In a recent post on his website, programmer and investor Paul Graham writes about hearing Brian Chesky, the founder of Airbnb, discuss the pitfalls of companies that begin as start-ups and morph into large enterprises. 

When Chesky started Airbnb, he devoted every waking hour to his project. What began as an idea quickly grew into a huge business, with many offering advice on “what’s next.”

As the business grew, Chesky moved from being a founder to taking more of a hands-off approach. The advice he received from highly successful leaders was to hire smart, talented people and let them do their jobs. 

Chesky listened to their advice — but suddenly Airbnb became a disaster. 

As things were slipping away, Chesky studied how Steve Jobs ran Apple and quickly decided to shift the leadership direction from “manager mode” back to “founder mode.” 

Graham coined the term in his essay, and it has since become a new buzz word around the corporate world. Here is the breakdown of the two different styles of leadership. 

Founder mode refers to a leadership style characterized by:

Proponents argue that founder mode allows for:

Manager Mode

Manager mode is described as a more traditional leadership style involving:

Advocates of manager mode claim it enables:

When David Chase was trying to sell his idea for a television series, he struggled. When he finally sold “The Sopranos” to HBO, Chase spent the next seven years in “founder mode.”

The Sopranos was his baby. Every word, every scene had to meet his level of approval.

Even though he didn’t write every script, he outlined the year, was intimately involved with the final product and devoted his life to the show. He never shifted to manager mode, often to the chagrin of the actors and writers. Everyone involved understood Chase was devoted to the details.

Moving from a founder to a manager also occurs in sports when a young assistant coach becomes a first-time head coach. As a new leader, the coach allows the assistants to run their area of speciality, in part because when they were assistants, they didn’t want any interference from the head coach. Only when the young coach behaves as a founder does the team take on an identity and the personality of its leader.

For any leader, having success in an startup company or being promoted to a bigger role isn’t a reason to step back. It becomes an incentive to step forward and become more involved, thus protecting the product. 

All great companies or organizations are built on the premise of “founders’ mode.” When they shift to manager mode, trouble starts, and the end is near. 

Being a founder is hard, being successful is even harder. 

But letting others take control of your dream won’t ever work. 

Embrace the hard. Be a founder. 

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