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I've now been part of three startups. One of them as a founder, and the other two as a part of the management team.

I often compare the other two founders in my mind. One of the big differences between the two has been that one is more than happy to let go... of control. He's believed enough in his team to delegate and forget. Of course, there are some checks in terms of discussions, reporting etc., but by and large the team has the ability to take decisions.

The other one has not found it easy to do that. Most decisions flow from the top, the team feels constrained. He is involved at a very minute level of detail, when perhaps he needs to leave those to the team and concentrate on other things. This inability to believe in his people, I think, is costing the company dear.

In our own case, perhaps we did even worse. We believed in the team too much. Not that the individuals were not capable enough; but you need to balance delegation with reporting and monitoring. Otherwise, you're dependent on the capability of only one person. In a startup, that can be fatal, as processes don't exist to catch mistakes, and the environment is too fluid.

One of these companies can be considered a clear success. The other one, a little early to decide.

Here's another take on this issue, from an entrepreneurs.
Building an open culture

My own thought, as an entrepreneur, is that the way to do this right is to hire people that you can rely on in a white box (more on that in another post, but basically someone you can rely on because of the way they work) mode.

Once you've got those people, delegate like crazy, and allow them to take decisions. Let them be entrepreneurs in the garb of an employee.

I like to think I did that well in my own company. Will I call my company a success? Not in the financial sense, but I think the reasons were elsewhere. Did we hire the right people? Absolutely yes. If and when I start another company, quite a few of them would be the first set of people I'd look to hire.

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