A close friend shared this with me. It’s a well-written Harvard Business Review article that explores the relationship between financial gains and control of a company. The article basically says that when founders maintain control of their company, the company is less likely to reach its full financial potential. When founders cede control to board members, key employees, etc., the company is more likely to do so.
This is an interesting article. When I was a founder, I fell into the camp that doesn’t want to cede control early on. But when I did empower other leaders, my company flourished.
This article makes salient points. The relationship between a company reaching its full potential (financial or otherwise) and founder control is very real. It’s something early founders should be aware of. If founders want to build a large company, they’ll probably have to get comfortable with relinquishing control. It’s not possible to control every part of a sprawling organization without stunting its growth.