The elements of Founder’s Mentality: Aversion to bureaucracy

FM-Wheel-Owner-mindset-aversion-220x207This is the last of nine blog posts examining the elements of Founder’s Mentality: Insurgency, frontline obsession and owner mindset. Here, we look at aversion to bureaucracy, one of the sub-elements of owner mindset.

It is appropriate that we close our recent series of posts on the elements of Founder’s Mentality by examining the aversion to bureaucracy because celebrating the heroes in your company who fight bureaucracy every day is essential to maintaining Founder’s Mentality. Continue reading

The elements of Founder’s Mentality: Bias for action

FM-Wheel-Owner-mindset-bias-for-action-220x207This is the eighth of nine blog posts examining the elements of Founder’s Mentality: Insurgency, frontline obsession and owner mindset. Here, we look at bias for action, one of the sub-elements of owner mindset.

In companies with high Founder’s Mentality, the heroes are the people who act. They don’t shy away from conflict—nor do they allow themselves to be bogged down in conflicts. They won’t tolerate a bureaucratic answer, especially if it means a customer is kept waiting. Continue reading

The elements of Founder’s Mentality: Strong cash focus

FM-Wheel-Owner-mindset-strong-cash-focus-220x207This is the seventh of nine blog posts examining the elements of Founder’s Mentality: Insurgency, frontline obsession and owner mindset. Here, we look at strong cash focus, one of the sub-elements of owner mindset.

Incumbent companies tend to lose faith over time in cost control. Instead of lowering sales, general and administrative (SG&A) costs as a percentage of sales, for instance, they are content to allow them to grow at the rate of sales growth. They ignore the value of continuously reducing costs and passing the benefit along to customers.

This doesn’t happen at companies with high Founder’s Mentality—companies we define as having an extraordinary sense of insurgency, a frontline obsession and an owner mindset, each of which have their own sub-elements (see figure below). The last of these elements, owner mindset, provides some of the most important antibodies to complexity, creating a culture that ruthlessly cuts costs and complexity and rewards those who act to overcome and destroy bureaucracy whenever it rears its head. Continue reading