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Bosses will stop working only through direct reports

Paul Graham predicts skip-level meetings will become routine, pointing to Steve Jobs holding a yearly retreat for Apple's most important staff rather than its most senior.

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paulgraham.com · Founder Mode

Paul Graham, writing in his essay on founder mode, predicts the next way of running companies will break the old rule that chief executives engage with the company only through direct reports, a shift he argues could help but remains unproven.

“Skip-level meetings will become the norm instead of a practice so unusual that there's a name for it,” Graham writes.

That is a meeting between a boss and staff two layers below, skipping the manager in between. What he means, he argues, is that a boss can talk directly to people further down rather than working only through direct reports.

His example is Steve Jobs at Apple. Graham writes that Jobs held a yearly retreat for the 100 people he viewed as most important at the company, who were not the highest ranking 100. Graham argues that pulling that off at an average company would take great resolve, yet the payoff in usefulness might be large.

Such a gathering might give a large firm the feel of a new venture, Graham argues. He writes that Jobs presumably would not have kept holding the retreats if they did not work, but adds that he has never heard of another company copying the practice.

Graham adds a limit. A founder cannot lead a firm of 2,000 the way he led one of 20, so some handoff is needed, he argues. How much freedom each team gets, and how firm those lines are, will probably differ by company and even over time in one company as managers earn trust.

Questions people ask

Why do CEOs normally work only through direct reports?

CEOs usually rely on senior managers to pass along goals, filter information, and keep meetings manageable. Graham argues that system treats each department as a sealed box, which keeps leaders from seeing problems early.

Why would inviting the most important staff help a big company?

Graham argues it might restore the direct contact of a small team, where the leader knows who is doing key work. He also suggests it takes unusual resolve to pick attendees by importance rather than rank, which is why few try it.

Does founder mode still involve delegation?

Yes. Graham says a founder cannot lead thousands the way he led dozens, so some handoff is required. In his version, the amount of freedom varies by team, and changes as managers prove themselves.