Learning about Leaders … from the Organizations they Build

One thing I have learned in over 2 decades of working with startups is that you can learn the most about a leader from the organization that they build. Over time, especially if not checked by a capable board, the organization will come to reflect the strengths and weaknesses of the leader(s). There is a great German saying “Der Fisch stinkt vom Kopf” – “The fish stinks from the head.” The origin of this saying is that a fish’s brain is the most fragile part of the body and when a fish has been dead for a bit the head starts to smell first. Today this expression is used in Germany to mean that the problems of an organization reflect the mistakes of the leadership.

So especially when evaluating whether to back a repeat founder, I look at what kind of people did they hire and retain the first time. What kind of culture did they foster? What behavior did they tolerate or encourage and where did they draw the line? For startups, much of this can be found out by talking to prior employees. Obviously people also grow, so it matter more what they did as time goes on not when they just got going. For longer term leaders, the information tends to be right in public view.

I am writing this today, because it is on my mind following the publication of the Mueller report but also based on Facebook’s latest revelations. If you are still open to revising your opinion about Trump or Zuckerberg, do it on the basis of the organizations that they built. The fish stinks from the head.