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How a startup loses its spark

blog.johnqian.com

51–60 of 287 posts

Re: How a startup loses its spark

#51
post #49

Earlier quoted context omitted.

Let's keep sci-fi worlds designed to make a good story out of serious discussion, please. Or let me raise a The Culture argument, where computers/AI is hyper-advanced, AIs are friends, and no regulation whatsoever is needed.

Fair, not the best example of regulation countering the tragedy of the commons, because it's just made up. Unfortunately, any real world examples I can think of (nature preservation, gun control, ...) are seemingly controversial.

What even is the specific tragedy of the commons in this case?

I mean real, observable things, not theories.

Re: How a startup loses its spark

#53

> Is this preventable? I think not. If you look closely, all these problems fundamentally come from… It is preventable. I built an ISP in mid-90s, a digital agency in late 90s, another digital agency and a streaming CDN (world's first VDN) in 00s, as well as worked as chief architect for cloud at world's largest hedge fund and CTO of world's second largest bank. I'm currently an entrepreneur again, co-founding and bu…

> Instead of controlling for budgets and delivery dates, control for focus and outcome value. Then you can manage the money as investments in teams delivering outcomes, instead of budgets for projects. Maybe if you sell to end users. If you have clients with SLAs, requirements etc and legal penalties for missing them, not working to delivery dates isn't going to work. Even in teams with projects, ensuring deadlines a…

See my sibling reply on projects versus time-boxes and CI/CD of outcomes:

https://news.ycombinator.com/item?id=37100090

Telling me "it isn't going to work" is why I call this approach "heresy".

By contrast, I've observed across every size firm from 1 to 150,000, it does.

Re: How a startup loses its spark

#54
I'll raise your spark for complete destruction.

Here's an incomplete list that I keep around of the mechanisms that I've observed so far that have played a big part in the decline/destruction of an engineering team (and product thereof):

1. Too-technical leaders:

As startup scales, there can sometimes be a mad dash to fill new leadership roles (e.g. VP of Eng, Arch, CTO, etc.). Super-star engineers present at startup phase sometimes move into these when they are not the leadership type, causing engineering team to devolve into a visionless, directionless zoo.

2. Non-technical leaders:

Inverse to the above - as startup scales, in desperation, new leadership roles are filled with non-technical individuals who have little to no engineering experience. This causes similar outcome to #1 (albiet slightly different, but equally perilous).

3. Problem engineers:

Small number of leaders lack a spine, conducting shallow interviews and let in "problem engineers" who spoil the party and wreak havoc. Lax hiring practices almost always are reflected into non-existent firing practices, leading to them lingering around.

From experience, it only takes around ~5-10% of a team being this type for it to have a large negative impact, as they tend to derail progress, dodge responsibility, reputation farm, push rubbish, all that nonsense. It harms morale, and the skies turn grey in the office...

4. Micromanagement:

Speaks for itself. Leads to red tape, demoralization, timeline slippage and frustration.

EDIT: I'de love to hear how these foot-guns have been avoided. From experience it seems really challenging, as if like magic; as if cultivating and maintaining a good engineering team and culture therein is like balancing a pencil on it's nib...

Re: How a startup loses its spark

#55
Ok, so a simple solution is to compose your larger company of a bunch of startups that remain to operate as such, no matter what the larger company does. So anything that runs on top of these startups acts as a customer of these startups.

Re: How a startup loses its spark

#56
post #9

It almost feels like the "efficiencies of scale" you get from large organisations (e.g. specialised people for recruitment, people matters, quality assurance, user research etc.) are not really efficiencies. Perhaps it's better to grow the organisation by repeatedly cloning the smallest effective team you ever had, rather than creating a more "efficient" organisational structure. How those "mini-companies" communicat…

That's what the mobile game studio supercell did initially (hence the name): divide the company into a bunch of 15-25 person indie studios.

It also eventually became a monolithic org.

Same with Valve and flat org structures.

Once something scales enough it becomes the blob, like everything else.

Re: How a startup loses its spark

#57

Earlier quoted context omitted.

Do you have an example you're thinking of?

I'm currently consulting for a logistics/wholesale company that uses AI to massively cut down on product catalog management and vendor/customer support costs. Their services are now affordable to much more vendors. It's been a month or so in production and they have already onboarded many new SMB vendors who previously didn't have the means to pay for their services - and thus couldn't sell nor ship through my client…

Thank you - that's a super interesting example.

Re: How a startup loses its spark

#58

Earlier quoted context omitted.

Do you have an example you're thinking of?

See the last 300 years of recorded history of technological progress.

AI has been around for the last 300 years of recorded history of technological progress? Or is every piece of technology guaranteed to make life easier? Did the slap chop markedly improve people's lives?

I understand theirs optimism (and pessimism), but optimism in and of itself doesn't make something true.

Re: How a startup loses its spark

#59

I disagree - as someone who has started up small companies and worked in megacorps, including FAANG and major banks, it’s entirely possible to build that intoxicating environment anywhere. It’s more about having a dynamic leader who assembles teams into collections of individuals who know precisely why they are there - and are given the work they excel at and the work they don’t the manager ensures someone who does h…

I am the most senior engineering IC by position and years of experience at my current company in a 100+ person engineering group. The only problems I deal with are non technical and organisational in nature, despite on paper being expected to code 30 percent of the time.

Re: How a startup loses its spark

#60
post #9

It almost feels like the "efficiencies of scale" you get from large organisations (e.g. specialised people for recruitment, people matters, quality assurance, user research etc.) are not really efficiencies. Perhaps it's better to grow the organisation by repeatedly cloning the smallest effective team you ever had, rather than creating a more "efficient" organisational structure. How those "mini-companies" communicat…

I agree and this is a practical method that I've seen work well in several companies I've worked for. However I think there's a bigger problem that contributes to the loss of "spark" that the author strangely didn't address at all.

The fruits of labor grow ever higher. By which I mean: In the early days of a startup the problem space is ripe and plentiful, the impact you can have is outsized, and the pool of people with which to share it is the smallest it will ever be.

As a company grows, all three of these factors are subject to strain. The problem space becomes sparser, outsized impacts are recognised further up the ever-growing hierarchy, and the pool of people with which you're sharing your impact becomes larger and recognition becomes shorter lived and more diffuse.

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