In a rapidly evolving business environment, leaders are being challenged to revisit their management styles. Airbnb CEO Brian Chesky has ignited a new wave of debate around leadership approaches, specifically “founder mode,” a term recently popularized by Paul Graham, co-founder of Y Combinator. The concept calls for a more hands-on, detail-oriented approach to leadership, which Chesky has fully embraced. While some view this as a form of micromanagement, others see it as an essential strategy for building resilient, innovative organizations.

Chesky, who has steered Airbnb through multiple crises, provides a compelling case for the effectiveness of this approach. During a candid discussion at the Skift Global Forum 2024, Chesky described how the pandemic forced Airbnb to rethink its entire operation. Within eight weeks, the company lost 80% of its business, and Chesky had to make rapid, strategic decisions to rebuild from the ground up.

His inspiration? Steve Jobs. Drawing on lessons from Apple’s near collapse in the late 1990s, Chesky collaborated with former Apple leaders, Jony Ive and Hiroki Asai, learning the value of diving deep into every aspect of the business. Chesky asserts that true leadership means understanding the intricate details of your company—a philosophy he now lives by.

Founder Mode or Micromanagement?

The idea of founder mode has sparked both praise and controversy in Silicon Valley. Detractors argue that it risks turning leaders into micromanagers. Chesky, however, draws a crucial distinction between micromanaging and partnering with employees. He emphasizes that founder mode is not about controlling every decision but about being deeply involved and collaborative. “It’s like leading a cavalry and not knowing how to ride a horse—it makes no sense,” Chesky said.

His perspective highlights an important point for leaders: a CEO doesn’t need to do everything, but they must understand the key elements of their organization to make informed, strategic decisions. This approach has allowed Chesky to ensure Airbnb’s product and services are aligned with the company’s long-term vision, even in turbulent times.

The Strategic Impact of Founder Mode

What’s particularly intriguing about Chesky’s leadership evolution is how it reflects a broader trend in the tech industry. In a world where disruption is constant, the ability to adapt quickly and take personal ownership of business outcomes is becoming more critical. Founder mode empowers leaders to stay connected to their company’s core mission and innovate continuously.

For instance, Chesky’s collaboration with OpenAI CEO Sam Altman shows how forward-thinking leaders leverage partnerships and emerging technologies to remain competitive. Chesky’s involvement in OpenAI speaks to his broader belief in artificial intelligence as a transformative force. By positioning Airbnb to harness A.I. as the “ultimate travel concierge,” Chesky sees an opportunity to personalize travel experiences while tackling challenges like over-tourism.

Leadership Lessons for Executives

There’s a valuable lesson here for executives across industries: great leadership in times of disruption requires more than just overseeing operations. It demands an intimate understanding of the business’s mechanics, an openness to innovation, and a willingness to collaborate across all levels of the organization.

Founder mode, as Chesky demonstrates, isn’t just for startup CEOs—it’s a mindset that any leader can adopt. It’s about blending vision with execution, understanding the strategic role of technology, and keeping a pulse on the needs of both the business and its customers.

IBG Insights

1. Stay Engaged in the Details: Leaders must dive into the core operations of their business. Understanding the intricacies allows for more informed decisions and stronger alignment with long-term objectives.

2. Collaborative Leadership: Founder mode isn’t about controlling every aspect but fostering close partnerships with teams. It’s about working together to refine products, services, and strategies.

3. Leverage Disruption for Innovation: Use challenges as a catalyst for innovation. Chesky’s adoption of A.I. to personalize Airbnb services shows how leaders can turn disruption into opportunity.

4. Adopt a Growth Mindset: Every CEO—whether a founder or not—can embrace founder mode. It’s about continuously learning, understanding your business, and leading with purpose.

By adopting the principles of founder mode, executives can build more resilient, adaptive organizations capable of thriving in an ever-changing business landscape.