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