West Melbourne local publishes new business book

Long-standing West Melbourne resident and 2024 City of Melbourne election candidate Lawrence Lam has published his first book The Founder Effect revealing the psychological blueprint behind founder-led companies.

Mr Lam, a West Melbourne local since 2007 and managing director and founder of the funds management firm Lumenary Investment Management, specialises in strategic investments in global founder-led companies and is highly regarded in the industry. 

With two decades of experience in global financial markets, he is a regular writer for investment magazines including Money Management, Livewire and for the Australian Investors Association. 

And now, as of January, he is now the author of his very own book.

According to Mr Lam, The Founder Effect cannot be labelled a usual business book but as a proven framework for understanding the psychology of business success. 

“It's a book about business psychology to really answer the question, how do I tell if a management team is going to be exceptional? And I answer that by going through a lot of psychological concepts,” Mr Lam told North West City News. 

Chemist Warehouse chairman and co-founder Jack Gance reviewed Mr Lam’s book and said that it broke “away from conventional business theory, offering a deep dive into the out-of-the-box entrepreneurial mindset.”

“It is unconventional in the sense that I try to answer the very qualitative question, how good a team is in an objective scientific framework to identify traits,” Mr Lam said, adding that he had sought to break down how to evaluate leadership, separate progress from marketing hype, and spot opportunities for exponential growth.

In detail, his work answers questions like; what makes some founder-led companies thrive where others stumble? Or how do executives and board directors make smarter, more profitable decisions over the long term? 

For his framework, Mr Lam drew on real-world case studies from top global and Australian brands including LEGO Group and Hermès and focuses on founder-led companies.

“It is about founder-led companies, but not only. But it is just that the founders often have more freedom and the ability to solve their problems creatively,” he said. “And some even dedicate their lives to the business.”

His book, which took two years to complete, is divided into three parts – judgment, alignment and influence – that are based on his three-pillar approach to evaluate a company's track record and identify the true potential of executive management teams.

“The first is about being able to make bold decisions, the second about psychological ownership you want to see in the management team and the third thing is influence,” Mr Lam said. 

“Can the management team influence the market? Do they have media presence?”

He added that he was especially interested in helping with sustainable growth for decades, not just years. 

It’s a difference in mindset. People that want something to continue in their name beyond just their lifetime, that is a rare quality, but it makes you think about business in different ways. You focus on building for the long term and invest in a project that would be very costly in the short.

Lululemon founder Chip Wilson said the The Founder Effect was “a must-read for anyone looking to understand what sets top leadership apart.” 

Helping local businesses maximise their potential in West Melbourne was also something Mr Lam said had been one his biggest drivers for running in last year’s City of Melbourne elections and encouraged anyone to reach out for advice. 

“I want to answer questions that people have, so I encourage anyone to let me know if there are questions on one’s mind. And maybe then, there will be a second or third book.” •