This was a really thought-provoking case on FreeMobility. I found myself reflecting almost all of lunch on a few important questions I still have regarding today's discussion:
1) My partner and I have discussed many times starting a venture together, whether that take the form of some investment fund, conducting a Search, or potentially even doing something entrepreneurial together. We think we complement each other very well professionally, similar to Conroy and Chen, but today's questions related to the optics of that has left me with more questions than answers about dually owned/managed enterprises with people in a relationship. @Alyssa - would be eager to hear your thoughts further on where you have seen these arrangements most successful, and any insights from your experience on "red flags" that an endeavor is best not to pursue with your partner?
2) I really appreciated Caroline Pringle's comment in the chat related to Donna Weathers and her coachability/receptiveness to suggestions around her performance. As an executive of the company, being willing to take feedback, adjust one's actions, and pivot with the changing needs of the business seems critical. Seeing how Donna reacted to the simple suggestion of taking some Excel courses felt like problematic fixed mindset and someone shutting out constructive advice. Yes, in this specific example, we could have hired someone to support her in pulling together some metrics. But in other cases, I would imagine that mindset would prove, again down the line, to be a barrier to progress and adapting the business to new challenges.
3) One thing we didn't talk about too much was the role of Kate Lewin (VP of Ops). As new, incoming executives to the company, it was clear to Conroy and Chen that Kate was a "leader" of the executive team, with the rest of the VPs seeming to defer to her in that first meeting. I'd be curious if that is a net asset (i.e. an aspiring leader who wants to really step up and make the company better) or a liability (i.e. a holdover from the old way of doing things who will probably be vocal in changing directions)? Not sure it's the same in every scenario, but she seemed like a persona very important to the future of the company that we didn't spend a ton of time reflecting on.
@Eric - I found #1 to be the most interesting part of the case myself. It's such an interesting, tricky issue and I feel like every situation is so different that it's tough to draw too many general rules for successful arrangements.
ReplyDeleteI'll admit I was negatively biased against the arrangement, but as I reflect more, I think mostly because my only personal experience with this type of set-up in the business world ended really bitterly ((https://www.techinasia.com/indian-unicorn-mu-sigma-puts-divorce-mess-dhiraj-rajaram-takes-ceo). That said, the husband / wife duo still created a ton of value and built a really significant enterprise.
While that may not be the optimal outcome, there are countless massive successes. See below for an interesting twitter thread I came across this summer highlighting the importance of being complementary to your partner (https://twitter.com/theSamParr/status/1295718343694065665). To me, that seems like the single biggest ingredient for success.