20VC: Discord's Jason Citron on Why Everything We are Taught About Hiring & Management is BS | Do Richer Founders & Gamer Founders Make Better Founders? | Never Before Told Moments Behind Scaling to 200M Users
Nov 25, 2024
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Jason Citron, Co-founder and CEO of Discord, shares eye-opening insights from scaling the platform to $14.5 billion. He challenges conventional hiring practices, claiming experienced executives could hinder growth. The discussion reveals the surprising truth behind effective leadership styles and highlights the unique advantages gamer founders hold. Citron recounts pivotal moments from his journey, including the decision to decline a $12 billion Microsoft offer and his strategy for communicating with early users, reshaping the company's trajectory.
Jason Citron emphasizes that traditional hiring practices, such as bringing in experienced executives, can stall company growth and hinder innovation.
The podcast discusses how gaming fosters essential leadership skills like adaptability and problem-solving, which can significantly benefit entrepreneurial success.
Jason's shift from delegation to hands-on management revealed the importance of clearer communication and accountability in achieving effective product strategy.
Deep dives
Management Mistakes During Rapid Growth
The journey of expanding from 200 to 1,000 employees highlighted significant management challenges. The CEO realized that hiring numerous executives and delegating tasks led to stagnation within the company. This experience prompted a reevaluation of established management practices, revealing that terms like 'empowerment' and 'alignment' often masked deeper systemic issues. Ultimately, it became evident that effective management requires active involvement rather than distant delegation.
Gaming Experience as Foundational for CEOs
The discussion emphasized the unique skills that gaming fosters, which are valuable in leadership roles. Gaming engages players in problem-solving, cooperation, and leadership dynamics, all within a safe environment. Such experiences cultivate a growth mindset and adaptability, traits essential for navigating real-world challenges as a CEO. The ability to repeatedly face and overcome failures in games translates into effective problem-solving strategies in business.
Navigating Product-Market Fit Challenges
The initial launch of Discord reflected a swift progression toward product-market fit but was not without its hurdles. Despite having early enthusiasm from friends, gaining broader traction was initially difficult. The critical insight came from engaging directly with potential users, inviting feedback instead of merely promoting the product. This approach allowed Discord to refine its offering and gain traction within the gaming community.
Lessons Learned from Scaling and Delegation
The rapid scaling from 200 to 1,000 employees revealed the pitfalls of improper delegation and management styles. The CEO recognized that excessive reliance on delegation led to incoherent product strategies and reduced productivity. An important shift occurred where the focus moved from delegation to a more hands-on approach where the leadership directly influenced project direction. This change allowed for greater accountability and clearer communication across the organization.
The Future of Gaming and AI Integration
The conversation addressed the potential transformation of the gaming industry through AI technologies, particularly regarding content creation and user interaction. AI could democratize game development, enabling smaller teams to produce high-quality games more efficiently. Furthermore, it opens the possibility for players to engage with personalized content, enhancing their gaming experience. These advancements indicate that the gaming landscape will continue to evolve, creating opportunities for both creators and consumers.
Jason Citron is the Co-Founder and CEO of Discord, a voice, video and text platform for friends playing games. Jason has raised $1BN for the company and was able to scale to 200M users. Prior to co-founding Discord, Jason founded OpenFeint, the biggest social mobile gaming platform, which sold to GREE in 2011 for $104 million.
In Today’s Episode with Jason Citron We Discuss:
1. Leadership Lessons That are Total BS:
Hiring: Why does Jason believe hiring experienced executives is the worst thing you can do for your company? What did he learn by doing it?
Culture: Why does Jason believe that empowerment and alignment are total BS? How does Jason empower people when they are told what to do vs choose what to do?
Strategy: What does Jason believe is the most effective way to drive and implement the strategy?
2. The Untold Moments Behind Scaling to 200M Users:
Why did Jason offer to give investors their money back at one point? What was the hardest round to raise and why?
Why did Jason turn down the chance to sell to Microsoft for $12BN?
What one single change in how Jason communicated with the first 100 users changed the trajectory of the entire company?
What do most founders think they know about product market fit that they do not?
3. The Makings of a Unicorn Founder:
Does Jason believe that richer founders make better founders?
Why does Jason believe that entrepreneurs who play video games have a higher chance of being successful in the future?
What single trait does Jason believe he has that has made him such a successful founder? Does Jason ever have imposter syndrome? When?
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