{ "docId": "019f6b8f-71b9-7767-8357-69b177d37fb3", "docSlug": "jarvis-throne-vs-the-kingdom", "documentTitle": "Throne vs the kingdom", "authorId": "throne-vs-the-kingdom", "authorName": null, "documentKindSlug": "deck", "documentKindLabel": "Deck", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": null, "orientation": null, "aspectRatio": null, "pageNumber": 12, "pageCount": 45, "prevPage": 11, "nextPage": 13, "slideType": "other", "function": "establish_context", "density": "dense", "nDataPoints": 0, "notes": "Academic-style text slide citing various management and organizational behavior theories.", "elementsJson": null, "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019f6b8f-71b9-7767-8357-69b177d37fb3/12", "deckHref": "/decks/019f6b8f-71b9-7767-8357-69b177d37fb3", "deckJsonHref": "/decks/019f6b8f-71b9-7767-8357-69b177d37fb3.json", "deckAnchorHref": "/decks/019f6b8f-71b9-7767-8357-69b177d37fb3#slide-12", "components": [ { "bbox": { "h": 0.02, "w": 0.7, "x": 0.15, "y": 0.15 }, "kind": "paragraph", "text": "Performance implications: Is there a tradeoff between autonomy and value creation?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2f7a1fa6-ef0a-40a2-a16c-12f45ef6d24c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.7, "x": 0.15, "y": 0.18 }, "kind": "paragraph", "text": "The CEO position exerts significant control over company decisions. This is particularly true for new ventures, which are just beginning to form and evolve, and in which every CEO decision “seems to bear more pronounced weight” (Aldrich and Fiol 1994:287). From a resource-dependence perspective, a board chooses the CEO who is most “capable of coping with the critical problems facing the organization” (Pfeffer and Salancik 1978:236). During the early days of the startup, a founder is often the best person to cope with those challenges: s/he came up with the idea, which was often based on the founder’s expertise or sparked by the founder’s prior employment experience (Bhide 2000), and the managerial challenges are at the level of a technical project team rather than a multi-function company.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d3b201ed-f581-4342-a665-1c1ea97fa046", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.7, "x": 0.15, "y": 0.09 }, "kind": "paragraph", "text": "Hypothesis 1d (investors): Founders who raise capital from venture capitalists will retain less control. Founders who raise capital from angel investors will retain more control.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "da5c39b8-625b-47f7-af7d-88d1af3b157e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.7, "x": 0.15, "y": 0.45 }, "kind": "paragraph", "text": "However, as the startup grows and changes, the founder often lacks the skills to address the next set of challenges. For instance, after product development has been completed and the product has to be marketed and sold to customers, the challenges shift from technical issues to building a multi-function company (Wasserman 2003). At that point, a new CEO will often be more qualified to address the company’s challenges and should be more effective at growing the value of the company, as was the case with Richard Williams at Wily (described above). In other words, a new CEO will be able to do things that the founder can’t do. In addition, a new CEO might be able to do things that the founder won’t do. For instance, founders might be constrained by their attachment to their initial ideas and strategies (Adomdza 2008) or to their early employees (e.g., Wasserman and Fynn 2007). They might fall prey to managerial conceit (March and Shapira 1987), to the temptation to escalate their commitment (Staw 1981; Schmidt and Calantone 2002), or to overconfidence and complacency fostered by prior success (Miller 1991). In such situations, a new CEO would be more effective at adjusting strategies or at changing the employee base to fit the company’s new challenges.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ef17fc1d-a1e8-441d-9d3f-8ef4cbb0085e", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "resource-dependence theory", "slug": null, "matchId": "3364100a-f808-48eb-a71c-96f2cf930703", "evidence": "Pfeffer and Salancik 1978:236", "confidence": 0.9 } ], "arcBeats": [ { "to": 15, "from": 6, "beatId": "7f6c6f40-8ea0-409f-b760-3bfa165fe38e", "arcName": "The Sequoia Pitch", "arcSlug": "sequoia-pitch", "beatName": "Market Size", "beatSlug": "sequoia-pitch-market-size", "evidence": "The document discusses the methodology and data used to analyze the relationship between founder control and value creation.", "position": 1, "confidence": 0.8, "parentBeatName": "Evidence", "parentBeatSlug": "evidence" } ], "loops": [ { "to": 20, "from": 10, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "93fc7fbb-9e7f-48f5-93cf-3a34bae2fc91", "evidence": "The document discusses the potential costs of inaction in terms of valuation and capital raised.", "position": 0, "objective": "Highlighting the consequences of not addressing the tradeoff between founder control and company value", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }