Founder Mode: A Reflection on Perception and Leadership

In his essay “Founder Mode,” Paul Graham reflects a presentation given at a Y Combinator event and memorable talk by Brian Chesky of Airbnb. The article is insightful and raises important questions about the founder's experience and the concept of "Founder Mode."

So, at the end of the day, what is the difference between an employee, a mid-level manager, an executive, and a founder?

Before sharing my thoughts on this topic, I encourage you to first read Paul Graham's reflections on "Founder Mode," as my reflections directly respond to his.. This will provide the necessary context and help clarify my perspective.

I want to begin by saying that I have no illusions about uncovering every aspect of Founder Mode all at once. Instead, I offer my reflections and explore a key ingredient that may be at play—something I’ve pondered throughout my professional life.

In my opinion, the difference lies in how one perceives reality. I will first outline the levels of perception and then provide a brief conclusion and clarification.

Levels of Perception

1. Visible Phenomenon + Visible Underlying Dynamic

Definition: You see both the phenomenon (the observable occurrence or action) and the Underlying Dynamic (the force driving it).

Note: This category encompasses the clear, tangible aspects of business where the connections between actions and their results are evident. It is where most operational decisions are made based on direct observations and measurable outcomes.

2. Visible Phenomenon + Obscured Underlying Dynamic

Definition: You see the phenomenon (the observable occurrence or action), but the Underlying Dynamic driving it is hidden and requires discovery.

Note: This level involves understanding what lies beneath the surface—recognizing that while the outcome is visible, the forces influencing it are not immediately clear. It requires analysis, investigation, and the ability to uncover hidden motivators or causes.

3. Obscured Phenomenon + Obscured Underlying Dynamic

Definition: The phenomenon (the observable occurrence or action) is hidden, and the Underlying Dynamic (the force driving it) is also hidden.

Note: At this level, neither the event nor the forces driving it are directly observable. Instead, you detect subtle signals or echoes that suggest the presence of something beyond the immediate horizon—like picking up a faint radio signal from a distant ship that cannot be seen. This involves sensing emerging patterns or market shifts before they fully manifest.

4. Unperceived Obscured Phenomenon + Unperceived Obscured Underlying Dynamic

Definition: Here, both the phenomenon and the Underlying Dynamic are obscured, and the fact that they are obscured is itself hidden.

Note: At this level, we enter a metaphysical realm of intuition and visionary creativity, where insights seem to emerge from nowhere. This is where visionary leaders operate, making decisions that defy conventional logic or visible evidence. Such leaders perceive possibilities and opportunities that are not even on the radar for others. It requires profound intuition and the ability to see beyond conventional horizons.

Explanation of the Concept and Application:

When considering how different individuals operate within these levels:

• Level 1 (Visible Phenomenon + Visible Underlying Dynamic): Employees who execute well within clearly defined roles and understand the direct impact of their actions.
• Level 2 (Visible Phenomenon + Obscured Underlying Dynamic): Experienced mid-level managers who analyze and try to uncover the hidden forces driving visible outcomes. They seek to understand what might be influencing their work that isn't immediately apparent.
• Level 3 (Obscured Phenomenon + Obscured Underlying Dynamic): Skilled and experienced executives who work closely with the founder. They are attuned to anticipating changes or opportunities that the founder has predicted, preparing to act on these emerging signals even before they become evident to the broader market.
• Level 4 (Unperceived Obscured Phenomenon + Unperceived Obscured Underlying Dynamic): Visionaries who operate in a realm that others might ridicule or dismiss. They perceive potential futures and innovate based on ideas and insights that are not grounded in the present reality but rather in a future that only they can see (think of Elon Musk).

When discussing the ability of individuals like Steve Jobs to operate at different levels, it's clear that he could perceive at Level 4 while also focusing on Level 1 to handle specific details (e.g., debating over font choices). However, I believe that when he was focused on Level 1, he could no longer perceive at Level 4—he was too deep in the weeds.

Regarding Apple's annual retreats, I believe that reaching higher levels (Levels 3 and 4) often requires stepping away from day-to-day operations (Levels 1 and 2) to engage in deep thinking or retreats that allow the mind to explore these advanced levels.

Moreover, this provides an opportunity to guide those at Level 3 to start trusting their intuition, seek beyond-the-horizon signals that were not initially predicted by the founder, and progress to Level 4..

In the end, much like the levels of perception, "Founder Mode" involves both what we can see and what remains hidden. Often, we aren’t even aware of what we’re missing. But I believe that together, we can look beyond the horizon to better understand what truly defines Founder Mode.

#Visionary #Leadership #Entrepreneurship #Innovation