Video from All favorites #990

Unfortunately, most people who work at startups in the first phase are really bad managers because in the beginning, we hire people who have a ton of self-accountability. Most founders have incredible self-accountability. They work all the time and they hire a lot of people like that. They don't need management. That's why so much gets done at very early stage companies. But eventually you end up hiring people who are not going to be like that. For one thing, because whatever equity when you give them is not going to be large enough to justify that level of work. At that point, you need management. And by management, primarily I mean sets culture, goals, clarity around how to achieve them, and holds people accountable. Unfortunately, most people who work at startups in the first phase are really bad managers because they never learn how to be managers. They don't want to be managers and they don't like to make people feel bad. The result is very bad management across startups. Startups that succeed, succeed because they either have really amazing margin and they just kind of like pour more people at problems and have massive inefficiency. And I think there is a better way to do that.