The Downside of When the Owner Can't Let Go

The decision by designer Theo Fennell to retake control of his eponymous brand (he owns 19 per cent of the company) highlights a problem for any company still run by its founders.

Anyone who has ever worked for a company run by its owners (and I am one of these) knows it can be as much of a hindrance as a boon. Owners cannot help sticking their oar in, whether it is wanted or not.

Much of the time, their unique experience of the company provides the sort of insight you won't get any other way and their standing with customers generally boosts loyalty to the brand. Grudgingly we have to accept they still have lots to offer.

On the other side it's nigh-on-impossible for them to let other people take risks and it's not unusual for their nerve to fail when the company is underperforming as a result of a change in direction, as has happened with Theo Fennell.

Under its new leadership, the Jeweller will move back into its established niche in the higher end of the market as a luxury brand, away from the high street where it was being steered by the previous (co-owner and) chairman and chief executive Richard Northcott and Pamela Harper, respectively.

This decision is probably right in the current climate. The luxury market usually stays buoyant even in the worst of times. Even though the value jewellery market was going stellar on the high street a few years ago, it is not a good place for non-essential offerings at the moment.

One word of warning though, founders who leap in to save their companies may find the role becomes a golden choke-chain (perhaps an idea for a new product line, Theo). As Steve Jobs has found, confidence in Apple's fortunes is now directly linked to his involvement in the company. In a way, he can't leave, even when his health demands it.

Ultimately Fennell will want to leave again, to enjoy the rewards of building up a premium brand but it may be harder to extricate himself than he expects, without the brand faltering again as a result of his departure.

On the other hand, he may want to keep at the helm for life, only to relinquish control when his cold, dead hands are prised from the tiller. Even so, everyone has to move up to the great boardroom in the sky some day.

What will happen to Theo Fennell the jewellery brand â€"- or any other company in a similar situation â€"- when it has to stand on its own two feet?

(Pic: Mark Coggins cc2.0)