by Robyn Bolton | Sep 11, 2024 | Leadership
Paul Graham, cofounder of Y Combinator, was so inspired by a speech by Airbnb cofounder and CEO that he wrote an essay about well-intentioned advice that, to scale a business, founders must shift modes and become managers.
It went viral.
In the essay, he argued that:
In effect there are two different ways to run a company: founder mode and manager mode. Till now most people even in Silicon Valley have implicitly assumed that scaling a startup meant switching to manager mode. But we can infer the existence of another mode from the dismay of founders who’ve tried it, and the success of their attempts to escape from it.
With curiosity and an open mind, I read on.
I finished with a deep sigh and an eye roll.
This is why.
Manager Mode: The realm of liars and professional fakers
On the off chance that you thought Graham’s essay would be a balanced and reflective examination of management styles in different corporate contexts, his description of Manager Mode should relieve you of that thought:
The way managers are taught to run companies seems to be like modular design in the sense that you treat subtrees of the org chart as black boxes. You tell your direct reports what to do, and it’s up to them to figure out how. But you don’t get involved in the details of what they do. That would be micromanaging them, which is bad.
Hire good people and give them room to do their jobs. Sounds great when it’s described that way, doesn’t it? Except in practice, judging from the report of founder after founder, what this often turns out to mean is: hire professional fakers and let them drive the company into the ground.
Later, he writes about how founders are gaslit into adopting Manager Mode from every angle, including by “VCs who haven’t been founders themselves don’t know how founders should run companies, and C-level execs, as a class, include some of the most skillful liars in the world.”
Founder Mode: A meritocracy of lifelong learners
For Graham, Founder Mode boils down to two things:
- Sweating the details
- Engaging with employees throughout the organization beyond just direct reports. He cites Steve Jobs’ practice of holding “an annual retreat for what he considered the 100 most important people at Apple, and these were not the 100 people highest on the org chart.”
To his credit, Graham acknowledges that getting involved in the details is micromanaging, “which is bad,” and that delegation is required because “founders can’t keep running a 2000 person company the way they ran it when it had 20.” A week later, he acknowledged that female founders “don’t have permission to run their companies in Founder Mode the same way men can.”
Yet he persists in believing that Founder, not Manager, Mode is critical to success,
“Look at what founders have achieved already, and yet they’ve achieved this against a headwind of bad advice. Imagine what they’ll do once we can tell them how to run their companies like Steve Jobs instead of John Sculley.”
Leader Mode: Manager Mode + Founder Mode
The essay is interesting, but I have real issues with two of his key points:
- Professional managers are disconnected from the people and businesses they manage, and as a result, their practices and behaviors are inconsistent with startup success.
- Founders should ignore conventional wisdom and micromanage to their heart’s content.
Most “professional managers” I’ve met are deeply connected to the people they manage, committed to the businesses they operate, and act with integrity and authenticity. They are a far cry from the “professional fakers” and “skillful liars” Graham describes.
Most founders I’ve met should not be allowed near the details once they have a team in place. Their meddling, need for control, and soul-crushing FOMO (Fear of Missing Out) lead to chaos, burnout, and failure.
The truth is, it’s contextual. The leaders I know switch between Founder and Manager mode based on the context. They work with the passion of founders, trust with the confidence of managers, and are smart and humble enough to accept feedback when they go too far in one direction or the other.
Being both manager and founder isn’t just the essence of being a leader. It’s the essence of being a successful corporate innovator. You are a founder, investing in, advocating for, and sweating the details of ambiguous and risky work. And you are a manager navigating the economic, operational, and political minefields that govern the core business and fund your paycheck and your team.
by Robyn Bolton | Aug 28, 2024 | Innovation, Leadership, Tips, Tricks, & Tools
You were born creative. As an infant, you had to figure many things out—how to get fed or changed, get help or attention, and make a onesie covered in spit-up still look adorable. As you grew older, your creativity grew, too. You drew pictures, wrote stories, played dress-up, and acted out imaginary stories.
Then you went to school, and it was time to be serious. Suddenly, creativity had a time and place. It became an elective or a hobby. Something you did just enough of to be “well-rounded” but not so much that you would be judged irresponsible or impractical.
When you entered the “real world,” your job determined whether you were creative. Advertising, design, marketing, innovation? Creative. Business, medicine, law, engineering? Not creative.
As if Job-title-a-determinant-of-creativity wasn’t silly enough, in 2022, a paper was published in the Journal of Applied Psychology that declared that, based on a meta-analysis of 259 studies (n=79,915), there is a “male advantage in creative performance.”
Somewhere, Don Draper, Pablo Picasso, and Norman Mailer high-fived.
But, as every good researcher (and innovator) knows, the headline is rarely the truth. The truth is that it’s contextual and complicated, and everything from how the original studies collected data to how “creativity” was defined matters.
But that’s not what got reported. It’s also not what people remember when they reference this study (and I have heard more than a few people invoke these findings in the three years since publication).
That is why I was happy to see Fortune report on a new study just published in the Journal of Applied Psychology. The study cites findings from a meta-analysis of 753 studies (n=265,762 individuals) that show men and women are equally creative. When “usefulness (of an idea) is explicitly incorporated in creativity assessment,” women’s creativity is “stronger.”
Somewhere, Mary Wells Lawrence, Frida Kahlo, and Virginia Woolf high-fived.
Of course, this finding is also contextual.
What makes someone “creative?”
Both studies defined creativity as “the generation of novel and useful ideas.”
However, while the first study focused on how context drives creativity, the second study looked deeper, focusing on two essential elements of creativity: risk-taking and empathy. The authors argued that risk-taking is critical to generating novel ideas, while empathy is essential to developing useful ideas.
Does gender influence creativity?
It can. But even when it does, it doesn’t make one gender more or less creative than the other.
Given “contextual moderators” like country-level culture, industry gender composition, and role status, men tend to follow an “agentic pathway” (creativity via risk-taking), so they are more likely to generate novel ideas.
However, given the same contextual moderators, women follow a “communal pathway” (creativity via empathy), so they are more likely to generate useful ideas.
How you can use this to maximize creativity
Innovation and creativity go hand in hand. Both focus on creating something new (novel) and valuable (useful). So, to maximize innovation within your team or organization, maximize creativity by:
- Explicitly incorporate novelty and usefulness in assessment criteria. If you focus only on usefulness, you’ll end up with extremely safe and incremental improvements. If you focus only on novelty, you’ll end up with impractical and useless ideas.
- Recruit for risk-taking and empathy. While the manifestation of these two skills tends to fall along gender lines, don’t be sexist and assume that’s always the case. When seeking people to join your team or your brainstorming session, find people who have demonstrated strong risk-taking or empathy-focused behaviors and invite them in.
- Always consider the context. Just as “contextual moderators” impact people’s creative pathways, so too does the environment you create. If you want people to take risks, be vulnerable, and exhibit empathy, you must establish a psychologically safe environment first. And that starts with making sure there aren’t any “tokens” (one of a “type”) in the group.
Which brings us back to the beginning.
You ARE creative.
How will you be creative today?
by Robyn Bolton | Jul 31, 2024 | Leadership
Stop me if this sounds familiar. A new hire bounces into your office and, with all the joy and enthusiasm of a new puppy, rattles off a list of ideas. You smile and, just like with new puppies, explain why their ideas won’t work, and encourage them to be patient and get to know the organization.
Congratulations! You just cost your company money. Not because the new hire’s idea was the silver bullet you’ve been seeking but because you taught them that it’s more critical for them to do their jobs and maintain the status quo than to ask questions and share ideas.
If that seems harsh, read the new research from Harvard Business School professor Amy Edmondson.
Year 1: Rainbows and Unicorns (mostly)
From 2017 through 2021, Dr. Edmonson and her colleagues collected data from over 10,000 physicians. Using biannual (every two years) surveys, they asked physicians to rate on a 5-point scale how comfortable they felt offering opinions or calling out the mistakes of colleagues or superiors.
It was little surprise that agreement with statements like “I can report patient safety mistakes without fear of punishment” were highest amongst people with less than one year of service at their employer.
These results all come down to one thing: high levels of psychological safety.
Years 2+: Resignation and Unhappiness
However, psychological safety erodes quickly in the first year because:
- There’s a gap between words and actions: When new hires join an organization, they believe what they hear about its culture, values, priorities, and openness. Once they’re in the organization and observe their colleagues’ and superiors’ daily behavior, they experience the disconnect, lose trust, and shift into self-protection mode.
- Their feedback and ideas are rebuffed: This scenario is described above, but it’s not the only one. Another common situation occurs when a new hire responds to requests for feedback only to be met with silence or exasperation, a lack of follow-through or follow-up, or is openly mocked or met with harsh pushback
- Expectations increase with experience: It’s easier to ask questions when you’re new, and no one expects you to know the answers. Over time, however, you are expected to learn the answers and you no longer feel comfortable asking questions, even if there’s no way you could know the answer.
20 years to regain what was lost in 1
According to Edmondson’s research, it takes up to 20 years to rebuild the safety lost in the first year.
As a leader, you can slow that erosion and accelerate the rebuilding when you:
- Recognize the Risk: Knowing that new hires will experience a drop in psychological safety, staff them on teams that have higher levels of safety
- Walk the Talk: Double down on demonstrating the behaviors you want. Immediately act on feedback that points out a gap between your words and actions.
- Ask questions: Demonstrate your openness by being curious, asking questions, and asking follow-up questions. As Edmonson writes, “You are training people to contribute by constantly asking questions.”
- Promises Made = Promises Kept: If you ask for feedback, act on it. If you ask for ideas, act on some and explain why you’re not executing others.
- Be Vulnerable: Admit your mistakes and uncertainties. It sets a powerful example that it’s okay to be imperfect and to ask for help. It also creates an environment for others to do the same.
The Cost of Silence vs. The Cost of Time
Building and maintaining psychological safety takes time and effort. It takes 5 minutes to listen to and respond to an idea. It takes hours to ensure new hires join safe teams. It takes weeks to plan and secure support for post-hackathon ideas.
But how does that compare to 20 years of lost ideas, improvements, innovations, and revenue? To 20 years of lost collaboration, productivity, and peak effectiveness? To 20 years of slow progress, inefficiency, and cost?
How many of your employees stick around 20 years to give you the chance to rebuild what was lost?
by Robyn Bolton | Jul 22, 2024 | Innovation
“This time feels different.” I’ve been hearing this from innovation practitioners and partners for months We’ve seen innovation resilience tested in times of economic uncertainty and geopolitical volatility. We’ve seen it flourish when markets soar and capital is abundant. We’ve seen it all, but this time feels different.
In fact, we feel a great disturbance in the innovation force.
Disturbances aren’t always bad. They’re often the spark that ignites innovation. But understand the disturbance you must, before work with it you can.
So, to help us understand and navigate a time that feels, and likely is, different, I present “The Corporate Innovator’s Saga.”
Episode I: The R&D Men (are) Aces
(Sorry, that’s the most tortured one. The titles get better, I promise)
A long time ago (1876), in a place not so far away (New Jersey), one man established what many consider the first R&D Lab. A year later, Thomas Edison and his Menlo Park colleagues debuted the phonograph.
In the 20th century, as technology became more complex, invention shifted from individual inventors to corporate R&D labs. By the late 1960s, Bell Labs employed 15,000 people, including 1,200 PhDs. In 1970, Xerox’s famed Palo Alto Research Center (PARC) opened.
Episode II: Attack of the Disruptors
For most of the twentieth century, R&D labs were the heroes or villains of executives’ innovation stories. Then, Harvard Business School professor Clayton Christensen published, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail.
He revealed that executives’ myopic focus on serving their best (most profitable) customers caused them to miss new waves of innovation. In example after example, he showed that R&D often worked on disruptive (cheaper, good enough) technologies only to have their efforts shut down by executives worried about cannibalizing their existing businesses.
C-suites listened, and innovation went from an R&D problem to a business one.
Episode III: Revenge of the Designers
Design Thinking’s origins date back to the 1940s, its application to business gained prominence with l Tim Brown’s 2009 book, Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation.
This book introduced frameworks still used today’s: desirability, feasibility, and viability; divergent and convergent thinking; and the process of empathy, problem definition, ideation, prototyping, and testing.
Innovation now required businesspeople to become designers, question the status quo, and operate untethered from the short-termism of business,
Episode IV: A New Hope (Startups)
The early 2000s were a dizzying time for corporate innovation. Executives feared disruption and poured resources into internal innovation teams and trainings. Meanwhile, a movement was gaining steam in Silicon Valley.
Y Combinator, the first seed accelerator, launched in 2005 and was followed a year later by TechStars. When Eric Ries published The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses in 2011, the US was home to nearly 1o0 startup accelerators.
Now, businesspeople needed to become entrepreneurs capable of building, and scaling startups in environments purpose-built to kill risk and change.
In response, companies spun up internal accelerators, established corporate venture capital teams, and partnered with startup studios.
Episode V: Reality Strikes Back
Today, the combination of a global pandemic, regional wars, and a single year in which elections will affect 49% of the world’s population has everyone reeling.
Naturally, this uncertainty triggered out need for a sense of control. The first cut were “hobbies” like innovation and DEI. Then, “non-essentials” like “extra” people and perks. For losses continued into the “need to haves,” like operational investments and business expansion.
Recently, the idea of “growth at all costs” has come under scrutiny with advocates for more thoughtful growth strategies emerging There is still room for innovation IF it produces meaningful, measurable value.
Episode VI: Return of the Innovator(?)
I don’t know what’s next, but I hope this is the title. And, if not, I hope whatever is next has Ewoks.
What do you hope for in the next episode?
by Robyn Bolton | Jul 18, 2024 | Podcasts
