The Growth Journey of a Founder CEO: “The Shadow of a Leader”
In the early stages of a company, Founder CEOs are closer to peers than bosses. Everyone is working around the clock to make the business work. Relationships are often personal and somewhat informal.
As the company grows, new employees join the company and the structure becomes more hierarchical – and there is more distance between the CEO and front line employees. While Founder CEOs no longer have the same relationships and proximity to these employees, they are still the same people – with the same values, personality, and tendencies.
But … and this is a huge “but” … while CEOs may be the same people as their companies grow, they are not seen the same. They are placed on a higher pedestal, and their actions and statements are more impactful.
Founder CEOs recognize the importance of what they say and do in town halls, and most choose their words and tone carefully. Outside of those ‘official’ meetings, however, most CEOs aren’t as deliberate with what they say and do – mostly because they don’t realize how impactful even the shortest comment or slightest action can be. In their head, they’re still just one of the team.
CEOs cast a “shadow” - whether intentional or not. Their actions have an outsized impact on how employees act, think, and feel – about themselves, the CEO, and the company. The higher the level of the leader, the longer the leader’s shadow.
A common example:
Tom, the Founder and CEO of a fast-paced health-tech company, recently received “horrible” feedback during an organizational assessment. Employees also referred to him as “being detached” and “feeling he was too important to hang out with employees.” The assessment feedback went further, saying the company went back on its word, played favorites, and didn’t have a clear direction.
Tom was confused and devastated. He respected their feedback, but he couldn’t think of anything he had done that could possibly have led to people being this upset. He was defensive because Tom prided himself on the culture and taking care of employees. He saw himself as ‘one of them,’ and loved spending time with employees.
As Tom digested the feedback, he asked his leadership team and several employees for examples. They rattled off numerous things he had done and said:
stopped going to happy hours;
made promises and later claimed he didn’t remember;
made changes that managers contradicted;
and was constantly on vacation.
As they gave specific examples, Tom was surprised and defensive. None of the things they were referring to had anything to do with the meaning they attached to them:
Tom quit going to happy hours because the company was bigger and he didn’t think employees would have fun if the CEO was there. But he missed them.
Tom didn’t remember most of the examples of “promises” and “changes” he made. The statements he did recall were just off-the-cuff comments made to one or two employees in the moment. It never crossed his mind anyone would take them as fact or share them across the company.
The perception he was always on vacation really stung. Tom was constantly out of the office for business development and to meet with potential investors.
Tom found out the hard way that he was under a bright spotlight and what he said, did, didn’t say, and didn’t do – were remembered and employees attached meanings to all of them.
As a CEO, you can’t stop from casting a shadow, but the type of shadow you cast is within our control. Being aware of your shadow is the first step in managing it.
If PeopleCap can help you explore your shadow or navigate an impact your shadow is having, let’s find a time to talk. Click here to schedule a time.
