Last month, the tech world was in a tizzy following a talk by Airbnb founder/CEO Brian Chesky in which he allegedly described "founder mode" (hands-on management) vs. "manager mode" (delegation). Paul Graham, co-founder of the influential startup incubator Y-Combinator, wrote an essay summarizing his take.
And while the recent uproar over “founder mode vs. manager mode” may have cooled, there is clearly a lot of energy and passion about the right way to lead a company to success.
I believe there are challenges with both modes, as I feel they miss what is holding teams back from growth and performance as they scale. I believe we all need to invest more energy into what I’ll call extended leadership team (ELT) mode.
Over multiple decades in tech, I’ve worked in vastly different companies. I’ve led teams in large multi-product public companies, sub $1 million revenue startups, broad horizontal enterprise offerings, and low-touch PLG motions. In every company I’ve been to, one fact remains the same — the extended leadership team is the make-or-break ingredient to success.
The ELT consists of managers and leaders one to two levels down from the C-suite. They are the VPs, directors, and senior directors leading the execution of motions across all departments.
When the C-level sets a strategy and high-level plan, the ELT is responsible for translating that strategy into actionable tactics for the workforce, as well as ensuring the day-to-day execution of the plan. When conditions change and strategies evolve, it’s the ELT that steers the frontline in new directions. These leaders are literally running the business, and when the company has challenges, the ELT takes the pressure.
These crucial leaders are aspiring C-level employees. They take on this pressure because they care and they want to win. They have risen to success for a reason and have big dreams. Unfortunately, in anything but high times, the ELT will likely show up in employee NPS surveys as the most unhappy, disengaged, and frustrated segment of the workforce—not exactly a recipe for success.
So why is the ELT so disenfranchised?
In too many companies, they’re out of the loop. The ELT is rarely included in the weekly executive meeting, and their only interaction with strategic topics and decisions relies on the consistency and strength of communication from their C-level leader. Surprisingly, those skills are usually average at best. Companies will check a box with a monthly or quarterly ELT meeting just to discuss a limited set of topics, often without truly listening.
This lack of two-way dialogue is not only challenging the success of the execution, it’s a massive missed opportunity for the C-suite.
The ELT knows what’s going on — they are much closer to what’s happening on the ground with employees and customers and have incredibly valuable input to share. C-level execs can’t be in every detail, and the bigger the company scales, the more details there are. It becomes incredibly challenging to have frontline insight and support when company leaders don’t have close relationships with their department leaders and the managers below them to inform their opinions and strategies.
When the collaboration doesn’t work, the issue cascades down the organization. Every multi-level manager has their own ELT, with the same obstacles and opportunities. Alignment in strategy and execution up and down the organization relies on consistent open dialogue between managers and their reports. If that dialogue falls off at the top, it has no chance of flowing down through less and less experienced managers to the point of revenue.
Leaders can solve the disengagement problem and benefit from the knowledge of their teams by operating in ELT mode, which has four key components.
We often think we are communicating with our team, but really, we are only focused on their output.
We seek to measure whether they’ve hit their key performance indicators (KPI), but we don’t have a real dialogue about why or why not. Weekly one-on-one meetings should not be a time when the employee ticks off a list of tactical updates; instead, leaders should have frequent two-way dialogues about what is really going on in the business. Similarly, weekly manager meetings shouldn’t be when everyone just takes a turn giving a high-level update while the rest of the team tunes out.
Instead, this is an opportunity for the executives to cascade information and encourage inclusive conversation amongst cross-department leaders. Ensuring each ELT member has the strategic knowledge they need to inform their own strategy is just as important as them relaying back exactly how it’s going.
The onus for the success of this meeting is on the executive, and it takes real preparation to think through what information is important to cascade and discuss. The leader should seek not to judge but to inform, understand, coach, and guide.
Conflict and debate should be welcomed, as they’re a sign that the real issues are being addressed. And when the big obstacles and opportunities arise, don’t hunker down with the C-level in an offsite. Invite in the knowledge of the full ELT.
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I once had a manager who would say, “Don’t bring me problems. Bring me solutions.”
I hated that phrase. I have no problem tackling problems when I know how to solve them. It’s when I need help with the problem that I could use an open dialogue with my manager. Of course, I should come prepared with ideas and minimize complaints. But the most important time for a meeting is when I can’t figure out the right solution. My manager’s job is to help remove obstacles for their team, and the more I share the challenges, the more they are in a position to do just that.
A couple of years ago, I had the opportunity to sail on an America's Cup boat (thank you, Snowflake!) The vessel itself was a work of art, but I was most impressed with the orchestration of the crew. On a racing boat, every team member has a very specific and important role. If anyone isn’t doing their job at a high level, the boat slows.
The captain’s role is to constantly assess both the conditions and the team’s performance and yell out instructions to the crew, who are hyper-focused on their jobs.
Now imagine if that captain was standing on shore or only hopping on the boat for five minutes to bark out the conditions and then helicopter out. The crew would each do their best at their jobs but with little knowledge of the bigger picture. With an inability to get into the details of their crewmates' situations, the boat would slow to a stop.
Just like captaining a racing boat, leaders must constantly watch the market and listen to the team. Assessing where the team is struggling and where they excel in tactical execution helps leaders know when and where to dive into details and coach, as well as when to double down on a tactic.
Founder mode argues for doing lots of skip-level meetings (one-on-one meetings between managers and indirect reports), and I agree. However, I prefer to call them conversations, not meetings, because they can and should happen anywhere.
In fact, casual conversations at an event or dinner are the best time to have a transparent dialogue with your crew. The more time leaders spend seeking to understand, the more they can leverage their expertise and seniority to help solve problems and create opportunities to win. They can then bring these frontline insights to the executive team and help inform overall company strategy.
A company that is aligned and “in the flow” of work relies on the strength of communication and management up and down the chain. Skip-level conversations are key, but “founder mode” should not be misconstrued as a directive to micromanage and take autonomy away from great leaders. Instead, focus on finding, training, and building up current and future leaders.
The best way to teach is by setting an example. If you want your managers to adopt ELT mode, model it for them. Show them how to cascade important or sensitive information, but also have a discussion on how they should go about doing so and hold them accountable for doing so. Hold regular office hours where you have open and transparent dialogue with the full team. Get in the boat with your team, and they’ll have a hard time staying on the shore with theirs.
Adopting ELT mode is essential for fostering a culture of collaboration, transparency, and empowerment within organizations. By prioritizing open dialogue, actively engaging with the ELT, and nurturing a shared understanding of strategy and execution, companies can unlock the potential of their leaders and frontline employees alike.
This approach not only addresses the disenfranchisement often felt by the ELT but also creates a more agile and resilient organization. As we move forward, join me in committing to investing in our ELTs, ensuring they are informed, involved, and empowered to drive success. When the ELT thrives, the entire organization benefits.
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