How Slack Changed Workplace Communication: 3 Thought-Provoking Questions for Founders

Slack isn’t just the fastest-growing SaaS startup in history.?It did something amazing in just five years: it made work fun! Starting as a simple tool for their own team, Slack grew into a $16 billion company.

From a simple internal tool to a $16 billion enterprise powerhouse, Slack’s journey offers valuable lessons for business owners, CEOs, and SaaS founders.

Here’s how Slack’s innovative approach reshaped workplace communication and what you can learn from it:?

?? The Birth of Slack: From Gaming to Productivity

Slack’s story begins with Tiny Speck, a company founded by Stewart Butterfield, aiming to create the MMORPG Glitch.?

??? The Challenge: Communication Chaos in Gaming Development

In 2009, Stewart Butterfield and his team at Tiny Speck had a big problem while making an online game called Glitch. Since the team worked from different places, they had trouble talking to each other clearly.

They used Internet Relay Chat, but it didn't work well. They missed messages and got confused. The team needed a better way to talk and work together in real-time to make their work easier and more fun.

They needed a better way to collaborate, and so they began developing an internal communication tool.

?? The Solution: An Internal Tool Turned Global Phenomenon

What began as an internal tool, created to improve communication within Tiny Speck, soon transformed into something much bigger.?

The team developed what would eventually become Slack. (Searchable Log of All Communication and Knowledge)?

Originally designed to meet their own needs, Slack featured a simple and easy-to-use interface that helped teams stay connected, share files, and work together effectively.?

The founders didn't start out to create a SaaS product for workplace communication; they just wanted a better way to manage their project.?

As they improved the tool, they saw its wider potential. By the time they released Slack to the public it was a fully tested and refined product.

?? The Growth: Becoming a SaaS Giant

Slack officially launched in 2013 and quickly became popular. By focusing on making the user experience enjoyable and engaging, Slack set itself apart from other business tools. Its integration with popular services like Google Drive, Trello, and GitHub made it an indispensable tool for many teams.

Butterfield reflects,

“We begged and cajoled our friends at other companies to try it out and give us feedback. We had maybe six to ten companies to start with that we found this way.”

What started as a necessity for Tiny Speck became a solution for many.

The platform’s growth was remarkable. By 2014, Slack had 60,000 daily active users and by 2020, it had over 12 million. The freemium model combined with a commitment to continuously improving the product fueled this rapid adoption. By October 2014, 30,000 teams were sending more than 200 million messages per month. Slack’s ability to convert free users into paid subscribers was unprecedented, leading to a valuation of $1 billion just eight months after launch without any traditional advertising. See more here.

Slack’s success was not just about offering a great tool; it was about creating an ecosystem that supported productivity and collaboration in a way that felt enjoyable and effortless.

Today: Transforming the Way We Work?

Many startups have tried to change how we work but few have done it as quickly and successfully as Slack. More than 6 million people, 50,000 teams, and some of the biggest companies in the world use Slack to "Be Less Busy."

Now, Slack's biggest challenge is to show it’s useful for more than just work chat. It needs to expand into new markets and build out its features even more.

Key Lessons from Slack’s Inspiring Story?

1. Listen to Your Customers

From the beginning Slack’s team carefully watched how users used their product. By collecting and acting on feedback, they improved Slack to better meet real needs. For leaders, this underscores the value of being responsive to customer input.?

Are you truly understanding and responding to your users’ needs?

2. Embrace the Pivot

Slack’s shift from a failed game to a groundbreaking communication tool shows how important it is to pivot. Knowing when to change direction—whether because of market conditions, user feedback or internal issues—can be key to achieving success.

Are you willing to pivot when necessary?

3. Focus on Product Excellence

Slack’s success was about building a superior product. The founders’ background in gaming helped them make Slack engaging, as they were skilled at making repetitive tasks enjoyable—a key aspect of any successful game. This expertise translated into Slack’s design, making work-based communication more enjoyable and interactive. Business leaders should strive to create products that not only solve problems but also delight users.?

How can you elevate your product to stand out in a crowded market?

Is there a more inspiring story than this for entrepreneurs who are afraid to start their dream startup because of the fear of failure? How can your business apply these lessons from Slack? Have you tried any similar strategies and what were the results??

?? We invite you to share your experiences and insights—your unique story helps and inspires others.

If you enjoyed learning about Slack’s success and want to read more about the humble beginnings of other major players in the SaaS space, check out our blog post Most Successful SaaS Companies: 5 Success Stories to Follow