The essay argues that the traditional advice given to growing companies—hiring good people and giving them autonomy—often fails when applied to startups.1 This approach, suitable for established companies, can be detrimental to startups where the founder's vision and direct involvement are crucial.1 "Founder Mode" is presented as an emerging paradigm that is not yet fully understood or documented, contrasting with the conventional "manager mode" often advised by business schools and professional managers.12

Founders possess unique insights and abilities that professional managers do not, primarily because they have a deep understanding of their company's vision and culture.1 Graham suggests that founders should leverage these strengths rather than conform to traditional managerial practices. "Founder Mode" is an emerging paradigm that is not yet fully understood or documented, with Graham hoping that over time, it will become as well-understood as the traditional manager mode, allowing founders to maintain their unique approach even as their companies scale.2

As startups grow, there is a common belief that they must transition to a more structured managerial approach. However, many founders have found this transition problematic, as it often leads to a loss of the innovative and agile spirit that drove the startup's initial success.1 Brian Chesky, co-founder of Airbnb, shared his experience of being advised to run the company in a traditional managerial style, which led to poor outcomes. He eventually found success by adopting a different approach, influenced by how Steve Jobs managed Apple.23

Steve Jobs' management approach at Apple served as inspiration for Brian Chesky's "Founder Mode" at Airbnb. One notable practice was Jobs' annual retreat for the 100 most important people at Apple, regardless of their position on the organizational chart1. This unconventional method allowed Jobs to maintain a startup-like environment even as Apple grew, fostering innovation and direct communication across hierarchical levels. Such practices emphasize the importance of founders staying deeply involved in their companies' operations, challenging the traditional notion of delegating responsibilities to professional managers as companies scale23.