A founder may know which supporter will fund an unusual project, which colleague can solve a difficult problem, and which apparent opportunity would distract from the purpose. Many decisions become easy because that person connects information others hold separately.
This can be a source of remarkable capability. It is also a dependence. The organization may appear more mature than it is because the founder continually supplies coordination that its formal processes do not explain.
Delegating tasks is not enough
When the founder leaves, individual roles may still be filled while the connections among them weaken. A successor can inherit the title without inheriting trusted relationships, practical judgment, or the confidence to make exceptions.
Succession and institutional knowledge therefore concern more than identifying a replacement. Other people need to develop real authority, understand the reasons behind consequential choices, and work with relationships previously held by one person.
Trying to remove dependence too quickly can also damage the capability being transferred. The aim is not to pretend the founder’s contribution was unnecessary. It is to discover what that contribution consists of and create conditions in which others can carry it, adapt it, and eventually make good decisions the founder would never have encountered.
Real cases
- Haier: markets and microenterprises inside a giant company — How much autonomy can small enterprises have within a large corporate platform?
- Zappos: changing the rules and offering an exit — What can a forced governance transition reveal about consent and implementation?