Paul Graham **Overview** - Two ways to run a company: _founder mode_ and _manager mode_ - Manager mode is well-known, taught in business schools - Founder mode is less understood, but potentially more effective **Characteristics of manager mode:** - Treats parts of the org chart as black boxes - Avoids "micromanaging" - Often described as "hire good people and give them room to do their jobs" - Can lead to hiring "professional fakers" who may damage the company **Characteristics of founder mode:** - Breaks the principle of CEO engaging only with direct reports - May involve "skip-level" meetings as the norm - Allows for more direct involvement across the organization - Example: Steve Jobs' annual retreat with 100 most important people at Apple **Observations:** - Founders often feel "gaslit" when told to run companies like managers - VCs without founding experience may not understand how founders should run companies - C-level executives can be skilled at "managing up" **Future of founder mode:** - Currently not well-documented or understood - May vary from company to company and change over time - Could lead to better company performance - Some successful founders may already be practicing aspects of it **Predictions:** - Founder mode will become better understood and documented - It will be more complicated but more effective than manager mode - Some founders previously seen as eccentric may be vindicated - The concept may be misused by those unable to delegate or non-founders trying to act like founders ---