WiseTech and the problem with founder-led B2B brands

Despite what WiseTech Global boss Richard White says, if you can’t separate the founder from the brand, that’s a massive corporate risk. Especially for B2B brands. Tim Riches explains.

In most industries, accusations of multiple inappropriate relationships and ongoing corporate governance concerns are enough to see the CEO shown the door. Which makes the ongoing WiseTech Global brouhaha all the more fascinating.

In case you’ve not been following along, ASX-listed Australian tech company WiseTech Global, with a market capitalisation of $27 billion, is wildly successful. Its flagship product is CargoWise, a platform designed to streamline and optimise global supply chain operations.

Earlier this year, WiseTech’s founder Richard White – who has been quoted as saying, “I am WiseTech” – was forced to step down when a slew of accusations about his conduct came to light. Mere months later, he was reinstated, triggering the resignation of four independent directors and sending shockwaves through the investment community.

Throughout it all, White has remained defiant. His stance? Customers don’t care. WiseTech has the best product on the market – and that, he argues, is what matters.

But in the world of enterprise software as a service (SaaS), and indeed the B2B sector more broadly, that logic doesn’t hold up.

When the founder becomes the brand – and behaves in ways that undermine governance and culture – it creates a reputational risk that product alone cannot offset.

—

Read the full article on Mi3.

Tim Riches is Group Strategy Director and Principal at Principals.

—

Contacts us to learn how Principals can help make your brand a force for positive change.