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Discuss this episode in the Muse community Follow @MuseAppHQ on Twitter Show notes 00:00:00 - Speaker 1: It was important for us that people be able to reach this level of partnership, which again is a group of peers, even if they weren’t there at the founding of the company. 00:00:21 - Speaker 2: Hello and welcome to Meta Muse. Use a software for your iPad that helps you with ideation and problem solving. This podcast isn’t about Muse the product, it’s about Muse the company and the small team behind it. I’m Adam Wiggins. I’m here with my colleague Mark McGranahan, and Mark, I know that, uh, we have to get creative with our hobbies here in this time of staying home. Uh, what have you been doing in regards to your piano lessons? 00:00:46 - Speaker 1: Yeah, well, I usually take lessons at my teacher’s house here in Seattle, but now we’re going all remote. And we actually did this once, uh, last year during some snowstorms here, which shut Seattle down, and then I just like propped my iPhone up on my desk and we did our best, uh, but now that I have a little bit more experience with this podcast and with other AV stuff, trying to do a better setup, so. Um, used a, a real mic to record and we set up multiple camera angles with my laptop video and my iPhone camera, and that’s worked pretty well. And then I think the next experiment will be actually plugging the digital output for my, for my digital piano kind of directly into an audio interface. As well as getting a vocal mic and hopefully that will improve the kind of the piano sound quality that she hears on the other side. 00:01:35 - Speaker 2: Well, excuse to play with. 00:01:37 - Speaker 1: Yeah, I would be lying if I said that wasn’t a big factor. 00:01:40 - Speaker 2: We’ve got our summit next week as well, which we’re doing all virtual we meet in person for that, so we’re also going to Try to get a little creative. I guess the whole world is is doing that to some degree. 00:01:50 - Speaker 1: Yeah, I mean, on the flip side of this, as a company, we have a lot of experience with remote, so this hasn’t been too big of a change for us. I’m talking to, uh, for example, people who are elementary school teachers and I just, I can’t even imagine. 00:02:01 - Speaker 2: So the topic we wanted to talk about today was hiring an engineering partner and maybe the Muse partnership model more generally. So I’ll link in the show notes to the job description we’ve got on the web. Beautiful design there done by our colleague Leonard. But, um, I think you wrote most of this, Mark, and, and I wanted to quote from the, the opener a little bit and, and maybe you can expand on this or explain it, uh, further. So the the page says this role is on our partner track, meaning that it has a high level of freedom and responsibility while earning a significant stake in the business. So, can you, uh, can you tell us what does it mean to be an engineering partner as opposed to, say, a soft software engineer as a regular employee. 00:02:45 - Speaker 1: So, our partnership model is, we have a very small team, all of whom are intentionally peers, including the founders, and who are treated more like owners than employees. So, in practice, I would say a partner is In between a typical startup employee and the kind of sole founder of a bootstrapped in the startup, it’s kind of in between. 00:03:08 - Speaker 2: And by typical startup employee here we talk about in the early days when it’s a small team, people have a lot of impact, I guess, on the, on the company because there’s just not that many of them, and option grants are common, which is sort of an option to buy company stock in the future if it does become valuable, uh, but at the same time, they don’t really get a lot of visibility into, say, the financials of the business. 00:03:32 - Speaker 1: Yeah, the typical model is you have the founders who are there when the company is incorporated and they get the vast majority of the equity and they have very outsized responsibility and decision making ability and and freedom and flexibility, and then you hire employees and starting with employee 1 and definitely on from there, they’re kind of a second and lower tier of staff by design. And what we want with the partnership is more of a model where those Team members are all peers, uh, in terms of the day to day work, in terms of their freedom and responsibility, and also in terms of their equity ownership in the business. 00:04:08 - Speaker 2: And just to make it concrete here, we’ve got 4 partners right now. So there’s Yumi and Yulia, with sort of the 3, that got started last year. Leonard joined us not too long after. So we’re a partnership of 4 right now, and we have maybe some contractors and things we’ve worked with, but for the For the most part, it’s really those 4. We’re all owners in the business and therefore, essentially peers. Uh, now we’re looking to fill in this 5th person, uh, who will come from an engineering background, but we want them to have that same kind of stake in the business or level of ownership or level of responsibility. 00:04:42 - Speaker 1: Yeah, exactly, and it goes both ways like you have this higher level of ownership, you have more freedom, but because this is probably the last partner that will hire for some time. There’s a lot of responsibility. Like these 5 people, they need to make the business successful together. Um, so you really need to have a really high talent density to make that work. 00:05:01 - Speaker 2: So you’ve used this turn of phrase freedom and responsibility, and I don’t know if that’s a call back to the Netflix deck, sort of internal employee hiring and culture deck, but I read this, I’ll link to it in the show notes. I read this many, many years ago and it really had a big impact on me and how I think about teams and hiring and and management. 00:05:20 - Speaker 1: Oh yeah, very familiar, a classic. And interestingly, I think it’s been both very influential, yet it’s still quite contrarian. 00:05:28 - Speaker 2: Having a lot of latitude, having a lot of ability to make choices in your daily work, also comes with it, yeah, responsibility to do the best thing for the business, and you don’t have someone sitting there telling you what the right thing to do is. And maybe this comes to the conventional relationship you often happen have between employers and employees, which is one of the boss tells you what to do and the employee knows they’re successful in their job when the boss is happy, so it’s really largely about pleasing what whoever has the authority says they want. Uh, which produces some, some strange dynamics, uh, sometimes and some power. Obviously there’s a huge power asymmetry there as well. 00:06:10 - Speaker 1: Yeah, and that was a big motivation for me in designing our partnership model. I wanted individual success to be measured by the market as much as possible, so it’s not about pleasing your boss or getting some committee to give you a certain rating. Um, there’s one or two people who are working in each discipline, so it’s very clear if your work is having the right impact for the business. 00:06:30 - Speaker 2: And maybe we can talk about the terminology of calling it partners or partnership, and in particular, in contrast to the term that you often hear in Silicon Valley, which is founder. So what, what’s the difference there? Why do we use this term partner? 00:06:45 - Speaker 1: It was important for us that people be able to reach this level of partnership, which again is a group of peers, even if they weren’t there at the founding of the company. There’s certain things like you’ll always be able to call yourself, you know, a member of the founding team or a founding partner, but we think it’s important that people can come in, uh, demonstrate their skills, prove their value to the business and join this group of peers as a full partner. 00:07:11 - Speaker 2: Yeah, founder is a funny piece of terminology, right? It’s not a job title. It’s not like VP of engineering or something. Uh, it’s a statement of where you were at a particular time. And I’ve certainly used that title for myself quite a bit on, you know, CVs or whatever, just because, yeah, I do start companies, that’s sort of my, um, my career. And, and so when you’re doing a jack of all trades, just getting things off the ground, uh, type of a role, well, founder does seem like the right description for that. But it does rule out people coming in later and having a really big, or even a foundational, you might say, impact. Uh, and I think of some famous examples of this. For example, uh, Howard Schultz, I think it’s the fellow’s name from Starbucks. He wasn’t one of the founders of Starbucks, but he, in the sense of being this pivotal person that helped make it what it is today. He was, or that we just don’t have a word to talk about that, basically. 00:08:12 - Speaker 1: Yeah, and typically there’s a very narrow and rare path for people to say become a CEO externally, and that happens sometimes, of course, um, but the default path is you read the job description and it says like employee of X division, you know, doing this subset of that thing and even before you’ve talked to the first person at the company, it’s clear you’re going to have a very prescribed and small impact, whereas if you come in and say with the job description. You’re going to be a partner in this business, you’re going to own a big chunk of it, and we’re going to expect and hope that you step up to that with your contributions. Um, you’re setting a much higher ceiling for people to reach up to. 00:08:49 - Speaker 2: The one thing I was concerned about when we got this off the ground and 3 of us, the 3 initial partners had this idea to have this small talent dense team was that it would really restrict our, certainly our ability to grow quickly, although that wasn’t, uh, specifically a goal for us to grow the team quickly. But actually that we would rule out the ability to hire a potentially really great people, really great people in that particular craft who don’t have that other dimension of either their skill set or maybe just their interest. Being an owner of a business and feeling that responsibility for the whole thing being successful, versus kind of focusing on your craft and your specialty. It is not something everyone can or or wants to do. And so we rule out being able to hire some a really great software engineer who doesn’t want to be a business owner and be worrying about the fundamentals of the business. Um, and so I was, I saw that as a risk. I felt like when Leonard joined us, uh, that was a great validation of this model because he wanted that. He wanted to. You know, this is a very talented guy. He had the option to go lots of, uh, very prestigious big tech companies. And one of the reasons he told me that he, he wanted to work with us is that chance to have a high impact and be an owner in. Uh, in a business. And so he’s both really great at his craft, which is design, but he also has the mindset to care about, pay attention to, and contribute to all the other aspects of the business. 00:10:22 - Speaker 1: There’s only a subset of people who are interested in this model, and that’s fine because within that universe, they seem especially interested in what we’re doing and kind of more inclined to join our venture versus a typical startup where they’d be, you know, employee number 76 and earn 0.01% or whatever. Um, so I think it’s kind of concentrating and focusing our recruiting ability into uh the type of people who we most want to work with. 00:10:50 - Speaker 2: Now, this works for a 5 person team, maybe you could even imagine 67. I don’t necessarily imagine it would scale to, I don’t know, 1520, 25 people, um, but how do you, how do you think about that if we did at some later time feel like we did want to grow the, grow the team because the opportunity in front of us or the, the, um, money we’re earning from customers makes it possible to do that. 00:11:15 - Speaker 1: Yeah, I think maybe there’s separable axes there. So I think it would be harder to have partners as you go beyond 67 people, although there is precedent for that, of course, and professional services firms that have big partnerships, uh, but you, you might be able to separate kind of how many employees, how many staff total you have versus what percentage of them are are partners, even if there’s some coupling there. I would also say that we did. Design the partner model, kind of the current iteration of it, specifically for 4 to 7 people, because that’s the size of one team, or maybe 3 to 7. And when you go beyond 6, maybe 7 people, you don’t really have one team anymore. You have 2 teams that you like, you know, team divisions and like extra communication and coordination and decoupling and stuff like that. And it’s kind of a different way of operating. You can, you can’t do it totally as modically mind melting like we do now. So I think it would also change in that respect if we move beyond 7 people, but I’m hopeful that we can um get quite far with this small team again, because of the talent density and because of the leverage you can get these days with SAS. 00:12:20 - Speaker 2: And it’s interesting change for both of us maybe because we do come from that startup background where hiring and growing the team quickly is seen as an absolute requirement. And uh you were an engineering manager, ran a team at Stripe. How big was that or how many people were sort of under your um authority there? 00:12:41 - Speaker 1: Yeah, I managed teams from like 3 to about 50 at Stripe, so I saw a gamut and indeed a huge part of your time as an engineering manager at a company like Stripe, we are growing very quickly, is actually the mechanics of growing a team. So it’s like, you know, recruiting, interviewing, onboarding, training, team, cell division, off boarding. I probably spent like half my time doing that. And so part of the idea with a deliberately smaller partnership is you can spend more of your time focusing on the actual products in the business. Now there’s anything wrong with doing those other things. I quite enjoy them. Um, but if you, if you want to grow very fast, you have to invest a lot in it and it necessarily detracts from your work on the product. 00:13:24 - Speaker 2: Yeah, certainly for me, there was an appeal to being in more of a maker mode, be able to spend more of my time doing writing, product development, design, and so on. Uh, at Hiroku, I was my sort of my largest management experience and at one point had a, yeah, quite large, uh, team under me there and you can do a lot with a big team of expert people. It’s, it, it, it can be a really amazing thing and there are super, uh, opportunities very worth going after that that basically require that. Uh, but then on the other side of things, yeah, being able to make stuff and be really close to, I don’t know, I like a pretty close personal relationship with quite a lot of our, um, our early users and now customers, and that’s a lot harder to do if you also need to be, uh, making your team and all of the, the care and feeding of that, uh, your priority. 00:14:18 - Speaker 1: Yeah, and to circle back to something we mentioned earlier, I think you have that. That much more direct relationship with the customers and the product and and again the evaluation loop is much cleaner, with a large company, you have like, you know, various management chains that are quite deep, you have the different functional areas, you know, you have multiple phases of roadmap planning, the evaluation process is very complex, and so you end up spending a lot of your brain cycles like managing that social dynamic, uh, whereas here I think we have much more focus on our product and our customers. 00:14:51 - Speaker 2: The time that you need to put into getting everyone on the same page, even…
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