The Leadership Transition Every Entrepreneur Eventually Faces

Research & Sources / Entrepreneur Growth

In a small rowing boat, the captain rows too. Everyone can hear each other, decisions are made by shouting across the boat, and the captain’s own strength matters a lot. On a large ship, the captain doesn’t row at all. They set the course, choose the crew, check the instruments and make sure hundreds of people work together. Same title. Completely different job.

The business grows, the job changes

In the early years, the entrepreneur is the best rower: selling, delivering, solving. As the business grows to ten, twenty, fifty people, the job changes underneath them, often without anyone noticing. Suddenly, the entrepreneur’s main job is no longer rowing. It is steering a ship.

Many entrepreneurs keep rowing. They stay in the details, solve every problem, and wonder why the ship moves slowly.

What research tells us

Noam Wasserman found in his study of 212 start-ups that most founders eventually give up the CEO role, about half within three years.¹ Often the company outgrows the way the founder leads. The founders who stay in charge are usually those who manage to change their own role as the company grows.

Linda Hill’s research on new managers shows how hard such a change is. People moving into leadership often underestimate how much their identity has to change: from doing the work to getting work done through others.²

What changes in the transition

• From doing to designing: building how work gets done.
• From knowing everything to trusting others: you no longer see every detail.
• From individual results to team results: your success is your team’s success.
• From quick decisions to clear processes: decisions need a rhythm, not just a gut feeling.
• From being liked by everyone to being clear with everyone.

Making the transition on purpose

Name it. Acknowledge that your job is changing. That alone reduces frustration.

Build a leadership team. People who can each steer part of the ship.

Learn the new skills. Coaching, communicating direction, decision processes. Google’s research found that great managers coach, empower and communicate clearly.³

Get outside support. A mentor or thinking partner who has seen this transition many times can save you years.

Decide what you want. Some founders realise they prefer rowing. That is a valid choice, but it should be a choice, not an accident.

What this means for you this week

• Write down how much of your week is rowing and how much is steering.
• Identify the two areas where you are still the best rower but shouldn’t be rowing.
• Talk to someone who has made this transition.
• Ask yourself honestly: do I want to captain the ship?

The boat became a ship. The captain’s job changed with it.

Sources

1. Wasserman, N. (2008). The Founder’s Dilemma. Harvard Business Review, February 2008. hbr.orgStudy of 212 start-ups: most founders give up the CEO role, about half within three years, and face a trade-off between control and value.
2. Hill, L. A. (2007). Becoming the Boss. Harvard Business Review. hbr.orgNew managers underestimate how much their identity has to change: from doing the work to getting work done through others.
3. Google re:Work. Following the data: The research behind great managers (Project Oxygen). rework.withgoogle.comBehaviours of Google’s most effective managers: coaching, empowering, communicating, a clear vision; technical skill is only one of them.