The image of the lone wolf founder, fiercely clinging to the CEO title and corner office, is deeply embedded in our entrepreneurial narratives. From Zuckerberg to Dangote, we celebrate these visionary leaders who built empires from scratch. But what if that's not the only, or even the best, path to success, especially in the dynamic landscapes of Africa and beyond? Here's why not every founder needs to be – or even wants to be – CEO:
Different Hats, Different Journeys
Building a scrappy startup and leading a mature company often require distinct skill sets, like comparing apples and oranges. Founders typically excel at innovation, risk-taking, and navigating ambiguity, all crucial for launching something new. But scaling a company often demands expertise in operational efficiency, talent management, and complex organizational structures. These might not be a founder's comfort zone.
Take Interswitch, the Nigerian payments giant. Founder Mitchell Elegbe realized early on that his strengths lay in product development and strategic vision. Recognizing the need for operational expertise as the company scaled, he brought in experienced CEOs like Bola Asiru and Cherry Eromobor, allowing him to focus on long-term strategy while the company thrived under strong operational leadership.
Breaking Free from Founder-Centricity
A founder's initial vision needs to evolve and adapt as companies mature. Clinging tightly to the reins can stifle innovation and growth. This is evident in Jumia, the African e-commerce giant. While founder Sacha Poignonnec played a crucial role in launching the company, stepping down as CEO in 2019 allowed Jumia to attract talent with diverse experience and fresh perspectives. This move coincided with a renewed focus on profitability and regional expansion, propelling the company forward.
Stepping Back for Sustainability
Building a company is a marathon, not a sprint, and founders often wear multiple hats, facing immense pressure and stepping back as CEO allows them to focus on areas they truly enjoy and excel in, whether it's product development, strategic partnerships, or mentorship. This can prevent burnout and lead to a more sustainable long-term vision for the company.
In South Africa, Takealot founder Jonathan Berman stepped down as CEO in 2019, citing the need to recharge and explore other interests. This move allowed him to return to the company later as Chairman, refreshed and ready to contribute strategically while empowering a new CEO to tackle day-to-day operations.
Beyond Founder Aura
A strong CEO with a proven track record can attract top talent that wouldn't have considered a founder-led company. This talent infusion can bring invaluable expertise and diverse perspectives, further propelling the company's growth.
Consider Flutterwave, the Nigerian fintech giant. Founder Iyinoluwa Aboyede recognized the need for a seasoned CEO to attract top talent and navigate complex financial regulations. He brought in Greg Ogbewelie, a former Barclays executive, whose experience helped scale the company and attract top talent, propelling it to unicorn status.
Objectivity Over Emotion
As a founder, emotions are naturally intertwined with the company. This can make it difficult to make tough decisions that might be necessary for long-term success. A CEO with a more objective perspective can guide the company through challenging times and make decisions that benefit the organization as a whole.
In Kenya, Safaricom founder Michael Joseph stepped down as CEO in 2000, paving the way for Michael Collinson. This move allowed Joseph to focus on broader industry initiatives. At the same time, Collinson, with his operational expertise, led Safaricom through a period of explosive growth, solidifying its dominance in the Kenyan telecom market.
The Right Fit, Not the Stereotype:
Remember, this is not a "one-size-fits-all" approach. Some founders, like Elon Musk, possess the skills and desire to wear the CEO hat long-term. The key is for founders to honestly assess their strengths and weaknesses, and the needs of their company, to make the best decision for everyone involved.
So, the next time you hear the "founder-CEO" story, remember: there's another side to the coin. Stepping back from the CEO role can be a bold, strategic move that unlocks the company's true potential and paves the way for long-term success. After all, the best leaders know when to lead from the front, and when to step aside and empower others to take the reins.
This model can be applied across diverse contexts, from the bustling tech hubs of Lagos and Nairobi to the established markets of Europe and America. Ultimately, it's about recognizing that **stepping back can be the ultimate act of leadership, ensuring the company's success.
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