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First client
                                 Young girl
                                 R




©Ichak Adizes, Ph.D. 1971-2012
©Ichak Adizes, Ph.D. 1971-2012
Kongo Gumi
     Construction/Osaka, Japan
    Founded: 578 40th generation

©Ichak Adizes, Ph.D. 1971-2012
Masakazu Kongo

  Flexibility in selecting leaders
  Health, responsibility, talent for the job.
  Not always a son.
  Sons-in-law taking the family name

2007


                ©Ichak Adizes, Ph.D. 1971-2012
Hoshi Ryokan
 Innkeeping/Komatsu, Japan

 Founded: 718

 46th generation

 Hotel for 450 people in 100
 rooms.

 Zengoro Hoshi is the current
 patriarch.
                     ©Ichak Adizes, Ph.D. 1971-2012
Fabbrica D' Armi
Pietro Beretta
S.p.A.

Firearms, 1526
Brescia Italy


         ©Ichak Adizes, Ph.D. 1971-2012
Kombinat im. Stepana
   Razina - 1795




                                                Kamenskaja
                                                Paper-Board
                                                 Mill - 1799


               ©Ichak Adizes, Ph.D. 1971-2012
FLEXIBILITY                CONTROLLABILITY

HIGH




LOW      PRIME

        DEVELOPING                 AGING
          ©Ichak Adizes, Ph.D. 1971-2012
©Ichak Adizes, Ph.D. 1971-2012
Go-go
                     Founder Trap




    growing aging
        ©Ichak Adizes, Ph.D. 1971-2012
Go-go Phase Problems
Normal Problems
                                                   8 companies
  See endless opportunities
  A messy organization chart. Organized around
people, not functions.
  Flexible direction
  Centralized leadership delegating tasks but not
responsibility
  Lots of drive
  Too many priorities
  Equate more sales with success
                  ©Ichak Adizes, Ph.D. 1971-2012
Go-go Phase Problems

Abnormal Problems

  Arrogance
  No responsibilities assigned
  No reaction to change in direction
  No decision-making outside the leader or core
group
  Decisions are reversed by the leader


                 ©Ichak Adizes, Ph.D. 1971-2012
Mergers and acquisitions
                                  Stable

                    Prime                              Aristocracy

      Adolescence                                         Early Bureaucracy
            Go-go

     Infancy                                                   Bureaucracy

Courtship                                                            Death


               growing                    aging
                      ©Ichak Adizes, Ph.D. 1971-2012
Their solutions

     "Where did IIdeal IS loser?"
                  find this
  "He is good, executive director
          Ideal but for a son-in-law."
 “Everyone wants to be Cary fishing,
 "He is good, but to take him   Grant.
    Evena want to be Cary Grant”
   to put I worm on a fishing hook."
              Cary Grant.



              ©Ichak Adizes, Ph.D. 1971-2012
What they say
   I throw away to them, they cannot
    even see not to mention to catch

  They slowly adapt to sudden changes
       of organizational structure

    When I wake up at 2am I do not
        have anybody to call


              ©Ichak Adizes, Ph.D. 1971-2012
What they get

     I do not talk on profit but to stay
   normal, otherwise I do not nee profit

  This is not just your toy, 1000 families
  depend on it and earn their living in it




               ©Ichak Adizes, Ph.D. 1971-2012
Strategy
Structure
Style
Staffing
Plans & Goals
Rewards
        ©Ichak Adizes, Ph.D. 1971-2012
Strategy
From market share to profitability
Focus on core capabilities
Identify what not to do
State values
Opportunity driven
                                                 Go-go
                                                         Founder’s
                                                         Trap




                     ©Ichak Adizes, Ph.D. 1971-2012
Structure
Build accountability
Create borders between the founder and the
  company
Structure around assignments and not
  people
Teach to play positions
                                                   Go-go
Build a Board with outsiders                               Founder’s
                                                           Trap

Avoid small companies
Build profit centers
                       ©Ichak Adizes, Ph.D. 1971-2012
Short run




Short run   Short run           Long run                  Short run    Short run

Sales       R&D                  Strategic                Finance       Personal
Marketing   Production           planning                 Accounting    HRD




                         ©Ichak Adizes, Ph.D. 1971-2012
General manager




    An organization shouldMarketing Finance HRD
   Administration  PC Director R&D
                                   be structured
                                    Long run
   by a genius, so that any idiot can run it.
Accounting   Personal   Sales      Production
      Rather then strcutred by an idiot –
    Short run       Short run
              so just a genius can run it.

                                ©Ichak Adizes, Ph.D. 1971-2012
Style
Mutual trust and respect by example
Build a complimentary team of P&A
Avoid the trap of “I am the Company”
Differentiate between personal and
  corporation
Delegation without abdication                  Go-go
                                                       Founder’s
                                                       Trap




                   ©Ichak Adizes, Ph.D. 1971-2012
Staffing
Promote from within
Build A’s
Identify a COO
Professionalize the processes of
  management
                                               Go-go
                                                       Founder’s
                                                       Trap




                   ©Ichak Adizes, Ph.D. 1971-2012
Planning & Goals
Market share with minimum levels of
 profitability
Develop policies, procedures, standards



                                               Go-go
                                                       Founder’s
                                                       Trap




                   ©Ichak Adizes, Ph.D. 1971-2012
Rewards
Fixed, variable




                                              Go-go
                                                      Founder’s
                                                      Trap




                  ©Ichak Adizes, Ph.D. 1971-2012
XYZ

                               Marketing                (Development)

                               HRD                      Finance




                                                   Projects           Servis &
Purchasing     Objects         Trade                                  mainteinance     Support

   Warehouse     Objects 1           (Sales)           (Sales)           (Sales)         Accounting

                 Objects 2           (Inventory)       (Inventory)       (Inventory)     IT
   Transport
                                                       Preparation                       Quality
                 Obects 3
                                                                                         assurance
                                                       Projecting
                 (Montage)                                                               Administration
                 Sales

                 (Inventory)

                  Workshop 1

                  Workshop 2

                  (Planing)


                                     ©Ichak Adizes, Ph.D. 1971-2012
PROFIT
MISSION   STRUCTURE TRACKINGREWARDS
                    SYSTEM



          ACCOUNTABILITY


            ©Ichak Adizes, Ph.D. 1971-2012
Goal Can
                 Reward




Goal              Reward
        Can



                  Reward
Goal Can



   ©Ichak Adizes, Ph.D. 1971-2012
How not to getting old?




               (P A E i)

        (P A E i)

   (P A E i)




      ©Ichak Adizes, Ph.D. 1971-2012
E                                          E
   AAA                                        EEE
           Decentralization
  AAAAA                                      AAAAA
 AAAAAAA                                    AAAAAAA
PPPPPPPPP                         PPPPPPPPPP




           ©Ichak Adizes, Ph.D. 1971-2012
ORGANIZATIONAL FAMILY

                President of the Group




Infancy   Aristocracy          Prime             Adolescence   Go-go



          Uniformity will lead to Bureaucracy




                    ©Ichak Adizes, Ph.D. 1971-2012

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How to get out of Founder's trap

  • 1. First client Young girl R ©Ichak Adizes, Ph.D. 1971-2012
  • 3. Kongo Gumi Construction/Osaka, Japan Founded: 578 40th generation ©Ichak Adizes, Ph.D. 1971-2012
  • 4. Masakazu Kongo Flexibility in selecting leaders Health, responsibility, talent for the job. Not always a son. Sons-in-law taking the family name 2007 ©Ichak Adizes, Ph.D. 1971-2012
  • 5. Hoshi Ryokan Innkeeping/Komatsu, Japan Founded: 718 46th generation Hotel for 450 people in 100 rooms. Zengoro Hoshi is the current patriarch. ©Ichak Adizes, Ph.D. 1971-2012
  • 6. Fabbrica D' Armi Pietro Beretta S.p.A. Firearms, 1526 Brescia Italy ©Ichak Adizes, Ph.D. 1971-2012
  • 7. Kombinat im. Stepana Razina - 1795 Kamenskaja Paper-Board Mill - 1799 ©Ichak Adizes, Ph.D. 1971-2012
  • 8. FLEXIBILITY CONTROLLABILITY HIGH LOW PRIME DEVELOPING AGING ©Ichak Adizes, Ph.D. 1971-2012
  • 10. Go-go Founder Trap growing aging ©Ichak Adizes, Ph.D. 1971-2012
  • 11. Go-go Phase Problems Normal Problems 8 companies See endless opportunities A messy organization chart. Organized around people, not functions. Flexible direction Centralized leadership delegating tasks but not responsibility Lots of drive Too many priorities Equate more sales with success ©Ichak Adizes, Ph.D. 1971-2012
  • 12. Go-go Phase Problems Abnormal Problems Arrogance No responsibilities assigned No reaction to change in direction No decision-making outside the leader or core group Decisions are reversed by the leader ©Ichak Adizes, Ph.D. 1971-2012
  • 13. Mergers and acquisitions Stable Prime Aristocracy Adolescence Early Bureaucracy Go-go Infancy Bureaucracy Courtship Death growing aging ©Ichak Adizes, Ph.D. 1971-2012
  • 14. Their solutions "Where did IIdeal IS loser?" find this "He is good, executive director Ideal but for a son-in-law." “Everyone wants to be Cary fishing, "He is good, but to take him Grant. Evena want to be Cary Grant” to put I worm on a fishing hook." Cary Grant. ©Ichak Adizes, Ph.D. 1971-2012
  • 15. What they say I throw away to them, they cannot even see not to mention to catch They slowly adapt to sudden changes of organizational structure When I wake up at 2am I do not have anybody to call ©Ichak Adizes, Ph.D. 1971-2012
  • 16. What they get I do not talk on profit but to stay normal, otherwise I do not nee profit This is not just your toy, 1000 families depend on it and earn their living in it ©Ichak Adizes, Ph.D. 1971-2012
  • 18. Strategy From market share to profitability Focus on core capabilities Identify what not to do State values Opportunity driven Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  • 19. Structure Build accountability Create borders between the founder and the company Structure around assignments and not people Teach to play positions Go-go Build a Board with outsiders Founder’s Trap Avoid small companies Build profit centers ©Ichak Adizes, Ph.D. 1971-2012
  • 20. Short run Short run Short run Long run Short run Short run Sales R&D Strategic Finance Personal Marketing Production planning Accounting HRD ©Ichak Adizes, Ph.D. 1971-2012
  • 21. General manager An organization shouldMarketing Finance HRD Administration PC Director R&D be structured Long run by a genius, so that any idiot can run it. Accounting Personal Sales Production Rather then strcutred by an idiot – Short run Short run so just a genius can run it. ©Ichak Adizes, Ph.D. 1971-2012
  • 22. Style Mutual trust and respect by example Build a complimentary team of P&A Avoid the trap of “I am the Company” Differentiate between personal and corporation Delegation without abdication Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  • 23. Staffing Promote from within Build A’s Identify a COO Professionalize the processes of management Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  • 24. Planning & Goals Market share with minimum levels of profitability Develop policies, procedures, standards Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  • 25. Rewards Fixed, variable Go-go Founder’s Trap ©Ichak Adizes, Ph.D. 1971-2012
  • 26. XYZ Marketing (Development) HRD Finance Projects Servis & Purchasing Objects Trade mainteinance Support Warehouse Objects 1 (Sales) (Sales) (Sales) Accounting Objects 2 (Inventory) (Inventory) (Inventory) IT Transport Preparation Quality Obects 3 assurance Projecting (Montage) Administration Sales (Inventory) Workshop 1 Workshop 2 (Planing) ©Ichak Adizes, Ph.D. 1971-2012
  • 27. PROFIT MISSION STRUCTURE TRACKINGREWARDS SYSTEM ACCOUNTABILITY ©Ichak Adizes, Ph.D. 1971-2012
  • 28. Goal Can Reward Goal Reward Can Reward Goal Can ©Ichak Adizes, Ph.D. 1971-2012
  • 29. How not to getting old? (P A E i) (P A E i) (P A E i) ©Ichak Adizes, Ph.D. 1971-2012
  • 30. E E AAA EEE Decentralization AAAAA AAAAA AAAAAAA AAAAAAA PPPPPPPPP PPPPPPPPPP ©Ichak Adizes, Ph.D. 1971-2012
  • 31. ORGANIZATIONAL FAMILY President of the Group Infancy Aristocracy Prime Adolescence Go-go Uniformity will lead to Bureaucracy ©Ichak Adizes, Ph.D. 1971-2012