A framework that’s more useful than “Founder Mode” 🛠️

Understanding when to delegate and when to micromanage

Paul Graham’s essay on “Founder Mode” went viral on Twitter/X this past week as a guide for hands-on management.

The piece suggests that founders should adopt an always-on approach, staying deeply involved in every aspect of the business.

While this can be inspirational, it’s also dangerously vague.

For those of us in the trenches of direct-to-consumer (DTC) brands, we need more concrete strategies.

After re-reading the post a few times, I came to the conclusion that Keith Rabois framework for delegation is actually a more useful guide for active management.

Delian Asparouhov (who worked with Keith at Founders Fund) went deep on how Keith thinks about running teams in his post here. IMO - its a better, more practical read than Founders Mode.

I will attempt to summarize the key points of Keith’s framework here to help highlight a more useful strategy for those of us still operating.

1. The Problem with “Founders Mode” Micromanagement

The worst interpretation of Graham’s “Founders Mode” is the idea that founders and managers should micromanage everything, all the time.

Founders (and PG) often rationalize this by citing Steve Jobs or other legendary figures, who were deeply involved in the minutiae of their companies.

But emulating this approach often leads to burnout, low employee morale, and a bottleneck in decision-making.

I’ve seen this happen in real-time and it makes the simple tasks of running a business more difficult than they should be.

It’s also not super effective (or fun) for the manager themselves when they are stuck working on low leverage tasks that they hired other employees to do.

2. Contextualizing Micromanagement with the Keith Rabois Delegation Quadrant

Keith’s framework offers a far more practical approach to delegation and active management.

Instead of micromanaging everything, Keith suggests evaluating each task through two lenses: level of conviction and consequences of decision.

Here’s the breakdown:

• High Conviction / High Consequence of Decision:

  • These are the areas where it makes sense for a manager to step in. If something is critical and could have a significant effect on the business, this is where your hands-on attention is justified.

• Low Conviction / Low Consequence of Decision:

  • These tasks should be delegated, giving your team the chance to learn and make low-stakes mistakes. This also frees up the managers time to focus on more higher leverage activities.

Keith’s Delegation Quadrant

3. Leveraging Micromanagement in Context

My main takeaway is that micromanagement isn’t inherently bad, but it must be deployed thoughtfully.

Instead of being constantly in “founder mode,” founders and managers should reserve their involvement for situations where their input is necessary.

This balance not only empowers employees, but also creates a more scalable and sustainable business model.

By contrast, Graham’s advice can encourage founders and managers to spread themselves too thin, leading to inefficiency and ultimately, burnout.

4. The Case for Keith’s Practical Framework

For DTC founders and marketers, time and focus are our most valuable resources.

Keith’s quadrant-based delegation framework offers a more strategic way to manage our companies.

It encourages us to trust our team with smaller tasks and only step in when truly needed.

This approach helps avoid burnout and enables the entire team to learn, grow, and take ownership of their roles.

It also opens up more time for us managers to focus on higher leverage activities.

5. Summary

In short, while Paul Graham’s “Founders Mode” might sound appealing, Keith provides a more effective framework for modern managers.

Instead of micromanaging everything, we should focus on the tasks that truly matter and delegate the rest.

This way, we can drive our businesses forward without getting bogged down in unnecessary details.

In your DTC business, how do you decide when to micromanage and when to delegate? Feel free to reply in the comments and let me know!

That’s it for this week!

- Trent

Referenced articles:

• Founders Mode (https://paulgraham.com/foundermode.html)

• Lessons from Keith Rabois Essay 3: How to be an Effective Executive (https://delian.io/lessons-3)

PS: If you missed my last post on how to negotiate salary, then you can check that out here!