Silicon Valley discusses how CEOs can balance innovation and growth?

In the dynamic Silicon Valley landscape, where innovation and rapid growth are paramount, a new management trend is sparking debate among founders and CEOs: the contrast between "Founder Mode" and "Manager Mode."

Inspired by Steve Jobs, Airbnb co-founder and CEO Brian Chesky recently reignited the debate on how leaders should position themselves within their companies, especially during periods of expansion. Chesky has opted for a more hands-on approach to daily operations, which he calls "Founder Mode," contrasting with the more traditional "Manager Mode" widely adopted by large corporations.

Ultimately, which of these two management styles is most suitable for tech companies facing the challenge of maintaining rapid innovation while expanding into new markets? And to what extent can or should a founder maintain control over the smallest details of operations?

Without "Founder Mode," the founder acts as a central figure, directly involved in strategic and operational decisions. Chesky, for example, highlighted that this continuous involvement was crucial in preserving Airbnb's innovative essence, even with its exponential growth. A recurring practice in this model is holding "skip-level meetings," where the CEO connects directly with operational levels, facilitating agile decisions aligned with the company's original vision.

On the other hand, in "Manager Mode," the CEO delegates day-to-day execution to area leaders, focusing on broader strategies such as market expansion and large-scale product development. While efficient in larger companies, this model risks distancing the leader from operations and compromising agility and the preservation of the initial culture.

The big question is: how long is "Founder Mode" sustainable in growing companies? As a startup expands, maintaining such deep involvement can become unviable and draining for the founder, who will need to delegate more responsibilities to specialized leaders. Brian Chesky and Steve Jobs themselves managed to sustain "Founder Mode" in large companies, but adapted their approaches, ensuring a balance between product involvement and trust in their teams.

Companies like Airbnb, Tesla, and Google are exploring hybrid models, where the founder participates in key decisions but delegates operational management to experienced leaders. This format balances innovation with scalable growth without losing the company's core essence. Elon Musk exemplifies how founders can adjust their involvement as their companies become more complex.

Ultimately, the real challenge is finding the balance between "Founder Mode" and "Manager Mode," depending on the company's stage of development. The biggest mistake would be to insist on only one management model without considering the specific needs of the business.