Explore a framework to build and invest in profitable companies that consistently outperform the rest
How do great organisations go from paper to profit? What are the secrets to sound, lucrative decision-making? And how can you analyse executive and company performance for smarter investing - as a leader or a shareholder? In The Founder Effect: Three Pillars of Success in Founder-Led Companies, investment funds manager Lawrence Lam identifies the intangible elements that drive the success behind outstanding global companies.
Backed by behavioural psychology, case studies and examples from some of the world’s most iconic brands, The Founder Effect shows you how to uncover a business’s potential for profit. This handbook presents a compelling three-pillar framework, giving you the tools you need to evaluate track record, assess motivation, and go beyond marketing spin to uncover actual progress.
- Understand the magic formula that generates success within executive management teams
- Uncover how intelligent organisational design supports a company, from people to productivity
- Review leadership judgement and uncover cognitive biases that influence decision-making
- Discover what motivates an executive team, from psychological ownership to incentive structures
- Ensure that an organisation’s leadership truly reflects its core values and culture
Perfect for investors, founders, executive management, board members and other business leaders, The Founder Effect is a can’t-miss resource for measuring what takes a company from good to great.
'Lawrence Lam provides a clear framework for evaluating management teams by highlighting the traits that make great founders successful. The Founder Effect is a must-read for anyone looking to understand what sets top leadership apart.' - Chip Wilson, Founder of Lululemon
Table of Contents
About the Author xi
Introduction xiii
Part I: Judgement 1
1 Decision accuracy 11
2 Strategic allocation 29
3 Group cognitive biases 47
Part II: Alignment 73
4 Extrinsic motivators: Effective incentives 91
5 Intrinsic motivators: The intangible driver 105
Part III: Influence 123
6 Internal influence: Leveraging the workforce 133
7 External influence: Attracting a radical base 159
Epilogue: If you know, you know 181
Acknowledgements 185
References 187
Index 197