Ben Horowitz
Ben Horowitz
Ben Horowitzis an American businessman, investor, blogger, and author. He is a high technology entrepreneur and co-founder and general partner along with Marc Andreessen of the venture capital firm Andreessen Horowitz. He co-founded and served as president and chief executive officer of the enterprise software company Opsware, which Hewlett-Packard acquired for $1.6 billion in cash in July 2007. Horowitz is the author of The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers. In the...
NationalityEnglish
ProfessionEntrepreneur
Date of Birth13 June 1966
The thing that's confusing for investors is that founders don't know how to be CEO. I didn't know how to do the job when I was a CEO. Founder CEOs don't know how to be CEOs, but it doesn't mean they can't learn. The question is... can the founder learn that job and can they tolerate all mistakes they will make doing it?
Most large mistakes in organizational design come from putting the individual ambitions of the people at the top of the organization ahead of the communication paths for the people at the bottom of the organization.
Generally the reason they fail in the job is, you made some mistake in the hiring process in that you didn't match... them to the needs of your company accurately enough. That's the #1 reason this fails. And that's generally a good place to start: Here's where we are and here's what I didn't recognize about us and about you when I made the decision, and now it is what it is.
If you manage a team of 10 people, its quite possible to do so with very few mistakes or bad behaviors. If you manage an organization of 1,000 people it is quite impossible. At a certain size, your company will do things that are so bad that you never imagined that youd be associated with that kind of incompetence.
I described the CEO job as knowing what to do and getting the company to do what you want. Designing a proper company culture will help you get your company to do what you want in certain important areas for a very long time.
As a company gets big, the information that informs decision-making gets massive. Depending upon the prism through which you view the business, your perspective will vary. If two people are in charge, this variance will cause conflict and delay.
I had a terrible time hiring rich people. It sounds funny, but the problem is when things go wrong they can ask, 'Why am I doing this?' You don't ever want anybody asking that question. You want them to say, 'I know why I'm doing it, I need the money, let's go' or whatever it is that draws them.
When you look at a company that's already succeeded or is at the very top of its game, it isn't necessarily when it's executing well. It tends to be peacetime - you've defeated the competition, you have the highest margins, the highest multiple.
The laws of business physics have been broken in terms of how many customers you can acquire and how fast. No one in history has ever acquired 450 million customers in the same amount of time that WhatsApp did.
John D. Rockefeller said that he found friendships based on business to be far more long lasting and profitable than the reverse. I think there's something to that. A company can end up being very Confucian, where the good of the individual is subjugated to the good of the whole.
When screening engineers from other companies, its smart to value engineers from great companies more than those from mediocre companies.
I try to help people with management stuff a lot.
People say the most important thing is building a world-class team.
A good engineering interview will include some set of difficult problems to solve. It might even require that the candidate write a short program. In addition, it will test the candidate's knowledge of the tools she uses in great depth.