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If you read much of the business press, you're aware that there are two competing theories about what makes a great business leader. One theory says the leaders should be extremely aggressive psychopaths who crush all their competition. For an example of this theory, you can read almost any biography about Steve Jobs. The second theory says that humble, egoless leaders build the most successful companies, because they do the best job facilitating cooperation and communication. James Collins, in his book Good to Great, makes this case about several leaders, including Darwin E. Smith of the paper company Kimberly-Clark.
Nonetheless, we can find examples of both types of leaders succeeding. Steve Jobs was successful. So was Darwin E. Smith. Is there any way to reconcile the conflicting theories? I believe there is: simply assume that the most important quality any business leader can have is the willingness to quickly fire weak players. Therefore ruthless psychopaths damage their businesses with their pathology, but then make up for it by firing people quickly. And humble, egoless leaders help their companies with their healthy attitudes, but then undermine the business by being too slow to fire weak players.
Humble, egoless leadership, ready to fire fast — that is a rare combination. I would say that Andy Grove of Intel had that combination of traits. And of course, there is Ray Kroc of McDonald's. Due to some people's aversion to the food sold at McDonald's, the sheer brilliance of Kroc's entrepreneurship often goes unsung. But he was willing to take a risk on complete unknowns, most notably on June Martino, one of the all-time great hires in the history of USA business. At the same time, Kroc was willing to fire anyone who didn’t work out. That combination of willingness to take risks on unknowns and quickly fire any mistakes is something to which all business leaders should aspire.
How to spread awareness of what is needed in the leadership of startups?
Recently, I exchanged some email with my friend Colin Steele (currently CTO of TypeZero and formerly CTO of RoomKey.com). We discussed another startup that had failed, and he wrote:
"It's sad and disheartening. I think few people understand how amazingly difficult it is to start a new business, and run it successfully. Drama, people, and personalities, seem to have an outsized role in how these things crash and burn. There needs to be some codification of best internal practices for creating startups, like Steve Blank's book “4 Steps To The Epiphany,” but for the culture; a co-routine that runs alongside "customer development" – call it "culture development" or something."
https://www.amazon.com/Destroy-Tech-Startup-Three-Steps-eboo...