Leadership: Lost and Found  (Prepared by Ann Bown of Charisma Communications cc)

2007 The year ahead. Or what do them bones say?

Founder’s Syndrome (FS) is not unique to the non-profit sector in fact it exists in the business world, you will find it in many sectors; sports clubs, professional associations and even in political circles.  This syndrome can be identified in a church choir or even a multi-billion rand corporation. It’s everywhere! Transitional leadership is difficult and fraught with challenges and often this is exasperated by ‘founders’ who won’t let go of what is perceived to be their baby. Diagnosing the ‘syndrome’ isn’t easy and even more difficult to accept and address when it exists in your organisation. 

Founders Syndrome is said to affect founders or leaders who bring the organisation through tough times, such as a startup, near financial collapse, or overseeing a tremendous growth spurt, or mobilisation and lobbying for political change. During these challenging times, founders usually make all of the (mostly reactive) decisions themselves, based on their individualistic viewpoints.

The life cycle of an organisation

The Infant:

• Most non-profit organisations exist to serve a social need in society, they are so fired-up about the cause that often in the startup phase give little thought to lack of policies and procedures being in place, such things come much later. The focus will be in strengthening the projects and programmes. During the startup stage the organisation will be driven by and dependent upon the founder’s energy levels, those who have a strong ownership and an emotional commitment to the vision.  The organisation will be small and simple in its way of doing business and operate on a relatively local level – just in a single community or even a province. The financial security will be limited with no reserve funding, few assets and more than likely have a single source of income – in most instances the NPO will survive on the generosity of the founding members who personally cover items such as the telephone account and put petrol in the tanks of less well-off board members.  Or the organisation could be fortunate enough, by efforts of the founders, to be supported through investment philanthropy.

The mature adult:

• As the organisation evolves it needs to work towards the next level of second and third generation board members, attracting leaders who will be more adept in handling the business. Often such personalities will have different skills and talents to that of the founders.  Generally they are not great on new ideas but perfect on perfecting what others have created. As the operations expand and the day to day functions become more complex and demanding procedures and processes will need to be in place. A higher level of focus will be placed on sustainability to meet fixed cost and salaries and the need for generating reserves for rainy day funds will be more apparent and the sources of income will need to be broadened and diversified.  The board will recognize a need to secure more assets and maybe even property, all of this will need plans, management systems and policies in place.  The character of the organisation will need to become more mature.

Although founder’s syndrome is mentioned in negative tones we need to acknowledge the positive aspects and qualities. Founder’s have an entrepreneurial spirit, they are exceptional people, dynamic individuals who are driven by passion and Vision, outsiders will liken them to ‘dynamite’ because they can get any job done and shift the status quo. They are compelling and relentless in nature and will have a knack by attracting others to the cause to achieve their endeavours.  They make the world spin a bit faster and are often a lot of fun to be around.  Some are referred to as Rainmakers; people who can influence progress and bring in new ideas and new opportunities to their organisation.

It’s a fact, they do ignite numerous fuses but it’s also true that they can leave a trail of devastation and unhappiness in their wake if other players in the organisation aren’t proactive and neglect to motivate a course of action for succession and instill a culture towards professional development.

What is founders’ syndrome?
According to Carter McNamara, an international leadership and management specialist, Founder's Syndrome occurs “when an organisation operates according to the personality of the chief executive or board, rather than according to its overall mission”. He further suggests that it is imperative to learn about traits of founders and work towards leadership practices to sustain and enhance the changing non-profit. 

Some traits and behaviours include the following;

• They will make reactive, crisis-driven decisions with little input from others. React to most problems with the lament "if only I had more money or if only I had more resources."
• If the Founder is the Chairman s/he will change the Vision every few years in an attempt to portray organizational renewal or to become indispensable once more.
• They just stay in charge/control far too long – two terms of office of 3 years each is maximum.
• They won’t have time for strategic planning sessions and just sees such gatherings as nothing more than talk-shops.
• If the Founder is also the executive director they might attend mostly to fundraising and generating new ideas
• Often they will hand-pick their Board members and staff as they seek people to be loyal to themselves more so than working for the mission.
• The will recruit Board members through their network efforts and not through interest in the objectives of the organisation.
• Count on whoever seems most loyal and accessible, and motivate by fear and guilt, often without realizing it – will often bend a few ears on the telephone before a board meeting for support on a particular issue.
• Only hold occasional staff meetings to report crises and shed blame.
• Will work to remove Board members who disagree with the founder’s views.
•  Have a very difficult time letting go of the strategies that worked to quickly grow the organization or service, despite evidence that these are no longer relevant.

Ultimately, Founders Syndrome sets in because the organisation becomes dependent, not on the systems and structures of the organisation, but on the unique style of the leader -- whether the leader is consistently decisive or consistently indecisive. It can eventually lead to the demise of the organisation and damage its reputation.

How can we avoid it?
McNamara points out some interesting good traits to nurture. He states that leaders of lasting, well-developed organisations have experienced numerous changes, and managed to develop their organisations and themselves along the way. The founders’ will be keen to learn new management styles and mentor new people for smooth succession and encourage new ways of getting results and achieving success.

However, it’s vital that NPO’s continue to meet the needs of their clients/beneficiaries as a priority – to be focussed only on the development of new leaders and neglect or stop delivery of programmes whilst the new shoes change feet is irresponsible. Life-cycle change should be from entrepreneurial, sometimes spontaneous growth to planned and managed development. This requires change in the leadership style to what has become customary of the founders.

Developed leaders will:

• Live the Vision (for it)
• Appreciate strategic plans and budgets as guidelines, and realize these ultimately make their organisations more responsive to the needs of their clients/beneficiaries.
• Make proactive decisions based on mission and affordability.
• Make staffing decisions based on responsibilities, training, and capabilities.
• Value Board and staff members for their strong expertise and feedback.
• Sustain strong credibility among clients, partners and service providers.

If you are a founder feeling bruised and unappreciated, take heart, many others have gone before you and been daring and bold enough to step back and let the next generation take guardianship of what is your baby.  Consider Bill Gates who has just retired from Microsoft after building an empire – he must have some qualms. President Nelson Mandela, he gave life to a new South Africa and this may be disappointing to him at the moment but he created even greater organisations.  Henry Dunant founder of the Red Cross neglected his own business, in favour of setting up the humanitarian relief organisation, to such an extent that he was declared bankrupt and expelled from the organisation he established.  He was overheard to say ‘it was worth the pain’.

A founder’s greatest gift is to leave a legacy, transforming a dream into reality that inspires others to continue with the vision and realise ongoing success.  A good leader will have an exit strategy in place and stick to the timeframe, like Maria Ramos of Transnet.  He or she will be in the background and ensure that the organisation passes into capable hands and remains a stable and respected organisation.  As the old saying goes no-one is indispensable and if you put your hand into a bucket of water and remove it quickly (or slowly) it will leave a few ripples for awhile but then settle once more.  But also remember that it was the Rainmaker who put the water into the bucket in the first place.

Acknowledgement to Carter McNamara of Prism Leadership Group “What is Founder’s Syndrome”

ENDS

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