The Two Modes of Running Companies

This article delves into the contrasting approaches of running companies - Founder Mode and Manager Mode. It argues that the conventional wisdom about scaling companies, often touted by experienced managers, can be detrimental to the success of startups.

• Founder mode is characterized by a hands-on, deeply involved approach, often associated with founders like Steve Jobs.
• Manager mode, on the other hand, emphasizes delegation and a more structured hierarchical approach.

Silicon Valley's Misguided Advice

The article highlights how many founders in Silicon Valley have been misled by advice advocating for a manager-style approach to scaling their companies. This advice often leads to disastrous outcomes, as founders find themselves hampered by the limitations of a hierarchical model.

The Limitations of Manager Mode

Manager Mode, as described in the article, relies heavily on treating departments as "black boxes" and delegating tasks to direct reports. This approach, while seemingly efficient, can hinder the company's agility and innovation.

• It often results in hiring professional "fakers" who lack the passion and vision of true founders.
• It can create a disconnect between the CEO and the company's core operations.

The Rise of Founder Mode

The article posits that Founder Mode is a more effective approach to running companies, particularly in the early stages of growth. It cites the success of individuals like Brian Chesky of Airbnb and Steve Jobs as evidence of its efficacy.

• Founder Mode involves a greater degree of involvement by the founder, who acts as a driving force for innovation and direction.
• This model allows for more flexibility and adaptability, enabling companies to navigate the unpredictable landscape of the startup world.

Exploring the Traits of Founder Mode

The article examines the key characteristics of Founder Mode. It suggests that this approach often involves more direct interaction between the CEO and employees, even those not in their direct reporting chain.

• It emphasizes a closer connection between the founder and the company's culture and vision.
• Founder Mode can involve unconventional practices, such as Steve Jobs' annual retreats with the company's most critical personnel.

The Challenge of Balancing Founder Mode and Scaling

The article acknowledges the inherent challenge of balancing Founder Mode with the demands of scaling a company. It emphasizes that delegation is inevitable but highlights the need for a more nuanced approach.

• Delegation in Founder Mode should be strategic, with founders carefully selecting those entrusted with key areas.
• The boundaries of autonomy and the level of involvement by the founder will likely vary based on the company and its stage of growth.

The Importance of Founder Mode for Innovation

The article concludes by emphasizing the vital role of Founder Mode in driving innovation and fostering growth. It argues that companies can achieve greater success by embracing this approach and empowering founders to lead with their unique vision.

The Potential Misuse of Founder Mode

While the article advocates for the advantages of Founder Mode, it also cautions against its misuse.

• Founders might use Founder Mode as an excuse to avoid necessary delegation, potentially hindering the company's progress.
• Managers might attempt to emulate Founder Mode without possessing the same drive, experience, and vision.