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How a startup loses its spark

blog.johnqian.com

111–120 of 287 posts

Re: How a startup loses its spark

#111
> Talking to users is for PMs, silly!

I particularly don't understand why an organization would hire a PM for an internal infra team. It's like hiring a PM for Go to design the features of Go. Funny enough, executives from Google love to do this kind of things. I'd thought Google's infra engineers would be perfectly capable of driving the features of their infra services.

Re: How a startup loses its spark

#112
post #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…

That's a great taxonomy of foot-guns! As to how they can be avoided, I can only describe some of what has worked for us so far, with the caveats that we are still small (~60 employees); that none of this is formulaic or perfect; and that there are many reasons why what we have done might not work for others -- or may not work for us as we get larger! That said, here is some of what has broadly worked for us:

1. Writing-intensive hiring process

This is controversial for some, but I have the personal advantage of having previously made The Worst Hire of All Time -- one that forced me to accept that using resume + interviews as the sole (or even primary) criteria left me extraordinarily vulnerable to Problem Engineers. We ask candidates not just for a portfolio of their work (and analysis samples and so on), but also ask them values-based questions[0] -- the answers to which are astonishingly revealing. Our review of candidate materials constitutes the bulk of our hiring process.

2. Transparent compensation

Another one that is surely controversial, but in my professional experience, an amazing number of anti-patterns arise from the scramble compensation -- and usually not for itself per se (that is, not for the marginal dollars), but rather for what it represents in terms of validation, power and so on. Making compensation transparent forces some measure of organizational health -- to say nothing for the bright light it shines on any institutionalized inequities.

3. Uniform compensation

One that even more people will find controversial. ;) When we wrote our blog piece on this 2+ years ago[1], we assumed that it wouldn't last as long as it has -- but it honestly is more important to us now than ever before. Especially as we go to expand the team with roles that are often less well compensated (e.g., customer-facing roles), the fact that we explicitly compensate them as well as everyone else allows us to attract extraordinary folks to the company. We still don't know if this is going to last forever, but we have seen so many incredibly benefits from it that we have stopped burdening it with asterisks.

4. Very, very careful hiring

We are deliberately lean. We add people to the company very carefully, and we have no one inside the company who is incentivized by the size of their team (see #3, above!). When we add people, we keep a sharp eye on versatility and intrinsic motivation. This allows us to do more with relatively fewer people -- helping us avoid the foot-guns you've outlined. That said, it is also not without side-effects: a consequence of this is that we are extraordinarily selective, which means we have many more people that want to work at Oxide than we can reasonably accommodate -- and it can be really, really hard to turn down someone who you think will likely be successful!

[0] https://docs.google.com/document/d/1Xtofg-fMQfZoq8Y3oSAKjEgD...

[1] https://oxide.computer/blog/compensation-as-a-reflection-of-...

Re: How a startup loses its spark

#113
Startups lose their spark when they either:

1. Go from "more to gain" to "more to loose" thinking.

2. Growth slows and either ethics or vision are sacrificed.

Both of these are natural, and the people will have to change. In most companies, eventually growth stops (at least growth driven by the original vision). Eventually you really do have more to lose than gain. The signal these transitions are happening can be spotted by proliferation of guardrails and process controls, and a cultural change towards risk aversion. The drive is to make everything predictable, controlled and safe. The focus is no longer on acceleration, and is on momentum.

Re: How a startup loses its spark

#114

Earlier quoted context omitted.

Maybe by avoiding fast scaling, which implies avoiding VC money.

The first startup I worked for was a slow-growth company that had slowly expanded over 7 years to only about 50 people. A dinosaur in startup terms. It still had the same problems as above. Expanding slowly doesn’t automatically protect you from these things.

Are you being sarcastic? To grow to 50 people in 7 years is probably only for the top 5% successful startups.

Re: How a startup loses its spark

#115

Earlier quoted context omitted.

As a corollary of these people problems, I would add: 1. Not correcting problem hires fast enough. First time founders are often too hesitant to give negative feedback, demote a too-technical manager who should have stayed an IC, or remove a problem employee who isn’t working out. The anecdote that comes to mind is a local startup that hired a C-level executive’s UI designer friend into their VP of Product role. He w…

Ray Dalio talks about this in his book "Principles." The specific advice he offers is "hire slowly, fire quickly."

Terrible advice (from a broadly terrible book, I hasten to add). The reason that this is terrible advice: if you "fire quickly", it is because something is either grievously wrong (a mishire) or you are firing based on limited evidence. If the former, you have a hiring problem, not a firing problem; if the latter, you will generate a fear-based culture. Now, if you're running a prison, a fear-based culture may be exactly what you're after -- but fear is anathema to innovation, and if your endeavor requires any creativity whatsoever, you should be seeking to build mutual trust, not foster institutional fear.

Re: How a startup loses its spark

#116
post #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…

Here's an idea I've seen work: stop assuming people over 35 aren't a good fit for a start up. People who've been in leadership for a while but have the chops and in their day did on the ground work, and who can - given enough time and guidance - understand the minutest detail of a new tech stack or financial maneuver, command the respect of the super stars doing the day to day for their contribution of far seeing leadership.

Re: How a startup loses its spark

#117
Another failure mode: Not being allowed to choose who you work with.

Early on, you joined the company knowing exactly who you get to work with. You were probably involved in hiring for a while too.

But at some point 100+, you’re put on a team with people you’d never met, never hired, and might not vibe with.

A direct, “let’s hit the ground running” attitude runs up against a ex-FAANG person with softer personality, prefers a “compliment sandwich”, and wants to write a 50 page technical specification before getting started.

Re: How a startup loses its spark

#118
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…

Adding people/roles can be beneficial when it frees other people from onerous or distracting work. When it increases onerous or distracting work for everyone else, that's a problem. To a large extent, the art of managing growth is finding ways to liberate everyone instead of handcuffing them.

Re: How a startup loses its spark

#119
post #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…

Im seen as a problem engineer even if its never my intention.

Im a bit anxious and introverted and thus like to get my part done and focus on other things.

This always results in rest of the team losing will to go far and beyond.

I dont know what to do about it, beside aknowledging it exists.

Do you say that ppl like me should simply quit and go working at sewege?

I dont think I like that idea. So what can I do if thats just how I am ? I cant seem to change how others see ppl like me.

Re: How a startup loses its spark

#120
post #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…

One thing I'll add - or maybe it expands on too technical of a leader - is when a brilliant outside hire is brought in to fill the arch/principal/whatever role.

Then they start looking at the app and questioning every decision calling everything they don't have context on "technical debt"

I've seen it a few times. I told a new VP of Eng he was being asinine because he wasn't there for the original problem, decision, or timeline and saying we made a bad call is just showing ignorance.

Thankfully, He pulled me aside later to thank me and asked for more background on it. After hearing the whole story he agreed. We did the right thing.

Now, that could have gone the other way. And I've seen it happen. When it does, it sucks.

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