SIMPLY PUT: Founder Mode — the secret sauce to startup success or fancy term for hustle and micromanagement?

Silicon Valley is usually buzzing with new catchphrases every now and then. Earlier this year, the phrase “unbossing” captured corporate America’s imagination. The trend seems to be spreading in India as well with a few examples of companies firing middle managers. You can read more about the ‘unbossing’ trend in India here: What’s with all “Unbossing” talks?

Now, lo and behold, we've got a new trend straight from the minds of Silicon Valley's finest: Founder Mode. It's like a superhero cape for CEOs but without the spandex. Y Combinator Combinator co-founder Paul Graham , inspired by Airbnb CEO Brian Chesky ’s talk at an event, penned a blog post about Founder Mode and it got the entire startup world talking.

According to Graham, when Chesky scaled Airbnb, he initially followed the widely accepted strategy: hiring skilled professionals and giving them autonomy. However, this approach felt like running a marathon in flip-flops, it simply didn’t yield the desired results. So, he decided to go full-blown "Founder Mode," which is basically being the CEO, the janitor, and the motivational speaker all at once.

Graham’s post points out that this experience is not unique to Chesky — many other founders have faced similar challenges and come to similar conclusions. The result is a growing recognition of ‘Founder Mode’.

What is Founder Mode?

Founder Mode is a mindset that allows entrepreneurs to remain deeply involved in their companies’ day-to-day operations, even as they scale.

As we have seen in many Hollywood movies and real-world examples like Jobs, Musks, Zuckerbergs, and Murthys, founders operate (a bit too) differently from trained executives and managers. They're like the kids who built their own fort and refuse to let anyone else touch it.

On a serious note, anecdotal evidence does support that founders focus on the vision, processes, and details of the business in ways that managers typically do not. Graham's post suggests that it’s a different way of running a company — one that involves a hands-on approach to leadership, where founders engage with more than just their direct reports.

Unlike traditional corporate structures, where the top management is expected to delegate and step back, Founder Mode requires more personal involvement. Basically, when the CEO of a company is in Founder Mode, where founders bypass layers of management to interact directly with lower-level employees, they can just walk over to a junior employee and ask “What’s up?”, something that Elon Musk reportedly has been doing for a while.

One of the core aspects of Founder Mode, according to Graham, is that founders can make decisions with a level of intuition and insight that professional managers often lack. This is largely because they’ve built the company from the ground up and have an intimate understanding of its operations, culture, and customers.

In contrast, professional managers are typically brought in to optimise and scale systems that are already in place, which might often lead to decisions that feel disconnected from the original vision of the company.

Steve Jobs and Apple: The classic example of Founder Mode

A key example that Graham used is Steve Jobs, who famously ran Apple with an almost obsessive focus on product and design. Jobs didn’t simply delegate these responsibilities to his team; he was known for being involved in the minutiae, often directly challenging decisions and leading initiatives that others might consider too detailed for a CEO.

Graham drew a parallel between this approach and what Chesky realised at Airbnb — that stepping back too much can actually harm the company. Founders, Graham wrote, are often “gaslit” into believing that they should adopt a more hands-off style, only to see their businesses suffer as a result. However, many experts also believe that Founder Mode is often disastrous for companies, except for rare examples, and a balance between founder and manager modes is necessary.

Founder Mode VS Manager Mode: Experts weigh in on the debate

Debates around Founder Mode have been rampant across social media since the beginning of this month when Graham’s blog post came out. The philosophical divide between Founder Mode and Manager Mode often compels people to choose sides, while industry veterans and experts say that it’s important to understand both approaches and companies must try to achieve a balance between them.

Sonica Aron (She/Her/Hers) , Founder of HR advisory firm MarchingSheep , recognises the importance of managers and says that it is important to have good people in the team and empower them.

Talking to Business Insider India, she says, “As a founder, I find myself to be very purpose driven and passionate about my firm. As a result, sometimes decisions tend to get driven by the heart rather than the mind. Therefore it is essential to have bright and committed people in your team, empower them, involve them in decision making. Also, as the founder, I am responsible not just for the health of my business but overall well being of my team. If they do well, we all do well.”

On the other hand, Srinivasa Addepalli , founder and CEO of GlobalGyan Leadership Academy , feels that the debate of Founder Mode vs Manager mode shouldn’t exist in the first place. He told Business Insider India that according to him, “all good leaders, whether startup founders or corporate executives, must be capable of both modes and switch between them depending on the context.”

He added, “The Founder Mode leader tackles problems with passion and ownership, without concern for hierarchy, precedents, or due process. However, founders must remain humble about their fragility. To ensure sustainability, the Manager Mode—focused on developing others, building structures, and codifying knowledge—becomes essential, even as it requires them to relinquish some control and accept inefficiency. For instance, Steve Jobs’ decision to set up Apple University was a classic Manager Mode action by one of the best-known founders.”

Ayush Singh , Founder of MaplePods , a smart-technology business, says, “Founder Mode may inspire new entrepreneurs, but seasoned founders know building something meaningful and scalable requires more than motivation—it's about solving problems, staying resilient, and seeking real support along the journey.”

The downsides of Founder Mode

While there are many people who believe that entering Founder Mode is healthy, some experts argue otherwise. They say that since founders are deeply connected to their vision, staying too hands-on can lead to micromanagement and hinder the growth of a leadership team. This creates a culture of dependency and can cause chaos when a founder steps into too many areas, leading to inefficiency and fear among employees.

Ankit Aggarwal , founder and CEO of Unstop, told Business Insider India, “While Founder Mode can foster an entrepreneurial culture and drive rapid growth, it comes with significant challenges related to scalability, accountability, and founder burnout. As companies scale, Founder Mode can lead to bottlenecks, as founders may find it difficult to delegate. This limits the development of a strong leadership team and may stifle creativity from other employees.”

Further, he adds that intense involvement can lead to founder burnout, negatively affecting both the individual and the company.

“In the long run, while Founder Mode may work for early-stage startups, founders must recognise when to step back and 'devolve'. Devolving to allow the company to grow through more traditional structures, without succumbing to excess hierarchy. Balancing innovation with scalability is key to long-term success, allowing founders to focus on strategy while empowering their teams.”

Meanwhile, Aleksandr Yampolskiy , cofounder and CEO of SecurityScorecard , said in a LinkedIn article that the Founder Mode has both pros and cons. He highlighted the value of founder mode in providing visionary leadership and empowering CEOs to challenge their teams and boards when necessary.

However, Yampolskiy also wrote that overstepping and micromanaging can create chaos and a culture of fear. He said that founders must learn to evolve with the company’s growth, delegating and making themselves dispensable over time.

Why are people talking about Founder Mode now?

So, why did Graham’s blog post go viral and why are people talking about Founder mode? Discussions around Founder Mode vs Manager Mode might have been around for a long time, but Graham’s post helped a great deal in popularising the confusion that millions of founders go through.

Risa Mish , a management professor at Cornell Johnson Graduate School of Management , told Observer that it is “no surprise that Graham’s message has resonated with founders for whom the conventional wisdom hasn’t worked.”

“It comes down to something very basic, which is that one size never fits all.”

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