Companies mistakenly bundle management with authority, forcing top performers onto a management track to gain influence. Separate them. Define management's role as coordination and context-sharing, allowing senior individual contributors to drive decisions without managing people.

Top board member Alfred Lin provides counter-cyclical mentorship. He champions the company during tough times to boost morale and plays devil's advocate during success to prevent complacency. This keeps founders grounded and forces nuanced thinking about trade-offs.

Instead of crushing competent rivals, Rockefeller transformed them into collaborators. He offered them willing partnerships, significant autonomy to run their divisions, and a voice in overall company policy. This created a "company of founders," aligning interests and ensuring that top talent would join him rather than fight him.

Activists can be effective even in companies with dual-class shares or founder control. The mechanism for influence is not the threat of a proxy fight but the power of good ideas and relationships to achieve strategic alignment with the controlling party.

John Elkan's development as a leader was profoundly shaped by his decision to hire outsider Sergio Marchionne to save Fiat. Marchionne not only executed a legendary turnaround but also became a personal mentor to Elkan, demonstrating the value of external expertise in guiding the next generation of a family empire.

The difference between a true partner and an employee is whether you seek their counsel on complex problems. If you consistently go to them for advice when you're unsure, they're a partner. If you only give them direction, they are not a "thought partner," which is a red flag for a C-level executive role.

Experience taught Herb Wagner that great leaders consistently surprise on the upside. He now weights leadership quality far more heavily, assessing CEOs not by interviews or charisma, but by their verifiable track record and through trusted backchannel references who have worked with them directly.

Unlike a functional manager who can develop junior talent, a CEO lacks the domain expertise to coach their entire executive team (e.g., CFO, VP of HR). A CEO's time is better spent hiring world-class leaders who provide 'managerial leverage' by bringing new ideas and driving their function forward, rather than trying to fix people in roles they've never done.