Member-only story
How Should a CEO Operate? Debate Heats Up in Silicon Valley
Silicon Valley is currently debating the ideal role of CEOs, focusing on the distinction between “founder mode” and “manager mode.” Airbnb CEO Brian Chesky and Y Combinator co-founder Paul Graham argue for a hands-on “founder mode,” which involves CEOs engaging deeply in their companies beyond traditional managerial structures. Graham suggests that many founders are dissatisfied with the conventional “manager mode,” and he cites successful examples of the more involved approach, including Steve Jobs, Elon Musk, and Jensen Huang of Nvidia.
Chesky’s experience at Airbnb supports the hands-on model, asserting that his involvement in every detail prevents problems from escalating. While Airbnb’s strong cash flow demonstrates the benefits, its stock remains below its peak. Proponents of the founder mode, such as Shopify’s Tobias Lütke, argue it leads to success, but critics note the need for capable managers. Jessica Lessin of The Information emphasizes the importance of balance, highlighting how Steve Jobs relied on Tim Cook for operational oversight. This ongoing debate reflects the challenge of balancing growth with investor expectations in the tech industry.
The Rise of Founder Mode: A Deeper Engagement
The rise of “founder mode” represents a shift in how company leaders view their role…
