Founding CEOs Drive Innovation

Posted by Guillermo Mazier on Apr 29, 2010 3:52:58 AM

I came across this interesting article--regarding how companies with founding CEOs (vs. those with professional CEOs that took over from the founder) tend to be innovators.

"The technology business is fundamentally the innovation business. Etymologically, the word technology means “a better way of doing things.” As a result, innovation is the core competency for technology companies. Technology companies are born because they create a better way of doing things. Eventually, someone else will come up with a better way. Therefore, if a technology company ceases to innovate, it will die.

These innovations are product cycles. Professional CEOs are effective at maximizing, but not finding, product cycles. Conversely, founding CEOs are excellent at finding, but not maximizing, product cycles. Our experience shows—and the data supports—that teaching a founding CEO how to maximize the product cycle is easier than teaching the professional CEO how to find the new product cycle.

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