In the day-to-day struggle of building, running, and scaling a business, founders can find themselves stuck in Manager Mode, putting their energy into operations and structure instead of looking ahead at the next 5–10 years. While Manager Mode ensures systems run smoothly, Founder Mode triggers transformative ideas and galvanizes teams to achieve ambitious goals. The challenge? Knowing when and how to get out of Manager Mode.
In Part 8, we examined how navigating the Stages of Development requires founders to shift between modes, balancing the details of Manager Mode with the long-term view of Founder Mode to sustain growth. This balance keeps the founder’s vision alive while empowering teams to execute and thrive.
As founders, our lives get so much easier when we master shifting modes — from Visionary Mode to set the direction, Magician Mode to create innovative solutions, and Coach Mode to inspire our teams. But Manager Mode, while critical for operations, often becomes a trap. It’s where the daily work of ensuring processes are followed, commitments are met, and systems operate smoothly can overshadow strategic thinking. Manager Mode sucks the life out of us more often than not.
The key isn’t avoiding Manager Mode altogether. It’s essential — especially in Stage 3 and Stage 4 companies — but it’s also not where we’re most effective, or where we thrive. For most of us, staying in Manager Mode for too long erodes energy, limits creativity, and reduces our ability to drive meaningful growth.
As companies scale, frameworks like the Stages of Development and the related Stratified Systems Theory (SST) shed light on why founders thrive in higher-level strategic roles and often struggle in Manager Mode. Our time span of responsibility as founders means we naturally excel when focusing on years ahead — envisioning, innovating, and aligning teams. But Manager Mode demands attention to immediate details and shorter time spans, draining the energy we need to plan for long-term success.
How can founders step out of Manager Mode without things veering out of control? The key is hiring right and finding a sustainable path out.
Why Manager Mode Conflicts with Founders
Manager Mode, while essential for operations, often clashes with our natural strengths and instincts. Here’s why it can feel draining and counterproductive for those of us wired to think big and act boldly.
1. Time Span of Responsibility (TSR)
Founders, particularly Visionary types, naturally think in long-term horizons: 5–10 years if not decades. Manager Mode, by contrast, focuses on shorter spans — days, weeks, and months (ugh) — creating cognitive dissonance and frustration. The time span of responsibility framework illustrates this conflict clearly. Successful founders move swiftly toward operating at Stratum 5 or higher, while Manager Mode typically requires a Stratum 2 or 3 focus.
2. Opportunity Cost
Every hour a founder spends in Manager Mode is an hour not spent on:
- Innovating and creating long-term value.
- Building relationships that drive the business forward.
- Ensuring the company stays aligned with its vision.
3. Burnout and Frustration
Most successful founders thrive on complex and/or longer-term problems and birthing big ideas, not detailed execution. Being stuck in Manager Mode can drain our energy, leading to stagnation, disengagement, and even burnout.
The Paths Out of Manager Mode
Founders should aim to be on a clear path to spending less than 10% of their time in Manager Mode, redirecting their energy toward the high-impact areas where they can create the most value. Here are a few ways to get out of Manager Mode.
Option #1. Hire a Stratum 4 “Second-in-Command”
This role, sometimes referred to as an Integrator (within the EOS® community) or chief operating officer, is specifically designed to take ownership of day-to-day operations. When the time is right — meaning you’ve scaled to Stage 4! — hiring a Stratum 4 second-in-command who's capable of managing the systems, teams, and processes that keep the business running will be the proverbial godsend (assuming they're highly aligned with your Forever Agreements).
- What They Do: Oversee execution, align teams, manage resources, and remove obstacles.
- Why It Works: A strong second-in-command frees the founder to focus on big-picture strategy, relationships, and innovation.
- When to Consider: Ideal for companies in Stage 4 and early Stage 5, where operational complexity requires a dedicated, high-capacity leader.
Option #2. Assemble a Capable C-Suite
Another viable path is a strong C-suite composed of leaders who can collectively absorb overseeing the vast majority of the organization’s Manager Mode requirements. Rather than relying on a single second-in-command, the C-suite distributes managerial responsibilities across functional leaders (like a CFO, CTO, or CRO).
- What They Do: Each leader owns a specific function, ensuring operational excellence in their respective areas.
- Why It Works: This team approach lightens the founder’s load by decentralizing Manager Mode responsibilities.
- When to Consider: A natural progression for Stage 5 companies with increasing scale and complexity, requiring expertise across multiple functions.
Option #3. Hire Both: A Second-in-Command and a C-Suite
For very late Stage 5 and Stage 6 companies with multiple operating units or divisions, the most sustainable approach is often to hire a second-in-command and assemble a C-suite.
- Why It Works: The second-in-command ensures cohesion, while the C-suite leaders drive execution at the functional level. Together, they create a scalable system that allows the founder to stay in Visionary Mode without being pulled into the weeds.
- The Tradeoff: This approach is not inexpensive and is typically associated with companies preparing to scale beyond a single operating unit.
- When to Consider: When you're thinking about starting up another business unit, division, or company.
What Happens When Founders Avoid These Steps
Most reasonably successful founders can endure unusual amounts of grind and long hours for quarters, if not years, on end. At some point (and we’re all unique), failing to step out of Manager Mode will start to come at a significant cost to both the founder and the company. Without a clear strategy to minimize time spent in Manager Mode, founders risk:
- Bottlenecks: Decisions stall as the founder becomes a single point of approval, frustrating teams and slowing progress.
- Burnout: Balancing daily operations with long-term strategy leaves founders drained, disengaged, and unable to focus on growth-driving initiatives.
- Stagnation: The lack of focus on innovation and vision limits the company’s ability to adapt and scale effectively.
By prioritizing systems and leadership structures that take Manager Mode off our plates, we can reclaim energy and focus on our greatest contributions — vision, strategy, and growth.
Manager Mode Isn’t Where Founders Thrive
Manager Mode is crucial for keeping an organization running smoothly, but it’s not where founders add the most value. The good news? We don’t need to stay there. By hiring a second-in-command, assembling a capable C-suite, or both, we can shift our focus back to what we do best: driving vision, inspiring teams, and creating long-term value.
The goal isn’t to avoid Manager Mode altogether — it’s to ensure someone else owns it.
If you’re stuck in the operational grind, it’s time to evaluate your team structure. Is it the right moment to bring on a Stratum 4 second-in-command? Build out a robust C-suite? Or pursue both strategies to scale effectively? The path forward depends on what stage your company is in today and what you need for further growth.
Up Next…
Even when Visionary and Legacy founders take a step back from leading damn good, if not great, companies and entrust our legacies to new leaders and managers, our choices continue to enrich the organization for years or decades to come. In the next part, we’ll analyze some of the world’s most iconic brands and look at how operating in Founder Mode is necessary for building a company that will leave an impact for generations.
If you want to stay tuned, I encourage you to sign up to receive email updates with each new part of the Founder Mode Series. I’d also love you to share this with others who are grappling with “Founder Mode,” whether they’re a founder or working with one. I want this series to spark discussions and debates — after all, that’s how we learn and grow. As someone who knows he’s “guilty” of Founder Mode, I’m genuinely excited to explore these ideas with any and everyone who's interested in this topic.
So… I’m adding this link to my Google Docs draft of this series. I’d love to get your feedback and read stories from those who have experienced the good, the bad, or the ugly of working with one or more founders in Founder Mode. Who knows — maybe this will turn into a book that includes lots of great stories about founders around the world.
Read the rest of the Founder Mode Series:
- Part 1: What Is Founder Mode, Really?
- Part 2: Tapping into the Founder's Mindset
- Part 3: Essential Modes for Founders
- Part 4: Understanding the Personalities of Visionary and Legacy Founders
- Part 5: Founders Within: The Founder's Mindset Inside Large Organizations
- Part 6: Mastering Founder Mode: The Core Operating System
- Part 7: 6 Ingredients Founders Use to Build Damn Good, If Not Great, Companies
- Part 8: The Founder's Journey Through the Lens of the Stages of Development
