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You Know What To Do

2025-08-21 14:59:22

One of the most consistent observations I’ve had in my time in startups, scale-ups, and public companies is that smart people with context on a tricky situation almost always know exactly what they need to do.

Teams obsess about company strategy, about data, and about frameworks for decision-making. But I’ve found that for most operational decisions the right course of action is actually pretty obvious to people with a lot of business context.

It’s Hard to Be a Hard Ass

The simple fact is that people hate confronting difficult decisions. And instead, most come up with increasingly painful coping mechanisms to avoid conflict. Eventually they wind up incurring much more aggregate pain than if they had simply bitten the bullet as soon as they recognized the realities of their situation.

Some of the more notable instances where this plays out:

  • Should we fire <some exec>? You almost always already know whether they’re good or not (if you’re asking, the answer is no)
  • Should we do a layoff? The answer is less definitive, but you almost always know in your heart whether or not a layoff needs to happen
  • Should we cut this product? In today’s cutthroat markets, a middling product tends to be a dying product and the potential of great products is immediate and extreme
  • Is it time to sell the business? If you’re out of gas or slowly dying the decision to sell is obvious. On the positive side, a truly amazing acquisition opportunity will typically be very obviously excellent (e.g. several times higher than prevailing public multiples for growth startups, or selling for a 200x revenue as a startup)
  • Is it time to shut down the business? Again, in every case where I’ve seen someone grappling with this question, the look in their eyes told me everything that I needed to know

Do The Right Thing

The fact that the right business decision is so often obvious leads to a few actionable operational steps.

Lean Into Discomfort

If you’re torn between multiple choices, the path that makes you most uncomfortable is unfortunately almost always the right one. There’s a very strong human tendency to avoid hard decisions, so the errors you make will only go in one direction. Pay attention when you hear any of the tells below – in particular watch out for the word “just” which is a calling card for an argument that’s really an excuse:

  • I know we shouldn’t make them a manager, but they really want it and it should be fine if we just do it once
  • We just need to give the team another shot at this one
  • The team will be really upset if we kill that project, let’s just give it a few more weeks
  • We’ll be fine if we just close this next quarter strong

Gather On-the-ground Feedback

Since people close to a problem almost always know what to do, teams must be open to difficult feedback from inconvenient sources. Especially as organizations grow, the difference in comprehension between an expert who is close to a situation vs. someone who’s further away or not an expert can be night and day. Favor proximity (and expertise) over title.

A common type of error that one sees is a friendly, charismatic, highly-visible executive who is very popular with more junior members of other teams but seen as incompetent by his peers and senior staff. The senior veterans who are closest to the situation know what to do, but they avoid providing the harsh feedback because it’s awkward and seen as not worth the effort.

Data-Driven Dangers

The cult of being data-driven, particularly at huge consumer companies with non-intuitive user behavior patterns, has led many people to believe that there are non-obvious nuances to every situation. In reality, most business and management situations do not have a lot of nuance.

  • The business line sucks: It isn’t showing signs of life, it’s obviously non-viable.
  • An executive is screwing up: They’re probably screwing up many dimensions of their job all at once - missing numbers, weak team, cost overruns.

Being data-driven has many merits, but its most debilitating flaws are that it favors certainty over speed and trains teams to look for subtle nuances that don’t exist 99% of the time. If you know what to do, you should just do it as soon as possible rather than waiting for more information. If you’re a smart and experienced executive, don’t let the siren call of more data gaslight you into re-running the analysis on a situation where you have certainty.

Having worked with teams as an advisor/investor in the past, I’ve also found that external advisors can be very helpful to simply confirm what teams already know. Importantly, these external forces can also help informed teams to assess severity. In a pinch, one of the easier ways to get a gut check is to ask a trusted friend to rubber duck a difficult management decision with you. Just explain the challenging call to them, and have them ask occasional questions until it’s clear what to do. Some of the most useful discussions that I’ve had with companies begin with someone simply asking “is this normal?”

You Owe Your Team Decisiveness

Finally, you actually owe it to your team to make the hard calls that you know to be correct. Many leaders fall into a state of paralysis because they don’t want their team to blame them for making the wrong decision. They would do better to respect their team’s macro analysis more: everyone who joins your team is ultimately doing so because they trust your judgment on some level. Well run companies are benevolent dictatorships not democracies, and your team will respect you more for decisive action than they will for a theoretically higher hit-rate on your decisions.

You Have Too Many Metrics

2025-08-02 14:59:22

Metrics can be incredibly powerful. But you have too many of them.

Let’s talk about how and when to use metrics.

The Golden Rule

The golden rule of metrics is this: any metric you maintain should directly drive action if outside expected bounds.

The reason this is an important rule is:

  • Metrics are expensive to set up, so if you don’t use them, you’re wasting effort
  • Metrics are expensive to maintain, so if you don’t use them, you’re wasting effort
  • A metric that doesn’t drive action is a waste of time

A direct corollary - because the cost of setting up, maintaining, and actioning on metrics is high, you shouldn’t have that many metrics.

Let’s talk about setting up metrics and how to use them, as well as how to not use them.

Using Metrics

Setup

Setting up a metric takes time. You have to:

  • Get the data
  • Hook it up to a UI
  • Monitor it to make sure it’s right and doesn’t fluctuate

Depending on your company and the metric, this could be a couple hours of work or a couple months of work via multiple tickets. Some tools give certain metrics by default, but that’s also not free (you’re paying for it).

The takeaway is that setting up metrics cost time and money.

Using Metrics

Good metrics:

  • Have a regular review
  • Have an expectation on the behavior of the metric
  • Prioritize action if the metric isn’t what’s expected

Regular review

Regular review of metrics is critical, because any metric you don’t regularly review will eventually become inaccurate.

Many people come back to a metric a year after setting it up and realize it doesn’t look quite right. Upon investigation they realize a week ago someone changed the definition in middleware and it started double counting. This kind of thing happens all the time. The most pernicious version of this happens when the metric looks like things are working well, while actually it’s overreporting and things are having issues.

Regular review scrutinizes the metric value as well as matches it against other information to ensure it seems right. As a general milepost, expect to find something broken in a metric about once a year, needing repair.

Expectations

Metrics without expectations are just gossip prompts.

Some metrics only matter if they move > 10%. Some matter if they’re .1% off target.

State explicitly what your expectation is for a metric and the conditions of action in either direction. Otherwise, metric review will become an exercise in taking a really long time to realize people don’t know what matters.

Prioritization of action

If a metric is outside the bounds of certain expectations, you must take action. This is the biggest cost to maintaining metrics - you actually have to do something if the metrics indicate something you’ve said you don’t want to happen.

Too many people have 25 metrics in their dashboard and don’t do a damn thing about anything. They just go back to the same backlog they were working on and put away the shiny metrics for powerpoints when they need to convince someone of something.

Metrics should have expectations. If those expectations are not being met, action must be taken.

Examples

Let’s talk through a couple examples.

The Ambitious PM

An ambitious PM has a bunch of metrics in a dashboard. The PM uses them for things like: showing how well their team is doing, and asking for a raise, and asking for more resources.

The problem is that they only review those metrics in preparation for those activities. They actually have no regular review, and no owner, and no clear expectation of what it should or shouldn’t be.

Then one day the PM’s boss wakes up and says wait, this isn’t quite right. And that’s when you find out not only is the usage data wrong, but even if it was right, the whole concept of appropriate growth was not aligned upon. So in fact, all of these metrics were, for their entire lifetime, worse than useless.

Instead of showing the micro-cohort CSAT for 7 different customer profiles across 3 products, their manager should have asked to see one or two metrics, and should have scrutinized them regularly, with clear expectations on growth (not just that up and to the right is good).

The Cost Review

It’s common practice to regularly review infrastructure cost at companies with the finance team. Oftentimes these processes have two things correct: they review metrics and each piece of infrastructure has an owner. The common failure, however, is to not discuss what good and bad actually looks like.

When do we actually have to do something about a cost changing in a certain way?

This question is often never asked, and so people debate minor cost fluctuations and lack clarity on if any changes are needed. The simple answer is to set up a working agreement: we’ll review the cost to make sure it all makes sense, but we’re only actioning if it’s more than 2% above the quarterly forecast or 5% over the yearly forecast. And, if it’s above that, you must take effort to reduce it.

With this agreement, you gain efficiency when things don’t require action, and direct clarity when things do.

Summary

Having a few great metrics is much better than having a bunch of trash metrics. Metrics require intense focus to keep accurate and to have high integrity. Metrics require expectations and action to be worth spending all of the time it takes to make them accurate and have high integrity.

If someone says “I got metrics” ask them the last time they did something because of a metric. If they don’t immediately know, they don’t have metrics, they have a dashboard of graphs that they use to persuade people and sooth themself.

Naming Software Teams

2025-07-06 14:59:22

Forming a new software team is easy to get wrong in many ways, including:

Here, however, we’ll focus on one of the most important and often bungled aspects of team formation - the team name.

Let’s review how to avoid the common trap of naming teams poorly.

What’s In A Name?

Let’s assume that you have a team with a good mission (this talk is good inspiration for crafting high-quality team missions).

Now you’re ready to name the new team, which is when things commonly go awry. Even if you have a great team mission, you can shoot yourself in the foot with the name.A strong name:

  • Blocks mission creep
  • Lets 80% of the org route 95% of questions the right way, instantly

Names Imply Mission

Names are sticky. Missions live in docs nobody reads; names live in brains.

It is incredibly easy for a broad team name to lead to mission expansion down the line. When asked if it is appropriate to upscope a team’s mission, people always say “well we are the _____ team after all!”

People often mildly upscope their name to be more ambitious than their mission. Then, over time two teams who have upscoped their mission end up believing they both own some hot new area of technology.

Then people fight viciously.

A good team name doesn’t overlap with any other team and doesn’t allow for major upscoping of ownership.

Team Names Are Routers

People in large organizations burn thousands of hours just finding the right Slack channel to get answers they need. Asking questions to the proper team, finding the right people for projects and incidents, and all other routing activities are a massively expensive set of endeavors when compounded over hundreds or thousands of people. If a team is named properly, you can create major efficiency every time someone needs to figure out who owns what.

There are a couple big failures in team naming as it pertains to routing:

  • Ambiguous names leave everyone unsure. This leads to inefficiency, hot-potatoing of questions, and the team often being left out of conversations. e.g. The Blue Team gets mad when people don’t bring them into the Redis conversations. They own redis gosh darnett! Well, they’re named the Blue Team so who the heck would know.
  • Overly broad names make people throw everything at you. If you name yourself something like “The Platform Team”, don’t be surprised when literally every possible question and everything that other people don’t want to do gets sent your way.

Examples

Let’s make these ideas real with an example. Let’s create a fake team that has the following properties:

  • Its core mission is to own a vertical slice of functionality of Widget A
  • It owns areas B and C that are tiny frontend infrastructure libraries and have nothing to do with its core mission.

Here are good and bad team names.

Bad

  • “Widgets” — another team owns a widget. Turf war in 3…2…
  • “Frontend Experience” — congrats, you now own every pixel that nobody else wants.

Good

  • “Widget A” — crystal clear. B and C routing is a rounding error.
  • “ABC” — if you must, but brevity beats cleverness.

Final Thoughts

Teams often want to avoid tightly scoped team names so they can expand in the future. They’ll also claim that it allows them to think more broadly about a problem space. However, in general:

  • You can always expand a team name in the future. Having a name change as a requirement for team mission expansion prevents unintentional scope creep.
  • Many teams regret making their scope too broad from the start, because they find they can’t accomplish that scope but they get all the accompanying support and questions.
  • People that are going to think broadly are mostly going to do it anyway.

Team names are contracts that define who does what. Getting them right up front is an incredibly important piece of scaling software organizations.

We Tried That

2025-06-26 14:59:22

A common logical fallacy is claiming something won’t work because a previous attempt failed.

Why It’s A Crutch

People often look to previous failures to set their future course for several reasons, including:

  • Ego. If I couldn’t do it, nobody can.
  • Negativity bias. Failure hurts, and people often want to avoid risking it again, to a fault.
  • Ignorance. People just don’t know how things could be different.

Let’s talk about why trying again often works.

Things Have Changed

Especially if there has been a long time between attempts, people often underestimate how much has changed.

Maybe five years ago the company tried a product rebrand, but the number of things to update in the UI ended up causing them to abandon it for other priorities. You might nix the idea of a rebrand if it came up again today, but you’d fail to realize that a whole design system was implemented in the interim, and the level of effort is an order of magnitude less.

New leaders, people, processes, teams, and architecture all contribute to a changing environment that can make very similar attempts yield wildly better results.

Different People Get Different Results

People often undercount their personal contribution to previous failures. Oftentimes they say something can’t be done because they tried it, but the main problem was their leadership, skills, or often their own personal interest level.

New ownership over a project can make all the difference. Just because I missed a three pointer doesn’t mean it can’t be done. If you hire Steph Curry, you should start shooting.

Bad Pattern Matching

Sometimes people claim to have tried a related initiative and failed and then say the new initiative can’t work.

Maybe your team tried to sell an AI product and customers didn’t like it. So someone proposes a new one and a leader says “our customer base isn’t ready for AI products.”

Upon discovery, you find that the original product was a high complexity, high integration product, and the new proposal is a simple LLM tool to check customers’ work. These are absolutely not the same product. If you’re claiming a previous failure is prior art, you need to be sure the past failure and new attempt are almost exactly the same.

Success Is Multifaceted

Often it actually requires all of the above things to change for the opportunity to now be available.

Think of a key opening a lock - many people say “we tried pushing several pins up and it didn’t work”. Well, to open a lock you need to push all the pins up in the exact right way at the same time.

People often seriously struggle to see interconnected problems in this way. Take the example of revamping a component of your compensation philosophy. To change your whole equity program, you might need:

  • A lack of stock dilution pressure on your public company, or a very high private valuation, to provide the budget to bridge the transition between systems with strategic grants
  • A compensation leader who can do a person-by-person analysis of how to transition
  • Heads-of-functions are are invested enough to partner on communication and enablement
  • 20 other things related, necessary conditions to be in place.

If you tried before and half of those ingredients weren’t there, it doesn’t mean it’s impossible.

When Previous Failure Informs Future Efforts

When you are going to not do something new because of previous results, you should try to distill down your learnings to the most concise and granular statements possible.

“We tried to sell a product like this before” is not a concise statement. There’s about 10,000 variables from pricing and packaging to feature set and more that could impact a product selling or not.

Examples of precise learnings:

  • Cross-team changes without direct leadership sponsorship and involvement often fail.
  • The probability of project failure increases, sometimes extra-linearly, as the duration goes over 1 year.
  • Most US customers are unwilling to spend more than about $10k on our product unless they have metrics they can report to their bosses on the impact to their business.
  • X technology is not a good fit for our Y workload.

Summary

People bias towards avoiding the scene of prior failures. But you must analyze where the failure was and think specifically about its implications.

A good heuristic for if you’re over-biasing on previous failures is is that if you’re deciding a high volume of new initiatives based on old failures, you’re being too general and don’t really understand why it didn’t work.

It’s also always good to remember what must be done as a business. Sometimes you find people with failure-bias saying things like “we’ll never reduce support” or “we’ll never make this cost effective.” But those are things that you absolutely must do as a business, and realizing that highlights the inadequacy of their failure bias.

Your Manager Is Not Your Best Friend

2025-06-02 14:59:22

As people become managers, it’s quite common for their team members to want to commiserate with them. This is especially true for friendly, competent, reasonable-seeming managers – people want to commiserate with winners. This makes commiseration extra dangerous, as it comes with a hint of flattery (“I respect your opinion and trust your discretion”).

But commiseration, especially with your direct reports, is organizational poison. It erodes the fabric of an organization and builds factions. It leads to feelings of superiority and creates a low-trust environment – even if what you’re complaining about is made up! Worst of all, it doesn’t give other teams an opportunity to improve. If I think that HR sucks, and I commiserate with my directs about it, my team is going to treat them poorly. HR will never know why, will never fix the problem, and will just think that my team are jerks (and they’ll arguably be right). Commiseration is self-fulfilling because it’s a form of victimhood: The world is conspiring against us, the only truly virtuous team.

Commiseration comes naturally to most people, because it happens all the time in real life. As your best friend, if you come to me saying that you were just dumped by your girlfriend, you will get unconditional sympathy beyond words. You’re the best, she didn’t deserve you, you can do so much better, everyone knows you’re the man, I have no idea why you ever spent time with her. There will be no questions, there will be no need for you to explain anything about the situation, even if all you did for the last 2 years was sit on your couch smoking weed and playing Warzone, Greg. Unless you did something totally crazy or illegal, my loyalty will be immediate and unconditional, because – let’s be real – none of it matters. You’re going your way, she’s going hers, and it’s over.

As a manager, your empathy needs to be highly conditional. Your job is to get to the truth of a matter in a respectful way, not make your team feel good. You are largely stuck with your coworkers, and you need to get stuff done together or everyone suffers. If you break up with your girlfriend you get unconditional sympathy. But if you break up with your girlfriend, and the 3 of us were trying to climb Mt. Everest together, I’m going to be a lot more measured in how I communicate and balance your relationship so that we can all survive the next few days.

Commiseration is generally a sensitive topic, so I’ve tried to boil down how to handle situations when a direct comes to you with grievances via some heuristics:

  • You don’t really want to debate your team in every situation, but your job is to essentially be a scientist and get to the bottom of what’s going on. If someone wants to commiserate about some other team, your first job is to ask a bunch of questions about what’s going on. In my experience, 90% of the time the situation is a grey area, and probably 30% of the time the person who wants to commiserate is actually in the wrong, on balance.
  • Your role as a manager is also to be a perspective-creator. Sure, that salesperson was overly optimistic on how impactful this custom feature was for a prospect. And sure, the deal wasn’t as large and didn’t close as quickly as they said it would. But sales incentives are a law of the universe, and sales directors need to manage around them just as much as product teams do, because not having sales incentives is even worse. And by the way, we’re not so great at estimating development timelines either. Everyone’s blood pressure should always be lower after they’ve spoken to you.
  • Bad therapists just let you rant. Good therapists let you vent, but they ask clarifying questions, and they sometimes push back. The phrase “is that actually true?” or “Can you explain that more?” are your friends. Good therapists validate feelings but they don’t necessarily validate facts. “I know you feel like you’re being a good daughter” is not the same as “you are the best daughter.” You want to be a good therapist.
  • Remove the phrase “I don’t know why they…” from your lexicon. No matter how you end this sentence, the subtext will be clear: “I don’t know why they’re so incompetent.” Instead, it’s often better to give the most optimistic view for why another team is behaving the way that they are. It might not be right, but it builds empathy which is the bedrock on which productive collaboration is built.
  • If someone is trying to get you to commiserate with them, try to speak in terms of reiterating a decision framework. Rather than “marketing doesn’t know what they’re doing,” you want to say something like “our role is to build the product and have a strong POV for marketing, and their role is to make sure that our launch generates enough pipeline. If you don’t think that’s going to happen then let’s talk to them.” The goal is to focus on objective truths rather than disparaging opinions.
  • When it comes to commiseration, people are highly attuned to nuanced communication – especially from their boss. “Well guys, we’ve got this” plus that little head nod and eyeroll is functionally the equivalent of saying “it’s all on us, the protagonists, because everyone else is a fucking idiot again.” Those words didn’t literally leave your mouth, but you effectively said it, and as a manager that’s 100% on you. As a manager your implicit communication is just as important as your explicit communication – this is not a courtroom, this is real life, and non-verbal actions can still have consequences.
  • One of the most common people to commiserate about is your own boss, or the company’s CEO. This can get highly toxic fast, and is rarely actually productive – cases of teams changing their CEO’s behavior through commiseration are vanishingly rare. The right way to pivot this conversation (or at least, the only way I’ve ever seen this play out positively) is to discuss how you can most effectively work with your boss. This is significantly more productive, and even if you still think they’re being dumb, at least you’re tackling that problem constructively.

Of course sometimes people really are AAA grade idiots. When this happens, your communication should typically address the issue, not the other team. For most situations, it’s best to say “let me follow up,” rather than “I agree that they’re dumb.” In particularly egregious cases, you can go with “I know this is a problem and I’ll get on it” or “I hear you, I’m working on it, but I can’t give you every detail on how and don’t expect ongoing updates” – this avoids gaslighting them that everything is fine, but it also stops the vent session. When the door opens to commiseration with your team, you must slam it shut.

Either way, following up is the ideal next step because it commits you to respond but separates the emotion from the action. Accumulated strong emotions leave a strong impression, especially when they’re negative emotions like bitterness, so it’s best to suck the emotion out of the conversation as fast as possible. For evidence of this, light autists often make very effective managers.

Finally – we’re all human here, and sometimes you need to commiserate with someone before your head explodes. If you must commiserate, it’s almost always best if they’re a peer / near peer, and they’re not on your direct team (you don’t share a boss). This at least dodges the situation where a manager complains alongside their team, and thereby implicitly blesses their most negative views.

AI Makes Bad Managers

2025-05-26 14:59:22

It’s performance-review season and I’m watching managers kneecap their careers. Gleefully they share the best prompts to have ChatGPT write their performance assessments - exactly the sort of shortcut that guarantees they’ll never get better at the job.

Below, we’ll break down why AI’s leaky interface is a crutch, not an abstraction layer, and how leaning on it is already stunting growth.

Performance Assessments

Performance write-ups feel brutal because you’re not great at management. Great managers improvise on feedback the way a jazz soloist riffs on a theme - always on, always smooth. That fluency only comes from thousands of hours of uncomfortable reps: hard conversations, careful wordsmithing, and the stress of getting it right.

A performance assessment is management boiled down to a page. It demands precision, empathy, and strategic thinking. Offloading that to AI means skipping the workout; your team might hear something that sounds okay, but you’ve gained zero coaching muscle.

Experienced managers know that the performance assessment is just as much about growing management skills as it is growing the skills of your reports.

AI Is a Helper, Not an Abstraction

“But wait—aren’t tools supposed to make us better?” Sometimes. The key difference is reliability. True abstractions (think memory-safe languages, spell-check, or a calculator) behave the same way every time, so you can build skill on top of them.

Management AI isn’t that. If every managerial moment were forever mediated through an AI - 1:1s, presentations, promotions - then perhaps it could serve as a real abstraction. That world is nowhere close. As a result, using AI for critical deliverables is fundamentally restricting your ability to gain managerial skills.

Dos and Don’ts

Some work is meant to hurt - that strain is the rewiring session your brain needs to level up. Letting AI sand off the edges is test-day cheating: great for today’s quiz, fatal for tomorrow’s mastery.

How to use AI for management:

  • Resume screening - Use AI. Codify your rules and let it sift the pile.
  • Selling candidates — All you. Closing talent is a core managerial muscle; don’t skip the reps.
  • Designing process — Use AI (probably). Most workflows are commodities; let AI draft the scaffolding.
  • Running process - It depends. Automated nudges and compliance checks can use AI. You should not use AI for running meetings like stand-ups or backlog grooming - those teach you how the team breathes and are critical tools for you to manage through.
  • Performance management — Keep it human. Feedback is a craft; practice it.
  • Career growth — Use AI as a sparring partner. Let it surface ideas, but you own the plan.

Rule of thumb: use AI on repetitive tasks or where the answer is absolute. If you’re thinking hard in the realm of ambiguity and human behavior, that’s learning how to manage, and you can’t afford to offload it.