India inc must learn from travis kalanick’s exit from uber

India inc must learn from travis kalanick’s exit from uber

Travis Kalanick has resigned as CEO of Uber, the company he founded in the US, expanded to many lands and made into the world’s most valuable startup — worth about $70 billion. Yet, if he had not resigned, he might well have been sacked by shareholders.
This has valuable lessons for entrepreneurs and entrepreneurship around the world, including in India. Just because someone founded a company and made it worth something, it does not mean that he will be deemed necessary or sufficient for its subsequent growth. The powerful early-stage rockets that lift a satellite out of earth’s gravitational field and bring it near the desired orbit will not do when it comes to the final positioning of the satellite in its intended orbit; for that, small, but precise, thrusters are called for.
Of course, the tale of Steve Jobs’ legendary return to a flailing Apple that he had co-founded and had been ejected from, to make it into a powerhouse of technology, design and consumer delight that would eventually become the world’s most valuable company, serves to reinforce the narrative of companies being closely attached to its founding leadership. But that, we must realise, was an exception, not the rule.
Successful companies outgrow, more often than not, their founders’ managerial talents. The distinctive insight around which the business is formed, the fierce passion of the founder without which the business might not have taken hold and grown, and the loyalty of the founding team of employees — these are the stuff of legend, in successful companies, not what a business needs after having established itself.
If those founding passions turn out to have negative side effects, the business is possibly better off shedding them. It might sound unkind to compare brilliant but flawed founders with spent rockets or the sloughed-off skin of snakes, but the truth can sometimes be harsh.
We must congratulate Kalanick for recognising his continued presence at Uber’s helm would be a liability for the further prosperity of the company. And hope that similarly placed others would show similar courage.