You’ll never see it mentioned in the AMA Journal or chatted about in online platforms. Many who suffer from it may not even know they have it. But this disease can stifle initiative, send good employees elsewhere, and ultimately stagnate growth.
 
It’s called Founder’s Syndrome.
 
Companies can develop Founder’s Syndrome when the founder (or founders), who battled against the odds to build a business, eventually becomes its biggest constraint to growth. Wikipedia describes Founder’s Syndrome as “The difficulty faced by organizations…where one or more founders maintain disproportionate power and influence following the effective initial establishment of the organization, leading to a wide range of problems.”
 
What are the symptoms of Founder’s Syndrome?

• The founder resists change and struggles to adapt to the business’ evolution.
• The founder is at the center of all the organization’s decision-making.
• The founder has difficulty delegating and micromanages all aspects of the business.
• There is no succession plan.

 
Not only is Founder’s Syndrome an impediment to growth; it reduces the value of the business because so much of the business’ institutional know-how and reputation lies with the founder (due to a reluctance to delegate). This “disease” is a deterrent to attracting top talent, as potential employees may be discouraged by the founder’s lack of delegation.
 
Founder’s Syndrome imperils the company’s future. If and when the business goes on the market, potential buyers will recognize very little value exists outside of the founder. The founder also may be afraid of passing the baton to the organization’s next generation because s/he may fear the new leadership team will change everything s/he worked so hard to create. With little market value or realistic leadership transition, the business often ends up closing its doors and dissolving.
 
There is a way to treat this condition!
 
If you suspect that you might have Founder’s Syndrome (even a light case!), here is a prescription:
 

• First, return to your mission and vision. Remind yourself why you started your company.
• Clarify the roles and responsibilities of your staff so everyone knows what they’re responsible and accountable for. This includes you.
• Establish checks and balances so one person doesn’t hold all the power and responsibility.
• Once you have communicated responsibilities and established a strong system of checks and balances to ensure nothing falls through the cracks, delegate!
• Finally, embrace your new culture. If you’ve done things right, you might feel as if you’re working in a different company, and that’s a good thing. 

 
Battling Founder’s Syndrome can be daunting, but you don’t have to do it alone. Hiring a strong second-in-command to coach you through the process and manage your business when you are not there will not only alleviate Founder’s Syndrome but will give you time to focus on what you enjoy doing and on those functions that grow your business. 
 
Shifting from an owner to an executive will take your business to another level and give you more opportunity to sell, retire, or end it on your terms when you are ready.