The Founder's Mentality: How to Overcome the Predictable Crises of Growth
May 2016 · Harvard Business Review Press
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A Washington Post Bestseller
Three Principles for Managing—and Avoiding—the Problems of Growth
Why is profitable growth so hard to achieve and sustain? Most executives manage their companies as if the solution to that problem lies in the external environment: find an attractive market, formulate the right strategy, win new customers.
But when Bain & Company’s Chris Zook and James Allen, authors of the bestselling Profit from the Core, researched this question, they found that when companies fail to achieve their growth targets, 90 percent of the time the root causes are internal, not external—increasing distance from the front lines, loss of accountability, proliferating processes and bureaucracy, to name only a few. What’s more, companies experience a set of predictable internal crises, at predictable stages, as they grow. Even for healthy companies, these crises, if not managed properly, stifle the ability to grow further—and can actively lead to decline.
The key insight from Zook and Allen’s research is that managing these choke points requires a “founder’s mentality”—behaviors typically embodied by a bold, ambitious founder—to restore speed, focus, and connection to customers:
• An insurgent’s clear mission and purpose
• An unambiguous owner mindset
• A relentless obsession with the front line
Based on the authors’ decade-long study of companies in more than forty countries, The Founder’s Mentality demonstrates the strong relationship between these three traits in companies of all kinds—not just start-ups—and their ability to sustain performance. Through rich analysis and inspiring examples, this book shows how any leader—not only a founder—can instill and leverage a founder’s mentality throughout their organization and find lasting, profitable growth.
Three Principles for Managing—and Avoiding—the Problems of Growth
Why is profitable growth so hard to achieve and sustain? Most executives manage their companies as if the solution to that problem lies in the external environment: find an attractive market, formulate the right strategy, win new customers.
But when Bain & Company’s Chris Zook and James Allen, authors of the bestselling Profit from the Core, researched this question, they found that when companies fail to achieve their growth targets, 90 percent of the time the root causes are internal, not external—increasing distance from the front lines, loss of accountability, proliferating processes and bureaucracy, to name only a few. What’s more, companies experience a set of predictable internal crises, at predictable stages, as they grow. Even for healthy companies, these crises, if not managed properly, stifle the ability to grow further—and can actively lead to decline.
The key insight from Zook and Allen’s research is that managing these choke points requires a “founder’s mentality”—behaviors typically embodied by a bold, ambitious founder—to restore speed, focus, and connection to customers:
• An insurgent’s clear mission and purpose
• An unambiguous owner mindset
• A relentless obsession with the front line
Based on the authors’ decade-long study of companies in more than forty countries, The Founder’s Mentality demonstrates the strong relationship between these three traits in companies of all kinds—not just start-ups—and their ability to sustain performance. Through rich analysis and inspiring examples, this book shows how any leader—not only a founder—can instill and leverage a founder’s mentality throughout their organization and find lasting, profitable growth.
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Chris Zook is a partner at Bain & Company and has been co-head of the firm’s Global Strategy practice for twenty years. He is based in Boston and Amsterdam and specializes in helping companies find new sources of profitable growth.
James Allen is a partner in Bain’s London office. Co-head of the firm’s Global Strategy practice, he is founder of the Bain Founder’s Mentality 100, a global network of high-growth companies.
Zook and Allen are the authors of five bestselling books on strategy, including Profit from the Core.
James Allen is a partner in Bain’s London office. Co-head of the firm’s Global Strategy practice, he is founder of the Bain Founder’s Mentality 100, a global network of high-growth companies.
Zook and Allen are the authors of five bestselling books on strategy, including Profit from the Core.
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