Category: Books

  • Why Unhappy Leave Can Break a Startup

    Why Unhappy Leave Can Break a Startup

    The internet has a long memory, but a very selective one.

    Old news resurfaces without warning. Context quietly drops off. A half-forgotten announcement suddenly becomes today’s debate. That is exactly what has happened over the last few days with a decision taken in China in 2024.

    Many are now discussing something being called Unhappy Leave.

    On the surface, the idea is simple.

    Employees are given ten additional days of leave every year. These days can be taken purely at their own discretion. No medical certificate. No justification. Just the employee deciding they are unhappy, stressed, or mentally exhausted. The important detail is this. If a manager denies this leave, it is treated as a policy violation.

    In a country known for long working hours and intense workplace pressure, this sounded radical. Predictably, the internet amplified it. It praised it. Compared it. And in some cases, reduced it to a slogan.

    The policy was announced by Yu Donglai, the founder of Pang Dong Lai, a Chinese retail chain admired for its employee-first culture. The announcement was made in 2024 and quietly implemented. It went viral much later. That delay itself is telling. Good ideas do not always travel fast. Sometimes they wait for the right moment, or the right outrage cycle.

    At first glance, this feels like a bold and humane move. And it is. There is no denying that.

    It also reminds many people of earlier experiments in employee well-being, especially in the West.

    One obvious comparison I will make is with Tony Hsieh of Zappos. Long before workplace culture became fashionable, he spoke about trust, happiness, and unconventional benefits. At the time, many dismissed it as idealistic. History was kinder. Zappos built loyalty, reduced attrition, and created a culture that people still reference years later.

    So yes, Unhappy Leave is innovative. It is empathetic. It signals trust.

    But this is where founders and business leaders need to pause.

    Large organisations have buffers. They have HR teams, policy frameworks, and workforce planning models. They can simulate impact before announcing a benefit. They can course-correct if something breaks.

    Founder-led companies and startups do not have that luxury.

    This is where good intent can quietly turn into long-term damage.

    When a policy like this is announced without thorough internal thought, a few things happen quickly. Project timelines slip because key people are unavailable at critical moments. Managers hesitate to question leave decisions even when delivery risk is high. Teams compensate informally for absent colleagues. Resentment builds.

    The irony is this. A benefit meant to improve morale can end up eroding it.

    Missed delivery commitments create pressure elsewhere. Customers feel the impact first. Revenue follows. Leadership starts firefighting. Slowly, the same policy that was announced with warmth becomes a source of quiet frustration.

    And when leaders later attempt to dilute or roll back the policy, trust takes a direct hit.

    This is especially risky with Gen Z employees.

    Gen Z values authenticity more than perks. They sense inconsistency very quickly. If a benefit is announced and then poorly executed, the damage is not temporary. It creates a belief that leadership announcements cannot be taken at face value. That kind of trust loss is extremely hard to repair.

    In my experience, and this is my opinion, most employee benefit schemes fail not because of bad intent, but because of shallow implementation.

    Every founder who grows into a CEO learns this lesson sooner or later.

    Policies are promises. The moment you announce them, they become part of your culture. Culture cannot be paused, renegotiated, or quietly edited without consequences.

    Founder-led organisations should address key issues before announcing new ideas. Start with open conversations about challenges like fairness and peak periods, run small pilots to learn, and only expand once ready. Consistency, more than generosity, builds trust.

    This is also where founders benefit from an external sounding board. Someone who has seen these cycles play out across companies and stages, and can help leaders think through second-order effects before ideas turn into irreversible promises. That role, walking alongside founders as they translate intent into execution, is exactly why I do what I do as a Founder Catalyst.

    Unhappy Leave works at Pang Dong Lai because it sits inside a much larger system of values, planning, and discipline. It is not a standalone perk. It is a visible expression of an already mature culture.

    Stripped of that context, it becomes a slogan.

    The internet loves slogans. Organisations live with consequences.

    Reflection:  Every policy announcement feels reversible in the moment. Very few actually are. Founders do not just introduce benefits. They set expectations that quietly shape culture long after the applause fades.


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  • What is the AI question most founders are missing?

    What is the AI question most founders are missing?

    Most founders I meet are still asking the wrong AI question.

    They ask,

    “How do we use AI?”

    The better question today is,

    “What exactly is becoming undefendable?”

    I watched the recent Davos conversation between Dario Amodei of Anthropic and Demis Hassabis of Google DeepMind with that lens. Not as a technologist. As a founder who has seen waves come and go.

    The signal was clear. Coding is no longer the bottleneck. Thinking still is.

    When the CEO of a frontier AI company says his engineers no longer write code, only review it, founders should pause. This is not a future scenario. This is a current operating model.

    For Indian services and SaaS companies, this reveals uncomfortable truths.

    First, speed is no longer a moat.

    If your advantage is faster delivery, cheaper teams, or more engineers, assume that edge is already leaking. AI compresses time brutally. What differentiated you last year will be table stakes next year.

    Second, effort-based business models are breaking silently.

    Services companies are the first to feel it. Clients will not pay for hours (T&M) once outcomes are predictable. Billing models may lag reality, but not for long.

    This is not a sudden shift, nor are IT majors unaware of it.

    Tech Mahindra has publicly acknowledged that client conversations are moving from input-based billing to outcome-based models, where value is measured in tangible business impact.

    TCS has echoed the same reality, noting that many clients start projects on T&M and then transition to fixed-price or outcome-linked models once value becomes visible.

    Third, junior-heavy pyramids will strain.

    Entry-level roles will not disappear overnight. But hiring will slow. We are already seeing this in the recent quarterly results of Indian IT majors. Expectations from clients will rise. A fresher with AI fluency will outperform a five-year engineer who resists change.

    I see founders making one critical mistake. They are waiting for clarity.

    Clarity will not come. Capability will.

    The winners in the next 24 months will not be the ones with the best AI strategy decks. They will be the ones who redesign how work actually gets done and delivered.

    For services companies, the shift is painful but necessary. You must stop selling people. Start selling outcomes. Build internal platforms. Even if clients never see them. Treat AI as infrastructure, not tooling.

    For SaaS founders, the discomfort is different. Features will get copied faster than ever. Defensibility will move away from clever engineering. It will sit in deep customer context, data gravity, and the cost for customers to switch providers.

    This is also why large SaaS vendors like Microsoft, Google, HubSpot, and Zendesk have been able to raise prices and introduce more complex pricing tiers over the last year. Not because switching is easy, but because it is not. Customers complain, but they stay. That is what real switching costs look like.

    The AI in your product does not defend it.

    Dependency does. AI only accelerates that dependency.

    The real work, then, is not adding AI features. It is figuring out how the AI in your product becomes part of the customer’s daily decision-making. How it embeds itself into workflows, defaults, and judgement. How you go deeper without turning yourself into a services company.

    The question every SaaS founder should eventually reach is not “How do we use AI?”

    It is “How does the AI in our product make it harder for customers to leave us?”

    This is where founder behaviour matters.

    1. If you are not personally using AI daily, you are already late.
    1. If your team uses AI but your processes assume old timelines, you are self-sabotaging.
    1. If your roadmap assumes stable pricing models, roles and skills, it is fiction.

    I am not pessimistic. I am practical.

    Every technology wave flattens something. This one flattens execution advantage. What remains is judgment, trust, and responsibility.

    Founders who accept this early will redesign calmly. Founders who deny it will call it disruption later.

    As Spock says to Bele in Star Trek The Original Series,

    ‘Change is the essential process of all existence.’

    Reflection:

    AI will not kill businesses. Delay will. The next two years are not about prediction. They are about honest redesign.


    👉 If you want to discuss AI for your venture, reach out for a consultation: v@thefoundercatalyst.com

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  • Remembering Louis Gerstner and the Elephant That Learned to Dance

    Remembering Louis Gerstner and the Elephant That Learned to Dance

    I learnt on 27 December 2025 that Louis V. Gerstner Jr. had passed away. That news made me pause. It took me back more than two decades, to a phase when I was still finding my feet as a CEO, and to a book that quietly but firmly shaped how I looked at leadership.

    I first read Who Says Elephants Can’t Dance in the early 2000s. At that time, I was far more comfortable being close to technology than being close to people problems. Management felt like something I had to do, not something I wanted to learn. Gerstner’s book did not try to inspire me with slogans. It simply showed me, page after page, that leadership is about decisions, execution, and an honest understanding of how organisations really behave.

    One anecdote from the book has stayed with me. This is recalled from memory. Soon after accepting the CEO role, Gerstner visited IBM’s headquarters in Armonk, New York. He is stopped by a security guard because he does not yet have an identification card. Even after explaining that he is the new CEO, he is not allowed inside. He later reflects on this moment as a small but telling sign of how deeply bureaucracy had set in at IBM. What struck me was not the incident itself, but his ability to see it as a system problem, not a personal slight.

    By the end of his roughly decade-long tenure, IBM had become a very different organisation. More open. More responsive. More willing to confront reality. The contrast between those two moments says more about leadership than any abstract theory ever could. Culture does not change through speeches. It changes through consistent actions and clear priorities.

    When asked, soon after stepping into IBM, what his vision for the company was, Gerstner answered without flourish or theory. “The last thing IBM needs right now is a vision.”

    As a founder, what I took away from the book then, and what still resonates now, is Gerstner’s refusal to romanticise leadership. He was clear that turnarounds are messy. Those tough calls cannot be delegated. That listening matters, but so does deciding. These are lessons I have carried with me, and ones I have referenced in my own book, The Founder Catalyst, because they remain relevant for founders and CEOs even today.

    In an age where leadership advice is often reduced to sound bites, Who Says Elephants Can’t Dance continues to stand out for its honesty and practicality. I still recommend it to founders who are making the uncomfortable shift from builder to leader.

    Looking back, Louis Gerstner did not try to teach the world how to dance. He simply showed, through his work, that even the largest and most tired organisations can relearn the steps when led with clarity and courage. I realise how much that lesson shaped my own thinking as a founder. My quiet respect to him and to a legacy that influenced many of us more than we understood at the time.