E140A -Session 14

E140A - Session 14

Founder-CEO Succession

Summary

The Wily Technology case addresses a critical stage in a new venture's development, when the founder who has been leading the company is being replaced by a professional CEO. It examines the events, conditions, and founder characteristics that precipitate such a change, and the issue of whether the founder should remain in the company after the succession event and in what role.

Guest

Peter Fenton biography
Peter Fenton video clip collection on the Stanford Educators Corner (optional)
Forbes recognition of Peter Fenton

Required Readings (Policy on Required Readings.)

Case: Wily Technology (Purchase online)
- Case Opening: Team #3
Harvard Business Review article titled "The Founder's Dilemma" by Noam Wasserman, Product#: R0802G, Published: February 01, 2008.(see here for directions on downloading this HBR article)
What Do Venture Capitalists Really Do, and Where Do They Learn to Do It? by Fred Dotzler, The Journal of Private Equity, Winter 2001
Watch the following video clips:

Study Questions (Policy on Study Questions.)

What are the risks of removing Lew Cirne? Of keeping him?
What are the pros and cons of Wily's approach to finding a new CEO?
As Lew Cirne, why would Dick Williams want to replace you as Chairman?
As David Strohm, if Lew rejects Dick Williams' demand and threatens to leave Wily, what would you do?

Assignment

Pretend that you are Dick Williams. How will you encourage Lew Cirne to accept the deal as described on page 12 of the case and what actions will you take to ensure a smooth transition? Please write the assignment in the first person as Dick Williams.

Note: Only one submission is required from the opening team. All others must submit individual entries.