Founder Coaching vs Fixing: How Leaders Accidentally Limit Team Growth

Founders are wired to solve problems. It is one of the traits that helps them build companies in the first place. Yet the same instinct that drives early success can quietly limit team growth as the business scales. Psychology research shows that when leaders step in to fix problems instead of coaching through them, they unintentionally reduce autonomy, weaken confidence, and slow the development of the people they depend on most.

This pattern shows up across the companies we work with at Founded Partners. A founder sees something going off track, steps in to correct it, and the immediate result improves. But the long term effect is the opposite. The team does not learn, the founder becomes the bottleneck, and the culture begins to rely on crisis driven intervention instead of shared ownership. Most leaders do not recognise this dynamic because on the surface it looks like they are helping.

Here is what the science says.

Transformational Leadership Theory explains that leaders motivate and grow their teams through four behaviours: modelling expectations, communicating purpose, encouraging new ways of thinking, and supporting people based on their individual needs. Researchers Bernard Bass and Bruce Avolio emphasise that coaching falls under individualised consideration. It is not a soft skill. It is one of the core mechanisms that build capability inside a growing company. A founder who jumps straight to fixing a problem may be strong in modelling and inspiration, but weak in the behaviours that actually develop others.

Studies on psychological safety, especially from Amy Edmondson and others, show that people learn more when they are allowed to experiment, think aloud, and make small mistakes without being overshadowed by a dominant expert. When a founder steps in with the right answer, the team treats that as a signal that creative risk is unsafe. They default to waiting for instructions. This kills innovation and initiative.

The New Psychology of Leadership further explains that people follow leaders who help define what “we” stand for. If the founder begins solving every issue, the identity that forms inside the team is simple. We follow the founder because only the founder can fix things. This erodes confidence and reduces team driven problem solving.

In our advisory work, we often see a specific blind spot. A founder believes they are empowering someone by giving them full autonomy. In practice, they are offering a type of “sink or swim” independence without structure, clarity, or coaching. Research on adult learning and expertise development shows that autonomy only works when paired with the right level of guidance. Without that, people feel pressure rather than ownership.

The fix is straightforward, but it requires intention. Founders need to shift from crisis solving to leadership coaching. Here are practical steps you can apply right away.

Signal learning, not perfection. Before offering solutions, ask questions like: “How are you thinking about this?” or “What options have you already considered?” This moves the conversation from performance to learning.

Avoid taking the work back. Even if you can do it faster, resist the urge. If you must step in, treat it as a teaching moment and hand it back as soon as possible.

Break the problem into levels. Make clear what decisions the person owns, what decisions they should bring to you, and what success looks like. Autonomy requires clarity.

Offer coaching that fits the person. Some people need structure and check ins. Others need space and encouragement. One size does not fit all.

Slow down your response. A short pause before answering or intervening gives the other person room to think. It also trains you to shift from execution to leadership.

Share your reasoning, not just your answer. Explaining how you arrived at a decision teaches your thinking process, which is more valuable than the decision itself.

Reinforce effort and insight, not only outcomes. This builds confidence and keeps the focus on growth rather than fear of mistakes.

Create a culture where people can think aloud. Coaching thrives in environments where people feel comfortable working through ideas before they are polished.

When founders learn to coach instead of fix, the entire organisation benefits. Teams gain capability, the founder gains bandwidth, and the company gains resilience. Most of all, people feel trusted and supported in a way that strengthens commitment and performance.

This shift is not about doing less. It is about leading in a way that builds others rather than replacing them. That is how you scale yourself. And it is how you build a company that can grow without depending on you to solve everything.