Need for New Leadership

Theresia Gouw

12.22.20

What happens when someone is beyond help? One of the more difficult aspects of VC is when the investors have to "make changes" - a euphemism for bringing on new leadership.

Summary:

What happens when someone is beyond help? One of the more difficult aspects of VC is when the investors have to “make changes” – a euphemism for bringing on new leadership.

Thuy

Are there ever times, though, when you've tried to help someone course correct, but it's just not happening. And how do you know perhaps when someone is beyond help and it's time to move on?
Theresia_Gouw

Theresia Gouw

You know, unfortunately, that is true. Sometimes leaders are the right leaders for Phase A to B, but not from phase C to D, and we need to make changes, I think, in the best of circumstances, and most great leaders do this is they identify what they're missing and they actually see through some conversation. They actually seek to bring new leadership on board and not that they go away, but that this other person, you know, takes over the functions or the part of the organization that they are now struggling with because it's scaled beyond their comfort level, prior experience, whatever you want to say. Sometimes that is finding their number two. But the harder one is when it's actually replacing themselves as the CEO and they move into a head of product role or a head of whatever their go-to strength is. Right. But you're right. Sometimes you have those conversations and even when they see that this is missing or that's missing or the company could grow faster, better with that. Some people are more focused on their personal responsibility and their title, even when they intellectually can understand that it's better for the company, and I think those are the really hard ones. And those are the times when, you know, that's why we sometimes are you know, it's not just that they, I don't say it's the dark side for a reason when you do have to, as board members, make that call to make a change.