedback or resolving team conflicts. But dodging these issues only creates more problems down the line. To build a thriving company, you need to get comfortable with being uncomfortable. Employees will feel unsupported when you avoid giving feedback. Without clear guidance, team members are left to flounder, which negatively impacts morale and performance. Investors may see your avoidance of having tough conversations as a lack of the leadership skills needed to drive a high-performing team.

 

How to develop it:

  • Have tough conversations: Use frameworks like Radical Candor to give direct but empathetic feedback.
  • Encourage open dialogue: Create an environment where your team feels safe bringing up issues before they snowball into larger problems.
  • Practice active listening: Show that you value your team’s perspectives by actively listening and considering their ideas before making decisions. This not only improves trust but also fosters a culture of collaboration​.
  • Invest in development: People want to grow but they need to know where and how. Don’t just throw them in the deep end and expect them to swim. If you don’t feel qualified to coach them, then get outside help. 

 

9. Systems and Processes: Your Creativity Needs Structure


Startups thrive on flexibility, but scaling requires discipline. Without systems and processes in place, chaos will eventually ensue, and your growth will stagnate. A chaotic or inefficient work environment frustrates employees, as they constantly face obstacles that slow them down. Investors worry when companies grow without proper systems in place, and see it as signaling the operational inefficiency that can stifle growth.

 

How to develop it:

  • Don’t wait for things to break: Proactively address inefficiency and mistakes.
  • Document processes early: Standardize repetitive tasks so your team can focus on what matters most.
  • Adopt agile methods: Implement frameworks like OKRs (Objectives and Key Results) to keep your company adaptive but focused, ensuring that systems scale as your company grows​.
  • Regularly review and iterate: Your systems must evolve as your company grows. Continuously assess and refine your processes to ensure they remain effective and efficient.

 

10. Conflict Resolution: Avoiding Conflict Is a Leadership Failure


Founders often sidestep conflict, but unresolved tension drags down performance. Healthy teams have hard conversations, and great leaders create environments where those conversations happen constructively. Unresolved conflicts drag down performance and morale. Employees get frustrated when they see you not addressing tensions and let festering issues damage team dynamics. Investors worry that unresolved conflicts within the leadership team or with key employees could lead to bigger problems, such as leadership turnover or productivity losses​.

 

How to develop it:

  • Address conflicts early and openly: Avoiding tough conversations allows small issues to grow into bigger problems. Founders often sidestep conflicts due to discomfort or time constraints, but this avoidance can harm team dynamics. Address issues with empathy and a focus on solutions, ensuring problems don’t escalate.
  • Regulate emotional reactions: Emotional outbursts can fuel conflict rather than resolve it. Founders often react with frustration or impatience, which only intensifies tensions. Practice emotional control during disagreements, giving yourself space to process and focus on finding solutions rather than letting emotions dictate actions.
  • Train your team in conflict resolution: Equip them with tools like active listening and negotiation to handle disagreements productively.

 

Final Thoughts: The Hard Work That Pays Off

 

Being a founder means you’re always learning—often the hard way. The skills that come naturally to you won’t always be the ones you need to succeed long-term. The sooner you face these gaps, the faster you’ll grow, and the more scalable your company will become.


The choice is yours: keep struggling in the same ways or evolve into the leader your company needs to scale. Developing these skills won’t be easy, but it’s the difference between staying stuck or thriving.

 

Are you ready to step up?


As a founder, you possess the vision and drive that sparked your entrepreneurial journey. But to truly unlock your company’s potential, you need to address the leadership gaps that are holding you back. The good news? You don’t have to navigate this transformation alone. My leadership coaching is designed to supercharge your abilities in the critical areas where you need growth, from disciplined decision-making to effective delegation and beyond. Imagine turning your leadership challenges into strengths and your strategic plans into executable results.


If you’re ready to evolve and lead with unparalleled effectiveness, let’s work together to turn your vision into a thriving reality. Discover how my tailored coaching can help you overcome obstacles, inspire your team, and achieve lasting success. Get in touch today to learn more and take the first step toward a transformative leadership journey.

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