In recent weeks, the concept of “founder mode” has sparked significant conversation in the tech industry, largely due to a presentation by Brian Chesky, the CEO of Airbnb.
Brian discussed the challenges of scaling and operating Airbnb, now a company with 41,000 employees managing multiple products and services. He also highlighted the difficulty of staying involved in key decisions that influence the company’s trajectory and its operational approach to employees.
Brian emphasized the importance of founders identifying critical decisions and actively contributing to the company’s direction and success. His message resonated with many founders attending the conference who are grappling with managing their product development, customer relationships and sales expenses.
Following the conference, attendees took to social media to discuss his insights, leading to a broad range of conversations as people added their perspectives and shaped the narrative in various ways.
Notably, Paul Graham, the founder of Y Combinator, weighed in with a blog post about founder mode, which received mixed reviews. Y Combinator is one of the world’s most notable accelerator programs, selecting a small group of promising founders each year to help them refine their products and bring them to market. Some of the most successful tech startups, such as Airbnb, Instacart, Coinbase, Dropbox, Reddit, DoorDash, and Stripe, have gone through Y Combinator.
While some critics argued that founder mode could be toxic, depending on the founder’s approach, others praised the concept, pointing out that the effectiveness of leadership depends on the integrity of the individual founder. While some lead with ethics and respect, others may create unhealthy work environments by taking advantage of their employees.
Brian, CEO of Airbnb, shared that learning about Steve Jobs’ operational approach inspired him to become more involved at the ground level. He found that being handson in certain areas has led to improved performance, focus and returns for Airbnb. He contrasted this with a period when he delegated too much to other executives, realizing that a founder’s direct involvement can be pivotal to the company’s success.
The debate over whether founder mode is effective and necessary continues to spark discussion. At DMC, we believe this conversation is important not just for tech startups but for leaders across all industries. The key question is: How involved should CEOs and leaders be in day-to-day operations to drive priorities and maintain focus?
Every organization has factors that shape its behavior and strategy. As a leader, it’s crucial to be introspective about what drives your organization. Metrics and regular touchpoints with employees are essential to maintaining a ground-level understanding of their motivations and challenges. Employees need purpose and a clear vision to stay focused and deliver results. Leaders must model the behaviors they expect within their organizations.
There’s a delicate balance between assertive, intentional leadership and passive, hands-off approaches. At DMC, our work with various partners has shown that the effectiveness of a leadership style depends on the organization’s goals. This also influences how deeply a leader should get involved in day-to-day operations. Flexibility, active listening and constant evaluation of business drivers are essential. By prioritizing wisely and making informed decisions, leaders can guide their organizations to success without compromising employee well-being.
At DMC, we define effective founder mode as intentional leadership that requires clarity, flexibility and the ability to pivot when necessary. It also involves inspiring employees to overcome challenges and drive the organization forward.
However, it’s essential to avoid toxic leadership behaviors that harm employees. Grit and perseverance are crucial, but they should never come at the cost of exploiting or mistreating your workforce. Effective founder mode is about balancing ambition with empathy, driving results while fostering a positive and supportive environment.
The DMC Workforce Success Team has more than 20 years combined experience and provides sustainable solutions to the complex social issues that affect large, medium or small businesses.
Join us at the Maximize Positive Impact Conference 2024 from 8:30 a.m. to 3 p.m., Oct. 30 at Derryfield Country Club in Manchester. For more information, visit deomwano.com.
Deo Mwano is the CEO of Deo Mwano Consultancy and the CEO and founder of MirrorIM.
