01/26/2023
Before the board finally removed him, the CEO was offered an alternative: become a creative consultant to the company and make room for a new leader. Instead, Charney chose to "destroy it all, rather than face the prospect of someone else having even the slightest control over what he had built,” author Ryan Holiday writes of the founder of American Apparel.
Though the company was founded on fair labor practices and ethical branding, "as success came and temptations swirled" Charney slowly betrayed those principles, clinging to control and power. Investors, advisors, and employees all beseeched him to “bring on competent operators to help solve difficult problems"; instead, Charney surrounded himself with "lackeys" and people he could manipulate, rather than share power or empower others.
This is leadership parable, and one that's important for nonprofit board members to know. The sad truth is, among the millions of nonprofit founders in the world, there are some Charneys--founders whose egos have become bigger than the mission. This puts the nonprofit board in a tough spot: allow the ineffective leadership to continue, or exercise the responsibility that the public, donors, and the organization's clients have charged it with.
Are you concerned that something similar may be happening in your organization? Reach out here or through my website and let’s chat about how I can help your board assert the authority entrusted to it. And click the 🔔 icon at the top of this page if you'd like to be notified of my future posts.
You can read the American Apparel story and other insightful lessons on leadership in Ryan Holiday’s fantastic book, "Discipline is Destiny.”
Dovcharney @ Flickr, CC BY-SA 2.0 , via Wikimedia Commons