Summary:
Airbnb CEO Brian Chesky manages 7,300 employees with a hands-on, startup-like approach, involving himself in hiring, firing, and promotions for key staff.
He practices "skip level" management to stay close to the vision and ensure executive team effectiveness, defying conventional CEO advice.
The "founder mode" concept, popularized by Paul Graham, emphasizes agility and direct involvement, which Chesky argues is crucial in the age of AI.
This strategy was adopted after COVID-19 disruptions, with inspiration from Jony Ive and Steve Jobs, leading to reduced management layers.
Other CEOs, such as Duolingo's Luis von Ahn, have embraced similar approaches to maintain oversight in large companies.
Brian Chesky's Unconventional Leadership at Airbnb
Despite leading a globally recognized company valued at $79 billion with approximately 7,300 employees, Airbnb CEO Brian Chesky continues to manage the organization with a startup mentality. He remains deeply involved in personnel decisions for around 50 employees, treating them as his direct reports.
Hands-On Management Approach
Chesky emphasizes skipping levels in the hierarchy to co-hire, fire, promote, and manage employees directly. On the Social Radars podcast, he stated, "I treat them all as my directs. I skip level, I co-hire them, and I make decisions on whether or not they're working out and leave the company... Like, hire, fire, promote, and manage." He acknowledges this is intensive but necessary, arguing against conventional advice that CEOs should delegate to a top-tier executive team.
Rationale for Founder Mode
Chesky believes this approach keeps him close to the vision and the people doing the work, ensuring the executive team's effectiveness. He asserts that the founder's role is to set the vision, pace, and shape of the company daily. This philosophy, termed "founder mode" by Paul Graham after a Y Combinator event in 2024, stems from Chesky's past mistakes when he delegated too much, leading to poor outcomes.
Adaptation in the Age of AI
Chesky links founder mode to the need for agility in the era of artificial intelligence, arguing that large, professionally managed companies struggle to adapt quickly. He advocates for a nimble hierarchy to thrive in a rapidly changing landscape.
Origins and Wider Influence
The shift to founder mode was catalyzed by the COVID-19 pandemic, which disrupted Airbnb's IPO plans and caused a 72% revenue decline, forcing layoffs of 25% of staff. Advice from Apple's former design chief Jony Ive and inspiration from Steve Jobs' playbook led Chesky to remove management layers. Other leaders, like Duolingo's CEO Luis von Ahn, have adopted similar strategies, emphasizing broad oversight in their companies.
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