Jason Fried, Co-founder and CEO of 37signals, shares his wealth of experience from 25 years in the business world. He discusses the importance of hiring strong writers and how meaningful reference checks can unveil true character. The conversation shifts to fostering creativity in remote teams and adapting project management methodologies, like the 'Shape Up' approach for efficient planning. Fried emphasizes the evolution of writing in business, arguing it’s essential for effective remote communication, and reflects on the unique challenges posed by the transition to remote work.
Jason Fried emphasizes the importance of embracing risk within organizations to foster innovation and encourage creative exploration.
The implementation of a six-week development cycle at 37signals promotes agility and clarity, helping teams prioritize essential project features.
Strong writing skills are prioritized in hiring at 37signals, as clear written communication enhances productivity and minimizes misunderstandings among remote teams.
Deep dives
The Scarcity of Risk Tolerance
In many organizations, risk tolerance is often diminished as employees prioritize job security and stability over taking bold risks. This self-preservation mentality leads to a culture where innovation is stifled, as employees shy away from sharp, risky initiatives. The CEO emphasizes the necessity of embracing risk within the company, asserting that it is his responsibility to infuse new ideas and encourage experimentation. By framing risky ventures as 'bets', he cultivates an environment where exploration and creativity can thrive, ultimately pushing the organization towards innovation.
Six-Week Development Cycles
The company employs a unique six-week development cycle to enhance focus and efficiency in product features. Each feature is constrained to this time frame, serving as a limit on how long a team can spend on a project rather than estimating how long it will take. This constraint encourages clarity about priorities, compelling teams to distill projects to their core essentials instead of getting bogged down in excessive details. By adhering to these cycles, the company fosters agility, allowing for timely feedback, adjustments, and the ability to pivot as needed.
The Value of Written Communication
Writing plays a crucial role in the company's culture and operations, serving as the primary mode of communication. Employees are encouraged to articulate their thoughts in writing rather than relying on meetings, as this promotes clarity and accountability. Written communication fosters asynchronous interactions, enabling a flexible work environment since team members are spread across many time zones. The emphasis on writing helps ensure that ideas are clear and well-structured, which ultimately enhances productivity and collaboration throughout the organization.
Hiring for Writing Skills
When hiring, the company prioritizes candidates who demonstrate strong writing abilities, viewing it as an essential skill across all roles. Applicants are required to submit a cover letter that articulates their motivations and perspectives, differentiating themselves from a generic CV. This approach allows the company to gauge a candidate's thinking and communication skills early in the recruitment process. Ultimately, clear writing not only impacts team dynamics but also prevents misunderstandings and confusion among employees.
Fully Embracing Remote Work
Following a long history of remote work, the company has fully transitioned to a remote model, recognizing the flexibility it offers. The CEO maintains that remote work can eliminate many traditional office-based challenges while promoting autonomy and innovation among employees. He advocates against hybrid work models, as they can create inconsistencies and limit the desired freedom that remote work provides. The emphasis lies on cultivating meaningful connections among team members, ensuring that everyone feels valued within smaller teams regardless of their physical location.
Jason Fried is the Co-founder and CEO of 37signals, the software development firm behind Basecamp (a project management app), and HEY (an inbox and calendar app).
In this episode, Jason dives into what 25 years of business has taught him. He shares his advice for hiring staff, getting meaningful insight from reference checks, and why you should always hire a candidate who is the better writer.