Navigating Leadership: The Balance of Founder and Manager Modes in Startups

How Should a C.E.O. Operate?

In recent days, the tech landscape of Silicon Valley has been buzzing with a compelling topic: the level of hands-on involvement that founders should maintain in their companies. This discussion has been notably framed by Brian Chesky, the co-founder and C.E.O. of Airbnb, and Paul Graham, co-founder of Y Combinator. They introduce the concept of “founder mode” versus “manager mode,” which explores the balance between direct involvement and delegation.

This is not a new debate; it draws from well-known examples such as Steve Jobs. However, it has gained renewed relevance as startups navigate the complexities of growth while appeasing increasingly impatient investors.

Graham Initiates the Conversation

Paul Graham sparked the latest discourse by asserting that, historically, many in Silicon Valley have operated under the assumption that scaling a startup necessitates a shift to manager mode. He remarked, “But we can infer the existence of another mode from the dismay of founders who’ve tried it, and the success of their attempts to escape from it.”

Graham elaborated on how a founder C.E.O. typically functions and highlighted a significant oversight in traditional business education:

• He criticized business schools for overlooking the more engaged and hands-on “founder mode,” stating that they “don’t know it exists.”

The Case of Brian Chesky

Chesky was cited as a prime example of this dynamic. At a recent Y Combinator event, he shared insights about his journey as a leader. During a podcast discussion, he revealed, “The less hands-on I was, the more I got sucked into problems. And by the time I got sucked into a problem, it was like 10 times as much work.”

Realizing the weight of involvement, he adjusted his approach: “I’m going to be involved in every single detail. And Airbnb is not going to do anything more than I can personally focus on.” This philosophy emphasizes the importance of a founder’s direct engagement in the early stages of a company, potentially steering it towards success while maintaining a clear vision.