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The article suggests that the correlation between corporate success and founders being replaced is due to the influence of investors; I think there's another far more innocent explanation: Many of the replaced founders WANTED to be replaced.

I recently found a bug on the Yahoo website (a graph was being drawn incorrectly) which could be fixed in a startup in about 15 minutes; but because Yahoo is such a large company and has so many users, individual developers can't go in and make even a trivial, obviously-correct fix to the live website -- instead, it takes three weeks for the fix to go through QA (along with all the other changes which have been prepared since the last QA cycle).

A founder who has spent three years building a startup -- and being able to fix bugs and see the results 30 seconds later -- isn't likely to be happy working with a 3 week QA cycle. There's nothing wrong with either approach; they're just suitable for different people.

Do what you're good at doing, and let someone else do what you're not good at doing. If you're a startup hacker, then go do a startup; but once your company is successful and not a startup any more, bow out and let someone else take over. Staying around to do a job which you're neither interested in or good at doesn't do any good for either you or your company.



i agree. this study is similar to Kaplan's horse/jockey analysis:

http://www.vcconfidential.com/2006/04/horse_or_jockey.html

but both studies ignore the fact that there are massive differences between a good start up CEO and a good public company CEO...


Another thing to consider is that sometimes 'QA' isn't even an appropriate term for what goes on in a 3 week change cycle. Sometimes it's only because there has to be a clear blame tree if anything goes wrong.




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