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Founder Mode

paulgraham.com

511–520 of 772 posts

Re: Founder Mode

#511
"I also have another less optimistic prediction: as soon as the concept of founder mode becomes established, people will start misusing it."

I have knowledge of how management worked in a Musk company, and this "Mini Me" phenomenon was entirely real. People saw how Elon did things, and tried to emulate him at their level. This almost always crushed team dynamics, and led to the least technically capable making important technical decisions.

Elon (eventually) recognizes bs like this and makes those folks walk the plank; but... the damage is done, and must be un-done. There is a cost to allowing "Mini Me"s outsized influence.

Re: Founder Mode

#512

Much of this hinges on what the company does. AirBnB is basically a web site and a customer service operation. They don't own or run hotels. Netflix started like that, but now they also create content. The web site part is basically operating a server farm with a halfway decent interface. The negotiation with content providers part is crucial to success. Netflix also creates content. That works more like a VC operati…

> Netflix started like that

Netflix started as a disk distribution company.

Re: Founder Mode

#513
I think in the US we are increasingly suffering from credentialism. I think acquiring credentials and appearing to be the best possible person is more game-able than it was previously thought to be. I think Goodhart's Law is becoming apparent. I think credentials could be meaningful but that a lot of people exist just to occupy prestigious space and time but who do not add value. It seems like we're unwilling to admit this could happen.

Re: Founder Mode

#514
Isn't this really just "actually a startup" mode vs. "a growing, professionalizing company" mode?

This footnote was what got me: > [1] The more diplomatic way of phrasing this statement would be to say that experienced C-level execs are often very skilled at managing up. And I don't think anyone with knowledge of this world would dispute that.

I've not founded startups. I just work in them. I'm not even a terribly important worker. AI bots are absolutely coming for my job.

But this is when I know a company has left "actually a startup" mode in the way that I can enjoy it and thrive in it, and when it's transitioned to "a growing, professionalizing company" mode, in which I wish them the best, but GTFO because I hate working in companies like that:

As soon as there are three layers of management between me and the CEO, all of whose roles primarily require them to prove that they are somehow "managing" my work, even though they don't have the first clue how to do my work, the company isn't in its startup stage anymore. It's a whole different kind of company, and not one I choose to stay in. I just go find somewhere else to help get to that stage.

"Professional managers" and "startups" are incompatible. Startups have to be able to move and pivot so fast that there's no use for a "manager" who doesn't actually know how to do the work of those they manage. They're going to be called on to fill in for those people far too frequently. They're dead weight if all they know how to do is "manage."

There is eventually a stage when you want those people, but trying to move to it too early, around your C or D when the VCs are telling you that you should, is fatal. Everyone who made the existing thing good is going to get crowded out by sycophants who don't have the deep cultural knowledge of and commitment to your product. All they know how to do is blow smoke up the right skirts at the right times.

Re: Founder Mode

#515

This fits with most of Warren Buffet's acquisition practice in the last 40 or so years. He switched (mostly) from buying stocks and securities to buying highly profitable, privately held companies with good management in place and doing everything he could to keep them in place. And I remember research from a Stanford business professor about 20 years ago that family run companies on the S&P 500 significantly outperf…

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Re: Founder Mode

#516
I disagree with PGs take away, and would love to hear the talk to find out if I'm the one who is wrong.

"hire good people and give them room to do their jobs." is not orthogonal to running your start-up as a founder...or is it, and I'm doing it wrong?

I'd love to understand where someone like Satya Nadella would fit into this example. He isn't the founder, but he runs the company as if he is, doesn't he? So "founder" isn't the correct description.

I hope a link to the talk is made public, so we can decode what Brian is saying for ourselves.

Re: Founder Mode

#517
This is a false dichotomy I think...

The difference in this case between a "founder" and a "manager" is more about understanding the nuts and bolts of the business and being able to lean on that understanding in ways that require you to cut through the org chart.

Is it surprising that leaders who don't understand a business and aren't willing to engage across the full depth/breadth of the business are less effective than those that try to treat everything as an abstract cashflow machine?

Re: Founder Mode

#518

Earlier quoted context omitted.

Honestly, the people that put in these processes are the smart ones. Useless as they are, they do climb the ladder, get good titles, and good pay.

You're right. People here will deny it, but who is smarter: someone who attends cushy meetings all week and gets paid millions, or someone who burns themselves out hacking away at code 80 hours a week making $200k a year? Congrats, you are very smart and know how to manipulate symbols real good. Try cashing that check at the bank.

This so much. The hacking and coding doesnt matter, nobody really needs a 10x engineer. Well capitalized startups can just go hire 5 more engineers if they need to. I wish when i was younger i could have just accepted this

Re: Founder Mode

#519
Professional managers (aka not the founder, climbed up the corporate ladder the old fashioned way): Tim Cook (apple), Satya Nadella (msft), Sundar Pichai (Google), Arvind Krishna (ibm), Shantanu Narayen (adobe), Dara Khosrowshahi (Uber), Lisa Su (amd) and on and on. Just scan the Fortune 500 for tech companies and it’s nearly all professional managers. The YC audience could have debunked this Founder Mode nonsense in just 10 minutes on Wikipedia, as I did.

Most professional managers are BS artists. Perhaps Chesky hired of bunch of those. The conclusion is not to run everything yourself, but maybe hire better managers.

Re: Founder Mode

#520
I think it’s still undecided if Airbnb is a force for good or a force for evil in the world.

A lot, I mean a lot of people with middle incomes have bought desirable homes in nice locations and rent them out. There are many aspiring families, young couples priced out of the market because of this.

Sure, this option was always a thing but the people who rent these properties out do not improve the community or unit they purchased and they rent out to anyone. This weekend a Airbnb guest kicked my door front door open. I pulled a gun on him and he apologized and said he was messing around but I wouldn’t have to deal with this if I didn’t live near short term rentals.

Hotels needed a check to their power but I’m not sure if 15 years from now Airbnb will have been good for the median person. It sure helps the wealthy however.

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