MIT Sloan Management Review Article on How to Amplify the Advantages of Working at a Founder-Led Company

“Founder mode” is a real thing. Successful executives at founder-run companies know how to make the most of it.

When COVID-19 struck in early 2020, Airbnb CEO Brian Chesky faced a devastating crisis: Bookings on his vacation-rental marketplace plummeted 80% almost overnight, and the company was forced to postpone its planned initial public offering.

Chesky responded by abandoning what he has described as a hands-off leadership style. He laid off 25% of the workforce, reorganized the company from business divisions to functional teams, and consolidated product planning into a single road map. His approach challenged the common wisdom that great leaders, especially ones who have founded a company and hired talented people, should avoid meddling and give their employees room to run. And yet, it worked. After absorbing heavy losses during the pandemic, Airbnb staged a remarkable financial turnaround: In 2021, it generated almost $6 billion in revenue, which it grew to almost $10 billion by 2023, with over 448 million nights booked through its platform.

“Too many founders apologize for how they want to run the company,” Chesky said in a 2023 podcast interview. “People think that a great leader’s job is to hire people and just empower them to do a good job. Well, how do you know they’re doing a good job if you’re not in the details?”

About the Author

Jason Shen coaches CEOs and founders at leading technology companies and is the author of The Path to Pivot: The Playbook for Founders Who Want to Reboot Their Startup (Refactor Publishing, 2024). He previously founded three venture-backed startups, including Midgame, an AI tools company acquired by Meta in 2020.

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