This is a very interesting post Jay! I agree that markets conditions and customer preferences evolve continuously and that founders are likely to have a very good intuition of what’s needed in the market. However, they have to prove their intuition by actually making money. If the founders are making enough money and growing, I don’t think VCs would want to replace them with someone else.
The challenge arises when the founders are not able to make money or grow the company. From a VC’s perspective, there are only so many chances they are willing to give a founder during those times. If founders keep going back to investors with an ‘evolved’ intuition every year without showing growth or profits, that’s when investors start to worry.
Great post Nancy! I have personally seen both sides of this happening. In my previous job, when the company was going through times, some people (who were quite good) quit. When I asked the people who stayed, loyalty was the most important reason. We thought of the company and our colleagues as family.
I also think loyalty can go a bit too far. For example, in my previous experience, there have been instances when some people were just not doing their job right, especially in certain critical situations. When there is too much loyalty both ways, the underperforming colleague may be given too many chances and not let go. Loyalty can sometimes prevent people from making these tough decisions.
People should understand that along with loyalty comes responsibility, accountability, meritocracy and other aspects of a company’s culture. It can then be a powerful combination indeed. Thanks for this!