Reflections on Founder Mode

Paul Graham’s Founder Mode is an important piece, and you should read it if for no other reason that “founder mode” will surely enter the lexicon (and as Graham grimly predicts: “as soon as the concept of founder mode becomes established, people will start misusing it”). When building a company, founders are engaged in several different acts at once: raising capital; building a product; connecting that product to a market; building an organization to do all of these. Founders make lots of mistakes in all of these activities, and Graham’s essay highlights a particular kind of mistake in which founders are overly deferential to expertise or convention. Pejoratively referring to this as “Management Mode”, Graham frames this in the Silicon Valley dramaturgical dyad of Steve Jobs and John Scully. While that’s a little too reductive (anyone seeking to understand Jobs needs to read Randall Stross’s superlative Steve Jobs and the NeXT Big Thing, highlighting Jobs’s many post-Scully failures at NeXT), Graham has identified a real issue here, albeit without much specificity.

For a treatment of the same themes but with much more supporting detail, one should read the (decade-old) piece from Tim O’Reilly, How I failed. (Speaking personally, O’Reilly’s piece had a profound influence on me, as it encouraged me to stand my ground on an issue on which I had my own beliefs but was being told to defer to convention.) But as terrific as it is, O’Reilly’s piece also doesn’t answer the question that Graham poses: how do founders prevent their companies from losing their way?

Graham says that founder mode is a complete mystery (“There are as far as I know no books specifically about founder mode”), and while there is a danger in being too pat or prescriptive, there does seem to be a clear component for keeping companies true to themselves: the written word. That is, a writing- (and reading-!) intensive company culture does, in fact, allow for scaling the kind of responsibility that Graham thinks of as founder mode. At Oxide, our writing-intensive culture has been absolutely essential: our RFD process is the backbone of Oxide, and has given us the structure to formalize, share, and refine our thinking. First among this formalized thinking – and captured in our first real RFD – is RFD 2 Mission, Principles, and Values. Immediately behind that (and frankly, the most important process for any company) is RFD 3 Oxide Hiring Process. These first three RFDs – on the process itself, on what we value, and on how we hire – were written in the earliest days of the company, and they have proven essential to scale the company: they are the foundation upon which we attract people who share our values.

While the shared values have proven necessary, they haven’t been sufficient to eliminate the kind of quandaries that Graham and O’Reilly describe. For example, there have been some who have told us that we can’t possibly hire non-engineering roles using our hiring process – or told us that our approach to compensation can’t possibly work. To the degree that we have had a need for Graham’s founder mode, it has been in those moments: to stay true to the course we have set for the company. But because we have written down so much, there is less occasion for this than one might think. And when it does occur – when there is a need for further elucidation or clarification – the artifact is not infrequently a new RFD that formalizes our newly extended thinking. (RFD 68 is an early public and concrete example of this; RFD 508 is a much more recent one that garnered some attention.)

Most importantly, because we have used our values as a clear lens for hiring, we are able to assure that everyone at Oxide is able to have the same disposition with respect to responsibility – and this (coupled with the transparency that the written word allows) permits us to trust one another. As I elucidated in Things I Learned The Hard Way, the most important quality in a leader is to bind a team with mutual trust: with it, all things are possible – and without it, even easy things can be debilitatingly difficult. Graham mentions trust, but he doesn’t give it its due. Too often, founders focus on the immediacy of a current challenge without realizing that they are, in fact, undermining trust with their approach. Bluntly, founders are at grave risk of misinterpreting Graham’s “Founders Mode” to be a license to micromanage their teams, descending into the kind of manic seagull management that inhibits a team rather than empowering it.

Founders seeking to internalize Graham’s advice should recast it by asking themselves how they can foster mutual trust – and how they can build the systems that allow trust to be strengthened even as the team expands. For us at Oxide, writing is the foundation upon which we build that trust. Others may land on different mechanisms, but the goal of founders should be the same: build the trust that allows a team to kick a Jobsian dent in the universe!