The Great CEO Within

1. Build a strong foundation: Start small and focus on product-market fit

Starting a company is hard. There are long hours, constant fear of failing, many rejections, etc.

Start with a co-founder. Having a partner to share the emotional burden of starting a company is crucial. While solo founders often experience burnout, co-founders can support each other through the challenges. However, avoid 50/50 partnerships to ensure clear decision-making.

Keep the team small. Until product-market fit is achieved, limit the team to six or fewer people. This allows for:

• Easier communication and coordination
• Flexibility to adapt to customer feedback
• Efficient prototype development
• Focused problem-solving

Define product-market fit. For B2B companies, aim for at least $1 million in annual recurring revenue (ARR) before considering scaling. Ensure customers are not only buying but also renewing and recommending your product.

2. Cultivate essential individual habits for productivity and growth

When you say it twice, write it down.

Implement GTD (Getting Things Done). Organize tasks into:

• Next Actions
• Waiting For
• Someday/Maybe
• Agenda
• Projects

Use a tool like Evernote or Omnifocus to manage these lists effectively.

Practice Inbox Zero. Clear your inbox twice daily by:

• Addressing emails that take less than two minutes immediately
• Creating Next Actions for longer tasks
• Filing emails into appropriate categories

Focus on your Top Goal. Schedule two hours each day to work on your most important objective. This practice ensures progress on critical tasks amidst daily distractions.

3. Foster effective group habits and transparent communication

There must be consequences for breaking agreements.

Create Impeccable Agreements. Ensure all agreements are:

• Precisely defined
• Fully agreed upon by all relevant parties
• Written down when possible

Hold team members accountable for these agreements, with clear consequences for breaking them.

Embrace transparency. Share both positive and negative information with your team. This builds trust and enables team members to contribute their skills and knowledge effectively.

Implement conflict resolution techniques. Use the following steps:

1. Have each person write down their deepest thoughts about the other
2. Share and acknowledge these thoughts
3. Create action items to address issues
4. Follow up to ensure completion of action items

4. Implement robust infrastructure and collaboration systems

A well-run company documents every aspect of its operations, so that its team members can easily step into a new role when needed.

Develop a comprehensive folder system and wiki. Create:

• Department-specific folders
• A central wiki linking to important documents
• Onboarding materials for new hires

Establish Areas of Responsibility (AORs). Assign each function to a single person to prevent the "tragedy of the commons" and ensure accountability.

Track Key Performance Indicators (KPIs). Identify 5-6 significant metrics for each major function and make them easily visible to the entire company.

Implement a goal-tracking system. Use tools like Asana, Trello, or Betterworks to track progress on company, department, and individual goals.

5. Master the art of meetings and feedback for organizational success

Frequent, transparent feedback is critical for building a strong culture and a thriving business.

Structure effective meetings. Implement:

• One-on-One meetings for individual accountability and coaching
• Team meetings for group accountability and issue resolution
• Company-wide meetings for transparent communication
• Quarterly offsites for retrospectives and planning

Foster a culture of feedback. Encourage:

• Asking for feedback
• Acknowledging and appreciating feedback
• Acting on feedback

Use the "Like and Wish That" format for giving feedback to create a positive and constructive environment.

6. Develop efficient processes for fundraising, recruiting, and sales

The introduction is a key part of the fundraising process, and you only get one chance at it.

Fundraising: Use the Triangulation Method to secure introductions to investors. Build relationships before pitching your company.

Recruiting: Follow the "Who" method:

1. Create a detailed scorecard for each position
2. Source candidates continuously
3. Conduct structured interviews
4. Sell the opportunity to top candidates

Sales: Focus on:

1. Building trust with potential customers
2. Identifying specific customer pain points
3. Selling results, not features

Develop a sales team structure with Qualifiers, Closers, and Farmers to optimize the sales process.

7. Embrace conscious leadership and customer obsession

Conscious Leadership is about being more interested in learning than being right.

Practice Conscious Leadership. Shift from defensiveness to curiosity by:

• Recognizing emotional triggers
• Releasing negative emotions
• Remaining open to new ideas

Cultivate customer obsession. Regularly:

• Sit with customers to understand their problems
• Observe their daily routines
• Gather feedback from customer support and sales teams

Ensure this customer-centric mindset permeates all departments, especially engineering.

8. Navigate the challenges of scaling and organizational structure

Re-orgs, like terminations, are always disruptive and cause people angst, even if the logic for them is glaringly obvious.

Implement a formal management system. As the company grows beyond 15-20 people, establish:

• Clear reporting structures
• Regular communication channels
• Performance tracking mechanisms

Handle re-organizations carefully. When restructuring:

• Consult department heads beforehand
• Announce changes company-wide
• Provide detailed explanations and Q&A sessions
• Allow time for the organization to adapt between changes

Address the technical founder's transition. For technical CEOs:

• Gradually delegate engineering responsibilities
• Focus on building trust in the engineering team
• Embrace and learn to love company building
• Consider hiring a partner to handle go-to-market strategies

Last updated: November 17, 2024