Blitzscaling 20: Final Recap and Student Discussion

Executive Summary:

  • Key topics covered in the CS183C class on "Technology Enabled Blitzscaling" including when to blitzscale, blitzscaling techniques, maintaining innovation at scale, and transitioning from operator to strategist roles.
  • Discussed examples of companies like Airbnb, YouTube, Google, Nextdoor, and Netflix that had to blitzscale due to external threats or network effects.
  • Highlighted challenges of sustaining innovation and maintaining culture as companies grow, with advice on building great teams and transitioning leadership roles.

Meeting Notes:

Introduction and Overview of the Class

  • Final informal session of the CS183C class on "Technology Enabled Blitzscaling" with food and drinks
  • Recap of key topics covered throughout the class

When to Blitzscale

  • External conditions and threats can drive the need for blitzscaling
    • Chris Yeh discussed how Airbnb had to dramatically increase expansion pace into Europe due to competitive threat from the Samji brothers
    • Chris Yeh mentioned how YouTube had to address exponentially growing spending, whether they liked it or not (blitzscaling situation)
  • Importance of network effects in determining when to blitzscale, as discussed by Reed Hastings from Netflix - some businesses don't have strong enough network effects to justify blitzscaling

Blitzscaling Techniques

  • Doing "things that don't scale" to seed initial growth
    • Examples: Chris Yeh mentioned Google having crazy hiring rules, Nextdoor going door-to-door for initial neighborhoods
  • Bringing in external talent to supplement internal teams as companies scale (Selina Tobaccowala at SurveyMonkey)
  • Maintaining culture and values while scaling rapidly
    • Keeping teams small and focused even at large scale (Google)

The Challenge of Maintaining Innovation at Scale

  • Difficulty of sustaining innovation as companies grow larger
  • Approaches:
    • Acquisitions
    • Dedicated innovation teams/labs to drive new innovations
  • Importance of company culture and values in driving innovation
    • Examples: Apple's closed culture vs Mozilla's open culture

Hiring and Building Great Teams

  • Emphasis on hiring the best people and letting them thrive
  • Challenges of losing entrepreneurial mindset as companies scale
  • Advice: Focus on finding work you care about, not just pursuing opportunities
    • Chris Yeh highlighted the importance of working with people you want to spend time with, beyond just the mission or technology

Transitioning from Operator to Strategist

  • Chris Yeh's experience shifting from product management to strategic role at LinkedIn
    • Challenges of maintaining operational skills vs. developing higher-level strategic abilities
  • Chris Yeh now works with all product leaders on strategy due to founders' "moral authority" and broad visibility

Closing Thoughts and Future Outlook

  • Analogy of startups as "jumping off a cliff and assembling an airplane on the way down" (Reid Hastings), needing to repeat this process as the company scales
  • Encouragement for students to apply lessons learned to build great companies