What Leads Companies to Betray Their Own Principles

I'm A Ignatius. I'm Alison Beard and this is the HBR IdeaCast. So Alison, there is a phenomenon that we see over and over again where founders create companies with a purpose. With a noble mission. Maybe a don't be evil motto. And then over time it all gets lost, right?

Short term financial pressure makes companies cut corners, lose conviction, and in some cases the founder visionary themselves is even forced out. Yeah, I can think off the top of my head of lots of examples. You know, Apple when Steve Jobs wasn't in charge, Starbucks when Howard Schultz stepped down before he came back. Google which was your don't be evil reference now alphabet. And even my friend's company, a healthy fast casual food chain that went downhill because private equity came in and he left to start another business. So Eric Reese, today's guest, has thought a lot about all this. You might know him as the author of the book, The Lean Startup.

In recent years, he has turned his attention to how and why companies lose their way over time. And while he blames a system that excessively prioritizes short term Shareholders needs He also says companies themselves are somewhat complicit. I feel like a few years ago.

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