It’s hard to go a few days without a new trend emerging online, and this trend seems to be at the intersection of LinkedIn and Twitter, a place where VCs and tech bros come together to find new ways to make life less fun. The latest term is “Founder Mode,” which inspires us to live life like this Steve JobsAll jokes aside, the term was popularized by programmers and writers Paul Graham Who is known for his influential essays and books on technology and start-ups.
Graham writes: “At last week’s YC event Brian Chesky gave a speech that everyone who was there will remember. Most of the founders I spoke to afterward said it was the best speech they had ever heard. Ron Conway, for the first time in his life, forgot to take notes. I’m not going to try to repeat it here. Instead I want to talk about the question it raised.
The theme of Brian’s talk was that the conventional wisdom about how to run large companies is wrong. As Airbnb grew, well-meaning people advised him that he had to run the company a certain way in order for it to scale. Their advice could be optimistically summarized as “hire good people and give them a chance to do their jobs.” He followed this advice and the results were disastrous. So he had to figure out a better way on his own, which he did in part by studying the way Steve Jobs ran Apple. So far it seems to be working. Airbnb’s free cash flow margin is now one of the best in Silicon Valley.”
installer modeAccording to Graham, it refers to a specific way of running a company that is different from the traditional way.manager mode” is commonly taught in business schools and followed by professional managers. According to Graham, conventional wisdom suggests that as startups grow, their founders should adopt a more non-interventionist, managerial approach: hire good people and give them the autonomy to do their jobs. However, this advice often leads to poor outcomes for founders because it ignores the unique strengths and instincts that founders bring to their companies.
Graham argues that the approach for founders – which he calls “founder mode” – allows them to remain deeply involved in the company’s operations, breaking away from traditional management styles that discourage such involvement. In founder mode, leaders are more hands-on and involved in the details, even engaging in “skip-level” meetings where they interact directly with employees at all levels, rather than just their direct reporters. This approach is more aligned with the founder’s vision and values, and often results in a more cohesive and inspired company culture,
Essentially, the Founder Mode adopts the idea that founders should leverage their unique position and insight to actively guide their companies, rather than adopting the more detached style of hired managers. Graham suggests that this way of operating is more effective for startups, as evidenced by success stories of founders who resisted changes to traditional managerial styles and instead developed their own ways of leading.
Founder Mode in 10 points:
Graham writes: “At last week’s YC event Brian Chesky gave a speech that everyone who was there will remember. Most of the founders I spoke to afterward said it was the best speech they had ever heard. Ron Conway, for the first time in his life, forgot to take notes. I’m not going to try to repeat it here. Instead I want to talk about the question it raised.
The theme of Brian’s talk was that the conventional wisdom about how to run large companies is wrong. As Airbnb grew, well-meaning people advised him that he had to run the company a certain way in order for it to scale. Their advice could be optimistically summarized as “hire good people and give them a chance to do their jobs.” He followed this advice and the results were disastrous. So he had to figure out a better way on his own, which he did in part by studying the way Steve Jobs ran Apple. So far it seems to be working. Airbnb’s free cash flow margin is now one of the best in Silicon Valley.”
installer modeAccording to Graham, it refers to a specific way of running a company that is different from the traditional way.manager mode” is commonly taught in business schools and followed by professional managers. According to Graham, conventional wisdom suggests that as startups grow, their founders should adopt a more non-interventionist, managerial approach: hire good people and give them the autonomy to do their jobs. However, this advice often leads to poor outcomes for founders because it ignores the unique strengths and instincts that founders bring to their companies.
Graham argues that the approach for founders – which he calls “founder mode” – allows them to remain deeply involved in the company’s operations, breaking away from traditional management styles that discourage such involvement. In founder mode, leaders are more hands-on and involved in the details, even engaging in “skip-level” meetings where they interact directly with employees at all levels, rather than just their direct reporters. This approach is more aligned with the founder’s vision and values, and often results in a more cohesive and inspired company culture,
Essentially, the Founder Mode adopts the idea that founders should leverage their unique position and insight to actively guide their companies, rather than adopting the more detached style of hired managers. Graham suggests that this way of operating is more effective for startups, as evidenced by success stories of founders who resisted changes to traditional managerial styles and instead developed their own ways of leading.
Founder Mode in 10 points:
- Active ParticipationIn “founder mode” founders remain deeply involved in all areas of their business, especially during the early stages. This is different from the common practice of delegating responsibilities to managers, as seen in “manager mode”.
- Fast decision makingQuick decision making is preferred in the founder mode, avoiding the bureaucratic delays that occur in larger companies. Founders are expected to make quick decisions to adapt strategies as needed.
- Preservation of vision and cultureFounders actively work to shape and protect the company’s vision and culture, and ensure alignment with the startup’s core goals and values.
- Direct communication channelInstead of following strict hierarchical structures, founders connect directly with different levels of the organization. This includes “skip-level” meetings, where founders communicate directly with lower-level employees, bypassing direct reports.
- Challenging conventional wisdomFounder mode often involves pushing back against traditional management advice, which may not suit the startup’s unique needs. Founders are encouraged to rely on their own judgment and experiences rather than relying solely on outside expertise or traditional practices.
- Promoting innovation and flexibilityBy staying closely connected, founders can create an environment that fosters innovation and adaptability, which is crucial for startups dealing with rapid changes and uncertainty.
- Scaling ChallengesOne challenge of the founder mode is its potential inefficiency as the company expands. The hands-on approach that works well with a small team can become a hindrance in larger organizations, requiring adjustments or a shift to more scalable management methods.
- building trust and transparencySuccessful Founder Mode requires developing a culture of trust and open communication within the team. This helps avoid the pitfalls of micromanagement and ensures everyone is aligned with the company’s objectives.
- Balance between participation and delegation: While staying deeply involved, founders must also learn to delegate tasks effectively to avoid becoming overwhelmed or hindering the company’s growth. The balance between involvement and delegation will vary from company to company and evolve as the business grows.
- Evolving role with technological advancement: With the advent of AI and new management tools, the need for a hands-on, high-intensity leadership style may change. Future leadership may blend the active involvement characteristic of the founder mode with the efficiencies offered by AI-driven processes.
