A business without a leader
Change management is always a stress for the company, and the departure of the charismatic leader to survive even harder. The company’s shares can lose in value, loyal employees will refuse to accept a new leader, and consumers will lose interest. “Where “cement” was a personal participation or personal influence of the head, most likely will be the first “cracks”” — warns Oksana Morina, managing partner of RosExpert consulting company.
Employees can take care of the charismatic leader as a personal tragedy that happened in “Magnet”. After the founder and major shareholder Sergei Galitsky has sold almost all its stake in the company (29,1%), VTB and resigned as Director General, to carry it out, the entire Central office “Magnit” in Krasnodar. The Galician, who, incidentally, served in the army, raised within the company an army of loyal, responsible and disciplined employees. They were truly loyal to the founder. Affects it, in particular local specifics — “Magnet” was created in Krasnodar, working there for the most part people from the Krasnodar region, which grew together with the company. But the army, the authoritarian approach has a downside: lack of initiative, lack of flexibility, lack of entrepreneurial thinking among staff. Such employees find it difficult to adapt to new realities. Moreover, they can resist.
Mask — a tough Manager: he’s forcing their employees to work 70-80 hours a week and to put corporate interests above their own, as, indeed, does he. Therefore, some experts are convinced that his departure may be a positive factor, but only in the short term. “Working with such a leader-Messiah, he always gushes ideas, demanding the impossible, wanting to get everything at once. After his departure, all the key leaders and line staff take a moment to enjoy the ensuing peace,” said Olga sabinina, partner Kontakt (InterSearch Russia).
In 2005, jobs admitted that his dismissal was the best thing that could happen at that moment.
The charismatic leader Steve jobs made Apple employees to work hard. And when in company it is difficult times, sharply reduced sales — seems to have completely lost control of himself and forced his subordinates to go to the trick. He ordered on unsold computers “line” Lisa install Macintosh emulation and sell in the market under the brand name Macintosh XL. After that, a few leading developers left Apple.
The difficult situation of corporations has aggravated the power struggle that was fought between jobs and the Board of Directors. Eventually a charismatic leader was fired, the staff exhaled, the company’s business began to improve — albeit briefly. “Over time, the situation is changing: people are getting bored, because without ideological mastermind, they do not feel belonging to something great, new, previously impossible. Best leave the company, the average will remain. In the end, the business may lose position, market opportunity and deflate like a balloon” — warns Olga sabinina.
At the meeting with the graduates of Stanford University in 2005, jobs admitted that his dismissal was the best thing that could happen at that moment. “I was able to get rid of the burden of responsibility, which is experiencing a successful person, and started with a clean slate: with that eagerness, which is inherent to every beginner. I was free — and included in one of the most creative periods of his life. <…> I’m sure none of this would have happened if I hadn’t been fired from Apple. The medicine was bitter, but to the patient it helped.” Back at company, Steve jobs saved it from bankruptcy, and a year later she began to make a profit. Apple, new products, and fans. “Bright leadership figure at the head of the business — a good driver of improving shareholder value. The question is — who will replace him and whether a new CEO to offer something in return, large-scale ideas Mask, — says Pavel Bezruchko, managing partner of ECOPSY Consulting. — However, if the court does not remove him from the leadership for life, I can imagine return in the style of Steve jobs”.
When the leader was so closely connected with the company, his departure will surely affect the mood of consumers. When jobs left his post at Apple because of illness, the company’s shares fell 7%. Fans of the product is not believed that the new operating officer Tim cook will be able to continue the work of Steve jobs. Some still believe that with the departure of Steve jobs the company never managed to produce anything innovative. But despite this, in 2018 the market value of Apple reached $1 trillion. Its products remains a cult: people stand in long queues, to buy the new iPhone, the cost of which can two times exceed their monthly income. The point here is not that Tim cook surpassed Steve jobs, but rather that did not break the system built by a charismatic leader.
Another example: the departure of Pavel Durov of “Vkontakte”. The young entrepreneur was forced to resign as CEO due to a conflict with investors. Then the company predicted almost closing. Many social network users have complained that they don’t like the updates that appeared on the website after the departure of “founding father”. But the project continues to live and remains one of the main competitors in the social network Facebook on the Russian market.
After leaving Chichvarkin brand “Euroset” was extinguished, and the market has changed.
To understand the mood of investors Tesla is quite real, says sabinina. She cites the example of his friend, the owner of the investment Fund, one of the shareholders of Tesla Motors and owner of Tesla electric cars: “After the incident he told me that sell your stock and see how events will develop further.” It is very significant that people who have invested money in Tesla, went straight for Elon Musk, because he believed in his passion and the talent of a trailblazer.
“When competitors see the word “Euroset”, they should understand that they ***er!” in this format, Evgeny Chichvarkin loved maintain a working correspondence with employees. While he ran the company, competitors were really sweet: in 2007, the “Euroset” was the most popular brand among mobile phone retailers, according to the research company “ROMIR”, at 74.7% of the respondents in the survey, without prompting (“spontaneous knowledge”) thought of the company. But after leaving Chichvarkin brand went out, and the market has changed. To replace cell retailers came operators with their point of sales equipment. The company was not able to fit into the new realities. Today 100% of the shares of Euroset belongs to MegaFon, and its 1800 outlets — JSC “VimpelCom” (brand “Beeline”). It is easy to imagine how competitors of the Tesla, and the question is whether the company can withstand their onslaught and to adapt to rapidly changing market conditions without the Mask.
Rebels in power
“Shareholders, particularly institutional investors — funds which, of course, want stability for their investments, are tired of the eccentric, Mask,” — says Roman Tyshkovsky, managing partner of Odgers Berndtson. The antics of the flamboyant leaders cause considerable damage to the image of the company, as it was in the history of Uber.
A few years ago in one interview, Travis Kalanick called the service “eskuara” (boob-er), because the success of the business made him the founder of the popular female. During the work shocking the top Manager of the company included in the ranking of Forbes, but was involved in several scandals in the corporate culture of Uber flourished sexism, discrimination, several employees accused of sexual harassment. In addition, the company suspected of stealing drawings of the drone at Google. All these incidents attracted the attention of the public and were the reason for the investigation. More than 20 employees were dismissed, and, finally, under pressure from shareholders the left Kalanick of Uber. A year has passed since his departure, but the company failed to restore the reputation. In summer, the sources familiar with the plans, the company argued that Uber spend $500 on an advertising campaign to restore the image.
The current market capitalization of Tesla is largely due the credit of trust given to Elon musk.
After Musk smoked marijuana in the broadcast of the popular show, and in an interview with New York Times admitted that because of the hard schedule and fatigue, he started to have health problems, investors and Board of Directors seriously questioned his ability to keep the situation under control. Tesla has repeatedly been the verge of bankruptcy and was only saved by new rounds of funding. The current market capitalization of Tesla is largely due the credit of trust given to Elon musk. A series of recent events has shown that this loan is no more. The actions of the founder sent Tesla stock into a prolonged decline.
“The problem is that this dismissal brings more instability: no information on who will come in place of the Mask and how the new head will work,” — says Roman Tyshkovsky. To the shareholders of the company faces a difficult question: where to look for an alternative Mask. It is doubtful that someone will be able to replace this role, I am convinced Bezruchko: “moreover, the successor would be making a mistake if they try to do it (it will always compare, and it will play in comparison). The Musk can do a lot to mitigate the negative effects from this situation is to talk with key staff to help the new CEO. But I have no confidence that he will act that way and not throw out another eccentric focus”.