Founder mode can be highly effective for certain leaders, like Brian Chesky of Airbnb. During the pandemic, Chesky famously consolidated responsibilities and became a chief editor of sorts, creating a single roadmap for the company. This approach may work well in some cases.
However, it's important to distinguish between editing and micromanaging. Many might perceive founder mode as akin to micromanagement, which is generally not beneficial. As a writer, I've worked with editors who guide writers to evaluate their thinking, strengthen arguments, consider different angles, and ultimately produce better solutions. An editor doesn't decide everything or do the work themselves but pushes people in the right direction aligned with their vision. They have the final say, reviewing and making final edits before publication.
This editing approach can be applied to product development, with founders making final edits after iterations. However, this can create a bottleneck in shipping, as the founder becomes involved in every detail. This will undoubtedly slow down the shipping cadence, as seen with companies like Brex and Airbnb. These companies may have reached a position where frequent shipping isn't necessary, but for fast-growing startups aiming to ship daily or weekly, having the founder review everything could create significant delays.
There's a valid argument against companies being run by boards or external executives, which can create a different culture that's less conducive to maintaining a startup mentality or high performance. We've seen performance dips when founders leave companies like Google and Amazon. However, there are exceptions, such as Apple's continued success, Microsoft's improved performance under Satya Nadella, and Uber's resilience under Dara Khosrowshahi.
From my experience as an early employee in several startups, I've observed that a lack of autonomy over one's work can lead to resentment. Meaningful work in startups often comes from having some level of autonomy, especially considering that early employees often make significant sacrifices in terms of salary and equity. Taking away autonomy can significantly reduce motivation.
However, alignment on the "why" and "what" of the company's mission is crucial. These aspects should be set in stone and not change day-to-day, as frequent changes can cause unrest. Conversely, giving employees complete freedom without direction can lead to disconnects when founders suddenly need to reassert control.
This issue is particularly relevant for Series B, C, and D startups undergoing management transitions. The era of multiple hierarchies, excessive people management, and organizational politics may be passing. Today, what matters most is delivering value to customers and end-users. This requires a fundamental alignment among all people in the startup.
In conclusion, founder mode can be effective when implemented thoughtfully, balancing the need for a unified vision with employee autonomy and efficient execution.