Page 16 - Harvard Business Review, Sep/Oct 2018

TODD OLSON IS THE
CEO AND A COFOUNDER
OF PENDO.

IN MY OPINION, selling the company is But I think it’s more likely COMMENTS FROM THE
giving up. That’s why Elena’s best choice is that Elena will learn from the new CEO. She HBR.ORG COMMUNITY
to hire a new chief executive officer. can pick up a lot by watching how Christine, “
I never get the sense that Elena has an MBA with more varied experience, runs Preserve Her Intentions
truly lost her passion for 2 Proud Pups and the company. Those lessons will make her a The company grew into
what it does. If she had, then yes, selling stronger leader later on. what it is because of
might be her best move. But it sounds As an entrepreneur, I’m intimately Elena’s intense passion to
to me as if she just wants a break—some familiar with decisions like this one. After create better products for
time to figure out how best to balance her founding my second company, I brought in her dogs and all pets. If
career and her family life. Choosing a deal an executive with more sales experience to she hands it over to a new
with Doghouse Luxe will limit her future be CEO. Unfortunately, it didn’t work out. CEO and remains a partner,
options; instead, she should expand her We then sold to another company, which her genuine intentions can
options, by hiring a new CEO. went public, and I and all my employees help drive the company
If Elena sells the company, she will stayed on through that journey. even longer.
effectively be finished with it. 2 Proud I’d advise Elena to stay as involved in Sriharsha Sammeta
Pups will have a new owner, and she 2 Proud Pups as I did in that situation. Of machine learning intern
probably won’t be involved in any course she needs to continue the “getting Apple
decision making. That would be a shame, to know you” process with Christine and
because the company, created and keep her CEO search open in case someone
developed with her guidance, seems even better pops up. Although her due date More Money,
generally strong. Its products are good, is approaching, she should remain patient, Greater Scale
its customers sound happy, and even spend lots of time with multiple candidates, Given Doghouse’s proven
Pete doesn’t want her to leave. The consider what-if scenarios for each one, and ability to merge with small
financials aren’t bad either; they may have consult numerous references, including companies, it makes sense
plateaued, but they aren’t shrinking, and contacts that haven’t been provided. for Elena to go for Rajeev’s
the market remains vibrant. There’s still a offer. It would give her
lot of room for 2 Proud Pups to grow, and HIRING A NEW CEO WILL ALLOW substantially more money
Elena should make sure that she continues and help her brand go
to be a part of it. ELENA TO STEP BACK WHILE beyond its current scale.
As the founder, she put a lot of her STILL GUIDING THE COMPANY Vishesh Agarwal
personality into the creation of her SHE CALLS HER BABY. MBA student, Indian Institute
company. That will never go away, even of Management Calcutta
if she does. Hiring Christine will not only Elena may be feeling tired, burned out,
give her more flexibility in the future, and stressed about the new baby, but it’s
but also ensure that she has the option a bad idea to make big decisions in that What’s Most Important?
to return and continue to build on her state. Selling to Doghouse Luxe may be a Letting go is the hardest
vision. Maybe Elena will miss running move she’ll ultimately regret. Is she sure part in either scenario.
the company and serving her customers. she never wants to be involved with 2 Proud If maintaining brand and
Maybe she’ll want to come back when her Pups again? Considering that she calls the product control is more
child and any future siblings are in school. company her baby, that doesn’t seem likely. important to Elena, then
She started 2 Proud Pups because As a father of four who also considers my my gut says bring in a new
she wanted to solve a problem and had company my baby, I would want to be part CEO. If time and financial
a vision for how to do it. By staying on of that baby’s future growth. I think Elena freedom are what she’s
as the majority shareholder, she can would too. Hiring a new CEO will allow her looking for, sell and don’t
protect that vision, her employees, and to step back while still guiding the company look back.
her distributors while still pushing the she founded. Claire Lamont
company toward growth. If she feels at founder and chief creative
any point that Christine is leading the HBR Reprint R1805L officer, Smak
business in the wrong direction, Elena Reprint Case only R1805X
can reevaluate and adjust. Reprint Commentary only R1805Z

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