When Founder’s Syndrome Is Used for Personal Gain

Abstract

Founder’s syndrome is when one individual holds disproportionate power and influence in an organization. It is not limited to the founder of an organization and can be found particularly in dominant and charismatic organizational leaders. While the nonprofit leader in this case was not a founder, he was highly charismatic and was granted as much authority as a founder. He became reluctant to share power, even when it was clear he needed help to build the capacity of the organization. The board of directors did not feel it necessary to check the executive director’s power because he had been so successful in growing the organization up to a point. When it was discovered he was having an inappropriate affair with a subordinate employee, however, the board did ask him to resign. Yet it allowed him to name his successor, and accepted the executive director’s nomination of the employee with whom he had an affair. Board and staff of nonprofit organizations have obligations to act in good faith in the governance of the organization and to enforce the duties of care and obligation. This requires transparent communication. Without two-way symmetrical communication maintained throughout the organization, this executive director abused the power granted him for his own gain.

Citation

Fernsler, T. (2021), "When Founder’s Syndrome Is Used for Personal Gain", Morris, L.R. and Edmonds, W.M. (Ed.) When Leadership Fails: Individual, Group and Organizational Lessons from the Worst Workplace Experiences, Emerald Publishing Limited, Leeds, pp. 127-137. https://doi.org/10.1108/978-1-80043-766-120211012