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LP-005Acute
Decision Authority Diffusion
Also known as: Co-founder Paralysis, Shared Authority Syndrome
Leadership PathologyFounder-induced
Key researchers: Tom Eisenmann
Definition
A leadership pathology where shared or unclear decision-making authority prevents timely organizational response. The organization cannot execute decisions because authority is distributed without clear resolution mechanisms.
Diagnostic Criteria
- Multiple founders share equal decision-making authority
- No clear tie-breaking mechanism exists for disagreements
- Decision delays are observable during critical moments
- Personal relationships interfere with professional disagreement
Symptoms
- Delayed responses to market signals
- Prolonged debates without resolution
- Avoidance of contentious decisions
- Consensus-seeking paralysis
- Decision fatigue across leadership
Risk Factors
- Co-founders who are close friends or family
- Equal equity splits without governance structure
- Conflict-avoidant leadership personalities
- Lack of board or advisory oversight
References
Additional Sources
- Eisenmann, T. (2021). Why Startups Fail: A New Roadmap for Entrepreneurial Success. Currency.
Known Cases
- Quincy Apparel - co-founders Wallace and Nelson shared equal authority, slowing critical decisions
Classification
- Code
- LP-005
- Localization
- Leadership Pathology
- Primary Etiology
- Founder-induced
- Typical Course
- Acute
- Functional Impairment
- Executive
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