What do startup companies need?

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  • Clearly a jerk who is also a weak leader will never succeed, so we don’t have to talk about this unfortunate character.
  • A “good gal” who is a weak leader will have limited success. She may attract a few good employees who want to help her succeed, but startups have so little room for error that the lack of decision making and accountability will doom the company. She will end up “liked” but not “respected.”
  • But the “jerk” who is also a strong leader *can* succeed. It is true that he will leave a trail of wreckage in his wake: disgruntled ex-employees, a highly political culture, and good people whose opinions aren’t being heard. But being strong and decisive is so crucial to a startup, and those skills are in such short supply, that “jerks” often can succeed, especially in the short term.
  • However, I’d argue that the “good gal” who is also a “strong” leader is the most effective CEO of all. I have worked for a few of these people: they manage to build a great team and get the most out of them. But they are also willing to take difficult actions and make tough decisions. This is the killer combination.

So why do we keep seeing “jerk” behavior at our companies? I argue that many of the traits that “good guys” share can be at odds with being “strong”:

  • A manager who is sympathetic and cares about people might find it tougher to fire or demote someone.
  • A manager who likes to consider all viewpoints and build consensus may take too long to make a decision.
  • A manager who has the humility to be aware of his own weaknesses may hesitate or flip-flop on decisions since he is well aware that he doesn’t have any superpowers that guarantee the decisions will turn out to be correct.

“Jerks” are often not burdened by self-doubt or even self-awareness. They can plow straight ahead without getting bogged down in considering others’ feelings or opinions. Some evidence even exists that the lack of guilt and remorse that characterizes clinically-diagnosed psychopaths can actually be advantageous to those in the CEO role:

Although other studies have shown that “good guy” CEOs who obtain a high degree of empathy for other people also make excellent leaders, but they must be ready to suffer a guilt-ridden existence:

The net here is that you need to learn to be a tough leader who makes tough decisions, but couple that with strong empathy and compassion makes a potent combination.

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What is startup company?

A startup company is a business with a limited operating history. While slow-growth businesses may be startups, investors are most attracted to those new companies distinguished by their risk/reward profile and scalability. That is, they have lower costs, higher risk, and higher potential return on ...