The founder mode and the manager mode

During an interview, the potential employer asked the young man, "What do you consider your greatest weakness?"

- FRANCIS J. KONG

The job applicant replied, "Honesty."

The interviewer commented, "Honesty? I don't think honesty is a weakness." The young man replied, "I don't care what you think!"

Writer and investor Paul Graham has written an article featuring a speech by Airbnb's co-founder Brian Chesky in a talk that resonated deeply with many in attendance. The theme of Brian's talk was that the conventional wisdom about running larger companies needs to be corrected. As Airbnb grew, well-meaning people advised him to "hire good people and give them room to do their jobs." He followed this advice, and the results were disastrous. He had to figure out a better way, which he did partly by studying how Steve Jobs ran Apple.

So far, it is working. Airbnb's free cash flow margin is now among the best in Silicon Valley.

Chesky said that the advice he received boiled down to a popular management mantra: hire great people and let them do their jobs.

On paper, this approach sounds appealing. However, implementing it can lead to disastrous outcomes, especially for founder-led companies.

Chesky learned, and many founders later echoed, that this model works well for professional managers - those brought in to run a business they didn't create. But for founders, it often feels like a recipe for losing control.