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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

  1. Multiple founders share equal decision-making authority
  2. No clear tie-breaking mechanism exists for disagreements
  3. Decision delays are observable during critical moments
  4. 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

  1. 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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