Here's What It Takes to Make a Great Company

85 snips

Feb 24, 2025

Guest

David Rosenthal

Guest

Ben Gilbert

Ben Gilbert and David Rosenthal, co-hosts of the Acquired podcast, dive deep into what makes companies like TSMC and Hermès truly great. They debunk common myths of business success, highlighting the random nature of extreme outliers and the crucial role of founder control in preserving company identity. The duo explores the importance of narratives in shaping corporate success and the delicate balance between management and visionary leadership. They also contrast Hermes' focus on craftsmanship with the fast-paced nature of tech competition.

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ADVICE

Decoupling Performance Reviews and Layoffs

Separate performance reviews from layoff decisions.
Performance reviews should focus on coaching and improvement, not just elimination.

INSIGHT

Layoffs and Cyclicality

TSMC's founder, Morris Chang, believed layoffs contribute to industry cyclicality.
He advocated for avoiding layoffs if a turnaround is expected within 12-18 months.

ANECDOTE

TI's Missed Opportunity

Morris Chang had a scarring experience at Texas Instruments where layoffs led to the departure of a key team.
That team's departure caused TI to miss out on key technological advancements.

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