Not a disease related to the foot, founderitis—also known as founder’s syndrome—can be a fatal ailment for any promising company
In the dynamic world of business, there can sometimes be a peril that may go unnoticed until it’s too late. Founderitis, or founder’s syndrome, stems from a tendency of founders to allow their egos and desires for legacy to outweigh the prosperity of their companies, as well as the well-being and output of their employees.
This issue commonly arises in startup environments, particularly after a company experiences rapid growth. Founders, initially integral to every decision and process, are now struggling to relinquish power and adapt their organisational processes, hierarchy and goals to the new normal.
There are many symptoms of founderitis, some of which include autocratic decision-making, obsessive micromanagement, paranoia, cronyism and the inability to trust hired specialists if their opinions contradict the founder’s—even if the founder lacks expertise in that field.
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Though founderitis can—and has—emerged as a problem within every company type, cases have been especially prevalent in the world of non-profit organisations, where founders begin to see themselves as saviour figures. When an individual appears to overshadow the founder’s public persona and threatens to take over their perceived role as a “world saviour”, the resulting reaction by the founder is to undermine or eliminate this person.
One study revealed that 70 percent of respondents perceived founders as overly possessive of their organisations. A notable example is WeWork co-founder and former CEO Adam Neumann, who faced criticism for his disproportionate control, where each of his shares carried 20 board votes compared to the usual 10 for someone in that role.
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Other research indicated that only 45.6 percent of founder-led companies held monthly meetings, compared to 60.3 percent in companies led by non-founders, hinting at a potential lack of transparency and collaboration in founder-led organisations.
Dr Noam Wasserman, a longtime Harvard Business School professor, posited that the dilemma founders face is being “rich” and seeing the company thrive or being “a king” and maintaining absolute control. He believes that these are diametrically opposed.
