Speaker & Occasion: At a recent YC event, Brian Chesky delivered a memorable talk.
Impact: Attendees claimed it was the best talk they'd heard; Ron Conway didn't take notes for the first time.
Focus: The talk raised questions about conventional wisdom in running large companies.
Key Themes
Conventional Wisdom Challenged
Advice Given: As Airbnb grew, Chesky was advised to "hire good people and give them room."
Outcome: This advice led to disastrous results, prompting Chesky to find a better method.
Alternative Approach
Study of Steve Jobs: Chesky studied how Jobs ran Apple, leading to better results.
Current Success: Airbnb's cash flow margin is among the best in Silicon Valley.
Common Experience Among Founders
Shared Experience: Many successful YC founders reported similar misleading advice.
Insight: The advice was suited for managers, not founders, creating a sense of dysfunction.
Two Modes of Running a Company
Founder Mode vs. Manager Mode:
Founder Mode: Emphasizes direct involvement and unique founder capabilities.
Manager Mode: Focuses on delegation and treating org chart as modular design.
Problems with Manager Mode
"Professional Fakers": Managerial advice may lead to hiring ineffective employees.
Gaslighting Feeling: Founders feel pressured to conform to traditional manager mode.
Founder Mode Characteristics
CEO Engagement: Likely to involve skip-level meetings, breaking the norm of only engaging through direct reports.
Steve Jobs' Retreats: Held annual retreats for the 100 most important people, not just those high on the org chart.
Unknowns and Discoveries
Lack of Knowledge: Founder mode is not well-documented or understood.
Customization: Autonomy and delegation will vary by company and time.
Predictions and Encouragement
Founder Achievements: Founders have succeeded despite poor advice.
Future Potential: Better understanding of founder mode could lead to greater accomplishments.
Conclusion
Significance: Discovering founder mode fully could revolutionize the way companies are run, akin to Steve Jobs rather than traditional managers like John Sculley.