Meditations on Founder Mode
Reflections on Founder Mode from a Leader Perspective
Last weekend, there was a lot of buzz about an article inspired by Bryan Chesky's new approach to running Airbnb by "diving into the details," which Paul Graham called "Founder Mode." The article went viral despite revealing little new information. It caused controversy, with some people loving it and others criticizing it.
While I'm not a founder, I've worked closely with many founders and C-level executives. In this post, I'd like to offer my perspective on this controversial topic, which, as always, does not have to be so binary.
Founder Mode Is Not Against Middle Managers
The term "Manager," as used by Graham in the article, might be confusing because it does not refer to middle managers. Instead, it relates to how C-level or executive directors run large companies, focusing on strategy and delegating authority. The traditional approach is being challenged, with founders often requiring a more hands-on, unconventional approach, which the article calls "Founder mode." This shift in management style highlights the evolving role of top-level leaders in today's business environment, emphasizing the need for adaptability and a willingness to embrace new and unconventional approaches to leadership and decision-making.
Founder Mode Could Be Extremely Effective
Founder Mode is a source of inspiration and motivation. It is effective because it allows founders to leverage their deep understanding of the company and its unique vision and grit to shape and guide. This approach enables founders to address issues quickly, maintain the company's core values, and make strategic decisions that align with the original vision. This mode of operation is optimized for speed, allowing rapid decision-making and growth to lead to better performance and success, as demonstrated by founders like Steve Jobs, who effectively managed large companies without losing startup-like agility and innovation.
Founder Mode Does Not Scale Well
Founder Mode is not easily scalable because it relies heavily on the founder personally being deeply involved at different company levels. As the company grows, it becomes harder for one person to stay so involved. The challenge is that Founder Mode is very effective for smaller, more agile companies. However, it can become too much to handle when applied to a larger organization as the founder becomes a bottleneck. For instance, 37signals founders DHH and Jason Fried can run their company without full-time managers because it's small, and they prefer to keep it that way.
We've kept our company small, sharp, and profitable — on purpose
Founder Mode Could Lead to Burnout
Founder Mode is unsuitable for everyone because it requires an exceptional commitment, vision, and personal involvement that not all leaders can sustain. This approach is best for those with a solid connection to their company. It can directly engage with various levels of the organization, often needing intense dedication, such as working 100+ hours a week, as someone like Brian Chesky probably does. This mode demands a unique combination of passion, stamina, and strategic insight—qualities that not all leaders have. For many, the demands of Founder Mode could lead to burnout or inefficiencies, making it a challenging approach for those who lack the exceptional drive or capacity to manage such an intense level of involvement.
Founder Mode Is Not About Making Top-Down Decisions
Founder Mode isn't about making top-down decisions. Instead, founders are deeply involved in all aspects of the company. They interact directly with employees at all levels and make decisions based on a deep understanding of how the company works. This hands-on approach allows them to maintain the company's core values and vision while quickly addressing issues and opportunities. It's not about micromanaging or commanding from above but about being closely connected with every part of the business, which is why it's different from traditional top-down management. Making top-down decisions without having sufficient context and expertise can harm the organization.
Founder Mode is not about micromanaging or commanding from above but about being deeply involved in every vital part of the business.
Knowing When to Switch Between Modes Is a Superpower
Recognizing when to switch leadership styles is a superpower for founders. Founder Mode is very hands-on and involved and works well in early stages and during critical phases, like during "Wartime." However, it may not be sustainable as the company grows. Knowing when to shift from the Founder Mode to a more traditional management style or finding a balance between the two allows a founder to delegate tasks appropriately without losing control over the company's vision and culture. Switching between these modes ensures the company can thrive without being limited by a single leadership style. Mastering this transition is crucial for long-term success and sets great founders apart.
Outstanding Leadership Is Not a Binary Set of Modes
Effective leadership goes beyond a binary set of modes—Founder and Manager Mode—because it involves a dynamic and adaptable approach to managing a company. Hence, the most impactful leadership often transcends rigid categories, embracing a more nuanced and situational approach. Instead of focusing on founder mode vs manager mode, I would say this:
Hire great people with high agency and extreme ownership.
Spend as much time as possible on the most crucial things.
Reduce information barriers by sharing openly and transparently.
Identify when you must dive into the details vs provide autonomy.
Be open and humble: innovate, experiment, and learn.
Conclusion
Founder mode can be a superpower when used in the proper context and at the right moment. However, when misused, it can lead to catastrophic consequences that can ruin a company.
Leaders who try implementing Founder Mode without fixing first the company culture (e.g., lack of transparency, high agency, or ownership) will harm everyone, including themselves. Similarly, leaders who believe Founder Mode is about micromanaging and having the last word will make wrong top-down decisions, hurting trust and demoralizing everyone.
The key to a leader's long-term success lies in their ability to switch leadership styles and adapt to the specific needs of any situation. Effective leadership requires humility and an understanding that it goes beyond following a rigid set of rules. Instead, it involves adapting quickly to the company's growth and market conditions. Those who can do this will be the ones to succeed.
Please write below with your thoughts on this controversial topic.