Dec 28

How to Super-size the Economy

By | December 28th, 2016|Frontline obsession, Insurgency, Owner mindset|0 Comments

founder-special-sauce-220x207One of the new movies on offer this holiday season is the Michael Keaton film “The Founder,” which depicts how Ray Kroc’s relentless drive turned a small California restaurant into the ubiquitous McDonald’s chain.

Earlier this month, the Wall Street Journal published an op-ed James Allen and I wrote called “The Company Founder’s Special Sauce” (subscription required, or view the digital reprint on Bain.com). In it, we noted that Kroc epitomized many of the traits of the Founder’s Mentality. Indeed, his autobiography, Grinding It Out, was one of many books by founders I read during our years of research for our book, The Founder’s Mentality. […]

May 19

The Power of 10: Restoring Capability-Led Growth

By | May 19th, 2016|Owner mindset|0 Comments

fm-wheel-engine-capability-led-growth-220x207As an insurgent, you had one major asset: speed. Sure, the incumbents had scale, but you could mobilize resources to solve customer problems faster than the big boys. You could concentrate all your resources on a few critical battles to overwhelm your competition. You and your team focused on picking the right battles and making sure you had the capabilities you needed to win. It was exciting. And fun.

You didn’t actually think about reallocating resources to fund those battles and capabilities—as an insurgent, you just did that instinctively, all the time. Your team understood resource supply and demand. They knew where to concentrate resources because everyone was clear about who your most important customers were and which capabilities would make them pick you over the competition. And supply wasn’t a problem because you were in control of all the firm’s […]

Mar 2

The Golden Thread, or A Movie and Three Questions

By | March 2nd, 2016|Frontline obsession, Insurgency, Owner mindset, Uncategorized, Video|0 Comments

Grab some popcorn; we’re going to watch a little movie and then have a discussion. The movie is a short version of a story we’ve told here before—the story of Jaipur Rugs, the story of Founder’s Mentality in action. Please enjoy.


[…]

Dec 23

The elements of Founder’s Mentality: Aversion to bureaucracy

By | December 23rd, 2015|Founder's Mentality defined, Owner mindset|0 Comments

FM-Wheel-Owner-mindset-aversion-220x207This is the last of nine blog posts examining the elements of Founder’s Mentality: Insurgency, frontline obsession and owner mindset. Here, we look at aversion to bureaucracy, one of the sub-elements of owner mindset.

It is appropriate that we close our recent series of posts on the elements of Founder’s Mentality by examining the aversion to bureaucracy because celebrating the heroes in your company who fight bureaucracy every day is essential to maintaining Founder’s Mentality. […]

Dec 23

The elements of Founder’s Mentality: Bias for action

By | December 23rd, 2015|Founder's Mentality defined, Owner mindset|0 Comments

FM-Wheel-Owner-mindset-bias-for-action-220x207This is the eighth of nine blog posts examining the elements of Founder’s Mentality: Insurgency, frontline obsession and owner mindset. Here, we look at bias for action, one of the sub-elements of owner mindset.

In companies with high Founder’s Mentality, the heroes are the people who act. They don’t shy away from conflict—nor do they allow themselves to be bogged down in conflicts. They won’t tolerate a bureaucratic answer, especially if it means a customer is kept waiting. […]

Dec 22

The elements of Founder’s Mentality: Strong cash focus

By | December 22nd, 2015|Founder's Mentality defined, Owner mindset|0 Comments

FM-Wheel-Owner-mindset-strong-cash-focus-220x207This is the seventh of nine blog posts examining the elements of Founder’s Mentality: Insurgency, frontline obsession and owner mindset. Here, we look at strong cash focus, one of the sub-elements of owner mindset.

Incumbent companies tend to lose faith over time in cost control. Instead of lowering sales, general and administrative (SG&A) costs as a percentage of sales, for instance, they are content to allow them to grow at the rate of sales growth. They ignore the value of continuously reducing costs and passing the benefit along to customers.

This doesn’t happen at companies with high Founder’s Mentality—companies we define as having an extraordinary sense of insurgency, a frontline obsession and an owner mindset, each of which have their own sub-elements (see figure below). The last of these elements, owner mindset, provides some of the most important antibodies to complexity, creating a culture that ruthlessly cuts costs and complexity and rewards those who act to overcome and destroy bureaucracy whenever it rears its head. […]

Load More Posts