Live data from Hacker News

Founder Mode

paulgraham.com

731–740 of 772 posts

Re: Founder Mode

#731

Earlier quoted context omitted.

all this implies trust in the management team, right? to tell Bezos that it's really solved. The opposite of what the essay is arguing, that these managers tend to be fakers and can't be trusted.

Except it doesn't sound like his style was to "trust the management team to tell him that it's really solved". It sounds like his style was to "dive deep" and make sure the problem was solved. If you put in the work and understand the business deeply enough, nobody's going to successfully bullshit you.

Come on. There is no way CEO of a huge company like Amazon can really know every detail. At some point he’s gonna just have to trust someone at the company.

Re: Founder Mode

#732
post #709
post #701

Earlier quoted context omitted.

Really interesting response. So if hiring from the outside isn't ideal and promoting from within isn't ideal, what is the solution? Going back 3 years ago, what would you have done instead?

What ended up working was hiring a Sales Manager instead of a VP. The lesser title attracted candidates who were happy to take direction from founders, and the founder still stays in the “head of sales” seat. Once the sales manager is ramped up, grow as much as possible then bring a VP to oversee it all, but with a larger team already in place it will be harder for them to mess up what’s working.

Thanks! That totally makes sense when you think about it.

Re: Founder Mode

#733
Founders are also inventors, learners, and path breakers. So, as a founder you understand your business and engineering behind it; that's why you can pull it back - more often than not - when things go bad. I don't think a professional manager would have given a new lease of life to Apple with iMac, iPod and iPhone. Zappos had a similar story regarding Pivot.

Re: Founder Mode

#734
I don't think there's such thing as a founder "mode", just good founders and shit founders, and anyone who thinks they can turn it on and off is definitely a shit founder.

Re: Founder Mode

#735

Crush your faking employees is the advice of the day. Founders are superheroes who can do no wrong and miss no context! Founders favoritism leading to being in an in-crowd never attracts faking employees, and the founders can famously always tell! Never heard the nonsense idea that it’s good or frequent advice to step back and let people do their thing in a startup.

Strawman comment

Its a series of strawmen that make up the blog I'm replying to - no counterforce was given to the benefits of "founder mode" so I'm making those arguments.

Re: Founder Mode

#736
I think founder mode is related to the Theory of Constraints[0]. When a founder is already successfully growing a company, they have experienced pushing past many different constraints/bottlenecks of their company. Usually this includes some understanding of the constraints of their industry or they wouldn't have founded a company. Most manager mode advice will be irrelevant to the current company constraint, but can take resources away from solving that constraint. The founder can draw on the knowledge of past constraints and focus on what is important for the company.

For all his problems, my example of this would be Elon Musk and SpaceX. He learned about the space industry and identified the constraint keeping the space industry down. Every launch provider was trying to maximize the performance of their rockets. To maximize performance each rocket was basically a bespoke work of art, this made rockets expensive, which lead to high costs, which reduced the number of customers. Musk chose to make a rocket that did NOT maximize performance, instead focused on reducing the cost of each launch. The most expensive part of a rocket are the engines, so SpaceX focused on making Merlin engines at low cost. Rockets are expensive, why are they thrown away? To maximize performance. Since SpaceX had already abandoned maximizing performance at all costs, the opportunity to reuse rockets became clear. Use leftover fuel margin to attempt to land and reuse the rockets.

Once Musk believed SpaceX's reuse was going to work. He moved onto a new major constraint, customers. SpaceX did not and does not have enough customers for the launch volume they are able to support. They looked at the opportunities and decided that a large constellation of satellites providing fast internet access in LEO would be profitable if launches were now cheaper. So SpaceX created Starlink to take up launch volume.

[0] https://en.wikipedia.org/wiki/Theory_of_constraints

Re: Founder Mode

#737
post #723

Earlier quoted context omitted.

I'm talking about maximizing my dollar per mental processing unit ratio. I think that's kind of the gist of what being smart is in this thread. Get more money, reduce mental overhead, or both. "I'm so much smarter than them." "Well they have a yacht and 3 homes." Who used their smartness better?

Why are you equating being smart with being rich? Those two are not the same

Because SV bubble devs already in the 1% making a shit ton of money, whining about being smarter than the C levels making 10x their salary is hilarious to me.

Re: Founder Mode

#739

Earlier quoted context omitted.

Except it doesn't sound like his style was to "trust the management team to tell him that it's really solved". It sounds like his style was to "dive deep" and make sure the problem was solved. If you put in the work and understand the business deeply enough, nobody's going to successfully bullshit you.

Come on. There is no way CEO of a huge company like Amazon can really know every detail. At some point he’s gonna just have to trust someone at the company.

You’d be surprised—the founder of a huge company like Amazon is likely to be an outlier in terms of how many details he actually can know. The more you learn about the biographies of exceptional leaders the more you realize that many of them actually had a hard, concrete understanding of what their organizations did that often exceeded that of the people who actually did the work on a day to day basis. But part of being a founder is that by the time the company outgrows what you can personally keep track of, you’ve cultivated a core of people around you whom you’ve thoroughly vetted as trustworthy.

Besides, the goal here is not that Bezos knows every detail; it’s that he knows enough of the details that a subordinate isn’t going to be able to bullshit him. And once he has trusted subordinates with a long history of not bullshitting him, he can offload some of the “understanding details” to them, so however difficult it was to try and bullshit Bezos, it’s going to be even harder to bullshit a team of Bezos and a trusted lieutenant.

And ultimately you can develop a skill or a technique for not being bullshitted even without knowing any of the relevant details ahead of time. Just as there are techniques to bullshitting a person, like handwaving and glossing over inconsistent or inconvenient details, there are also counter-techniques for not letting people bullshit you, like demanding all of the inconvenient details that people seem to be glossing over or trying to hide.

Re: Founder Mode

#740

I grew up seeing founder mode first-hand. My dad founded Celestron, and he operated just as Paul is describing. At my current company, I see the CEO doing the exact same thing, which gives me great hope. Huge contrast from my previous start-up, for which I have great anti-hope unfortunately. (Current company is Zap Surgical Systems, with Dr. John Adler as the founder.) I've seen John everywhere, all day every day. I'…

I don’t believe it is that mysterious or revolutionary. What PG is describing is the “optimization of local maximum” problem. Founders focus on the strategic goal. Managers focus on tactical goals. Rules and processes are put in place to efficiently achieve these tactical goals. The problem is, in certain situations, these local process are at odds with the broader goal. Only the Founder has the authority to break th…

This is a great example, truly https://youtu.be/8xjCX_TXkyU
Post reply on HN