Founder Mode
Paul Graham’s essay Founder Mode challenges the conventional wisdom about how founders should run their companies as they scale.
The Two Modes
Graham identifies two distinct approaches to running companies:
Manager Mode: The conventional advice. Delegate through hierarchy, treat organizational units as “black boxes,” avoid “micromanagement.” This is what business schools teach and what VCs often recommend.
Founder Mode: What successful founders actually do. Direct involvement across all levels, strategic unconventional practices, flexible engagement that evolves with trust.
The Problem with Manager Mode
The standard scaling advice—hire good people and give them room to do their jobs—sounds reasonable but often damages companies. Graham notes that many successful founders felt “gaslit” when told to adopt traditional management practices. They knew something was wrong but faced pressure to conform.
The harsh reality: “VCs who haven’t been founders themselves don’t know how founders should run companies.”
What Founder Mode Looks Like
Rather than confining engagement to direct reports:
- Skip-level meetings become normal - founders talk directly to people doing the work
- Strategic unconventional practices - Steve Jobs held annual retreats with the 100 most important people at Apple, regardless of org chart position
- Flexible autonomy boundaries - how much latitude to give employees evolves based on demonstrated trust
My Takeaway
This essay validates something I’ve observed: the best builders stay close to the work. They don’t retreat to the executive suite. The challenge is knowing when direct involvement helps versus when it hinders. The answer isn’t one-size-fits-all—it depends on the people, the situation, and the stage of the company.
The key insight: don’t blindly follow conventional management wisdom just because that’s what “professional” managers do.
How do you balance delegation with staying close to the work? I’d love to discuss at persdre@gmail.com.