Founder mode or Manager mode
There’s been a lot of talk lately about Founder mode versus Manager mode. It’s not a new issue, but one that’s come back strongly after Brian Chesky, the founder and CEO of Airbnb, gave a talk on the topic. He discussed how the advice most founders receive when trying to scale their businesses is, in his opinion, wrong. The common advice is to “hire good people and let them do the job.” According to Chesky, Airbnb followed this advice, and it led to disastrous results. He then had to change his approach, modelling it after how Steve Jobs ran Apple, which seems to be working much better so far.
So, what’s the difference between Founder mode and Manager mode? Manager mode is the traditional way business schools advise leaders to manage organisations: hire good people, create hierarchical org charts, and only interact with your direct reports. Founder mode, on the other hand, is a more hands-on style of leadership with more involvement and decision-making at all levels. Many founders start out deeply involved in the day-to-day operations, but as their businesses grow, they’re told to switch to “manager mode.” The thinking here is that Founder mode can seem like micromanaging—if the CEO of a 500+ person company is still involved in decisions about website features, brochure fonts, or packaging colours, does that mean they don’t trust the people they hired to do the job?
In my view, the conversation shouldn’t be about Founder mode versus Manager mode, but about “Leader Mode”—whether the leader founded the business or not.
At a high level, I think adaptive leaders need to focus on three things: 1) Preserve the essential DNA and elements that work, 2) Discard what no longer serves a purpose, and 3) Create possible futures to realise new potential. These can be done by both founders and non-founders. A founder often has a deep understanding of the business’s core DNA—what makes the business what it is. So, I don’t mind when a founder or leader gives input on something that seems small but is crucial for preserving the essence of the company.
On the flip side, a leader who didn’t found the company might find it easier to discard outdated elements, being less emotionally attached and more focused on making decisions that benefit the organisation. Founders can sometimes struggle to let go of elements that helped them in the past, even if they no longer add value. As for creating new futures and realising potential, I’ve found that founders or those with a founder’s mentality tend to do this better than those in “manager mode.” Manager mode typically focuses on structure and order—what my business partner Gus Balbontin calls “pouring concrete over the organisation.” This often leads to less innovation, while founders or those with a founder’s mindset are more likely to keep imagining new futures, just as they did when starting the business.
In short, I don’t think the debate should be Founder mode vs. Manager mode. Instead, we should focus on helping both types of leaders become more adaptive in how they lead.
What do you think?
