3.17.3. The Right to Veto
In 1985, Apple’s founder Steve Jobs was forced to leave the company due to conflicts with its management. After his departure, Apple faced significant challenges such as financial losses, unsuccessful product launches, and declining market share. It wasn’t until Jobs returned in 1997 that Apple began to recover. He streamlined the product line, focused on innovation, and launched iconic products like the iMac, iPod, iPhone, and iPad, which restored Apple as an industry leader and set it on a path of sustainable growth.
Similar situations have occurred in other companies after their founders left:
Starbucks: After Howard Schultz stepped down, the company rapidly expanded but lost focus on quality. This led to declining sales and a crisis, which Schultz resolved upon his return by implementing necessary reforms.
Dell: Following Michael Dell’s resignation, the company lost market position and faced fierce competition. Dell’s return and reorganization restored the company’s profitability.
Yahoo: After Jerry Yang left, Yahoo lost its market leadership and couldn’t compete with Google. This ultimately led to its acquisition by Verizon and the loss of its independence.
Uber: The departure of founder Travis Kalanick triggered a corporate culture crisis and the loss of an aggressive growth strategy. While new CEO Dara Khosrowshahi stabilized the company, Uber no longer exhibits the same growth dynamics.
These examples highlight that founders often play a unique role that extends beyond traditional leadership. Their vision, innovation, and deep understanding of company culture can be critical to business success. When founders leave, especially during critical stages, companies may lose focus, their spirit of innovation, and organizational culture, leading to management difficulties and reduced competitiveness.
The right to veto enables a founder to protect their vision and the project’s values from the pressures of external investors and market forces. This mechanism ensures the preservation of a long-term strategy centered on innovation while preventing short-term changes that could undermine the company’s uniqueness and culture. This is particularly important for technology and innovation-driven companies, where strategies often prioritize long-term growth and the maintenance of brand identity.
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