No. of Recommendations: 15
Forgive my first post to this valuable board, but I came across this article and thought it intriguing. When VCs "create" about 2,000 companies in a year - and IPOs increase by about a factor of 10 over historical averages - where is the leadership talent coming from? I don't think the leadership is there. I've worked at enough companies to know that about 50% of the company success is traced to the CEO and a lot of CEOs are very poor. I believe an example of this is the amazing history of Coke over the last 10-15 years.

I noticed a lot of Libertarians on this board (which I am not!) who could say that the efficiency of the market will soon enough shake the inefficient companies out. No need/way for government to intervene (even though we will probably see proposals from pols to do so). I'd agree with this point and echo that, in the long run, "rational" qualities always return to markets.

Here's the link:,1503,183,FF.html

And here's an excerpt:
I recently did a series of interviews with CEOs about the next 10 years and how the Internet would change their business. Most of the interviews were with Global 2,500 CEOs -- people like Harvey Golub at American Express. But 20% of my conversations were with the leaders of Dot Coms.

Yes, the traditional CEOs were scared by the Internet and were scrambling to catch up. But that wasn't what grabbed me. The biggest revelation was the low quality of the Dot Com CEOs when compared with the traditionalists.

What was missing? Many of the Dot Com CEOs lacked depth, experience, and common business sense. Their commitment was short-term -- three years on the average. They talked about their highly fluid work force -- a constantly changing cast of characters, washing in on the promise of more stock options and an IPO and then washing out, post-offering, in search of another pre-IPO company. The business thinking of these CEOs centered on simplistic and clichéd mental models: "Be like Amazon!" "Advertise, advertise, advertise!" "It's a land grab!" "We don't want to be profitable too fast." "B2B is the place to be." There was a fanatical focus on valuation -- getting public and liquid -- while value -- what the customer eventually gets -- was a back-seat discussion. In many ways, these companies felt hollow, lacking some of the fundamental ingredients of long-term success.

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