In 1997, Michael Dell infamously said if he was in charge of Apple he would “shut it down and give the money back to the shareholders”.

In 1997, Michael Dell infamously said if he was in charge of Apple he would “shut it down and give the money back to the shareholders”.

While the founder of Dell has since eaten those words, you have to remember that at the time Apple had a convoluted product line, it was haemorrhaging money, and co-founder Steve Jobs was only just returning to turn things around.

Over the past 14 years, Jobs has not only made Apple into the world’s most productive retailer in terms of sales densities, but also the most highly valued technology company. So what happens now that the charismatic co-founder is stepping down?

The same question can be posed of Costco, another successful West Coast retailer, which will lose its co-founder and chief executive Jim Sinegal when he retires in January.

Like Jobs, Sinegal has never been your average chief executive. He has always answered his own phone, insisted employees refer to him as Jim and has earned a modest salary. His working class roots and egalitarian approach are well embedded in the Costco business culture.

So will their legacies live on? Absolutely. In Costco’s case, incoming chief executive Craig Jelinek has also worked his way up the ranks starting out as a warehouse manager.

Founders don’t always make the best leaders, particularly as a company grows, but in many cases they are more passionate and knowledgeable than external bosses.

Look how Iceland recovered once Malcolm Walker returned to the helm. Or take John Nordstrom, founder of the US department store chain that bears his name, who recognised that customer service would go a long way in his Seattle shoe stores. Equally, Sam Walton decided that 45% mark-ups, common in rural America in the 1960s, were unacceptable. By focusing on back-end efficiencies, Walmart could offer low prices and the shoppers would flood in.

They are strategies that ring true today; the most successful founders are those with the ability to instil a culture lasting beyond their own tenure.