Founder-Led Firms Do Better
(p. A19) A study out earlier this year from Bain & Company, where we work, shows that over the past 15 years founder-led companies delivered shareholder returns that are three times higher than those of other S&P 500 companies.
. . .
Great founders imbue their companies with three measurable traits that make up what we dubbed "the founder's mentality."
The first is insurgency: The founding team declares war on its industry on behalf of underserved customers.
. . .
The second trait is an obsession with how customers are treated--an attention to detail that borders on compulsive.
. . .
Third, these companies are steeped in an owner's mind-set. Too often in business, the founder's vision becomes distorted.
Bain's research found that the best companies--the top 20% of performers, founder-led or not--exhibit the three traits we've described four or five times as often as the bottom performers. The bad news: Only about 7% of companies, founder-led or not, manage to maintain these traits as they grow to scale. Yet those that do create more than 50% of the net value in the stock market in any given year.
For the full commentary, see:
(Note: ellipses added.)
(Note: the online version of the commentary has the date Dec. 18, 2016.)
The Bain research mentioned above, is:
The passages quoted above are related to the authors' book:
Zook, Chris, and James Allen. The Founder's Mentality: How to Overcome the Predictable Crises of Growth. Boston, MA: Harvard Business Review Press Books, 2016.