New York and Durham (Houston?)

Two reminders for upcoming appearances: This Saturday I’ll be presenting a 24-hour art collaboration with Evan Roth at Seven on Seven at the New Museum. On Monday I’ll be in Durham, North Carolina to speak at Duke University. If you’re interested in the latter, leave a comment and I’ll make sure you get the details. We don’t have a ton of room but I’d like ma.tt readers to be able to attend. After that I’ll be in Houston briefly if anyone wants to do a meetup.

Cease and Desease

I just got a “CEASE AND DESEASE” order by another braindead person thinking that WordPress, or “WORLD PRESS” as the email says, has anything to do with sites that run it. (The reference to “WORLD PRESS” means he must have known about my plans for world domination.) The most interesting of these was when I was contacted by the FBI about a fugitive on the run that had a WP blog under an alias.

Advice and Fallacies

One of the toughest things in business is when you get well-meaning advice from advisors, investors, or friends of the company who are valuable but might hold some ideas or ways of approaching problems that just aren’t applicable to your particular company or situation. They might be right most of the time, and it might have worked for them in the past to build a huge success, but it doesn’t mean it’s right for you, right now.

This is especially a struggle for Automattic because so much of what we do is deliberately different from companies that have come before us. The below is a sensitive-info-scrubbed version of a comment I made on an internal P2 in response to someone who had met with a close friend of the company who had said we should “hire more business people, and more people like so-and-so, who have a background in and passion for data analysis and structure. He also shared his ideas about what the additional business hires could be responsible for, such as P&L responsibilities for specific products.” The person he had talked to was asking why we weren’t following that advice.

The first part was easy, because so-and-so was actually leading hiring for a position around data and the early results were going well. The rest I ended up writing more about, which follows. It was only meant for internal consumption, so read it as such, but I got enough requests to share the comment publicly that I wanted to clean it up and release it for y’all.

On the “more biz people + P&L” side, it’s an area we disagree.

We’ve had more “business people” in the past, and found it just didn’t move the needle in the same way that investing on the support, engineering, and design side did. They also tended to generate more meetings and work for other people than was commensurate for their contributions.

We’ve also experimented with giving leads P&L responsibility for products and groups, but ultimately it was awkward because we don’t really want leads or teams focused on the loss or costs of what they’re doing — we just want to grow our core metrics and revenue in a healthy and accelerating way, and let Ops and myself worry about overall profit or loss for the company, costs of people and services, capital requirements, etc. We’re still at a stage where our primary goals are investing in growth and product excellence, I wouldn’t want a P&L concern to be a distraction from that, and that also takes us into the territory of different teams having “headcounts” of people they can hire for the year, or budgets set ahead of time and that they’ll lose if they don’t use, zero-sum accounting between teams and more balkanization you often see in larger organizations. When anyone thinks about P&L at Automattic, I want it to be holistically and with a long-term view, not for a single team or product.

It gets backs to the fallacy we talked about and agreed to avoid at the [WordPress.com leads] meetup, which is the business equivalent of Great Man Theory: the idea that a deficiency in the business or product will be solved by hiring someone senior to be in charge of that thing. Example: Automattic is bad at marketing, we should hire a CMO. (99% of the time when this is suggested it means an external person, because if anyone internal was good the problem wouldn’t exist.) It’s an easy thing for anyone to fall into, you can see it in [a recent internal thread].

This must work sometimes, because it seems to be a near-universal affliction of VCs on startup boards. It also is a little bit of a bikeshed, because while it can be difficult to understand or feel like you can have an influence on something fundamental to the product, like say the signup flow, most VCs have large professional networks and can have long and vigorous discussions talking about potential people who are executives in a given area and their first or second degree connections to them. Of course, like many of us, VCs are consumers of tech media which tends to ascribe all the success of an organization to a single person (like Sheryl Sandberg for Facebook not falling apart, or Adam Bain for revenue at Twitter). However often the problem has root causes more fundamental than a single person could shift.

I subscribe to a more environment-driven approach, that if you break down a problem into its component parts you can address them individually, often with relatively simple next steps, and build things from the ground up, rather than the top down. If you can’t do that, then it’s best to be candid that the area is not a priority and make sure that’s in line with what you’re focusing on instead. In this process leaders will emerge or if the effort matures to a point where one joins as a new hire he or she will have the resources, groundwork, and environment to succeed.

So in summary: always go back to first principles of decisions. Hires are seldom panaceas. Someone being successful in a role at another company doesn’t mean they actually did the work, or were the cause of the success. If there’s an area you’re weak, try to figure out the root causes of why you’re weak, and where possible try to improve the environment that creates the problem before pinning the turnaround on a “Jesus hire.” When you improve the environment it makes it much more likely a new external hire will do well. The majority of success or failure is a result of the environment, at least as much as the individuals involved.

Thoughts on Tech Employment

The Washington Post writes The U.S. economy is booming. So why are tech companies laying off workers? This article has some good data, but I think misses the point with sub-heads like “Shine has come off the tech industry.” Really? How is that reflected in their stock prices?

I think a few things are happening.

First, tech companies are typically best at adopting new technology, which leads to productivity gains.

AI may be an obvious example of this, though for all its hype it hasn’t had a huge impact on most companies yet. I agree with Sam Altman when he says there may someday be a billion-dollar company run by one person who is able to highly leverage future AI agents to automate most traditional roles at a company. That said, I think there are advantages to teams including allowing people to go on vacation or take time off, and provide business continuity and succession, so literally one-person is probably an exaggeration. We don’t need AI to see very small teams being valued highly: Instagram had only 13 employees when it sold for a billion dollars to Facebook, in 2012!

Some of this productivity gains just come from adoption of existing tools like Google Workspace or Office 365, issue trackers and version control with tools like Gitlab, Github, or Jira. At Automattic we don’t use email to work or communicate internally, it’s all Slack and P2. We also leverage our distributed nature to effectively have teams around the world coordinating several shifts of product work per day, and 24/7 coverage for things like systems and customer support without the need for “graveyard shifts.”

The way tech companies operate, the pace and culture, would be unrecognizable to people at many more traditional companies.

At tech companies some roles are highly leveraged, like systems, engineering, and design, and everything else in the company really exists to support these. These leveraged roles can create enormous amounts of value, and that’s why it’s not unusual to hear of machine learning engineers working on ads at Google with salaries in the seven figures. (There’s been a weird accounting thing where companies put a lot of their compensation into equity, but I think that’s going away as investors are learning to better account for dilution and employees appreciate the fungibility of cash.)

Creators are also highly leveraged, which is why Joe Rogan can sign a new $250M deal with Spotify (which smartly puts him back on Youtube) after laying off 1,500 people in December. Some people like Hagen Terschüren try to tie this together and say you should avoid Spotify for it, but there’s nothing wrong with a business becoming more efficient to serve its customers, it’s the whole point of capitalism. Capitalism is, as Nicholas Stern says (via Marc), the best way to take care of people we don’t know. There’s no honor in keeping people employed inefficiently, it’s better for them to find someplace in the market where their talents will be better leveraged for society and themselves.

There was a bubble in hiring because tech had so much money it tried to throw people at problems. But the unlock in technology can come from a single person, a single insight. It’s the mythical man-month. Tech-first companies are going to become leaner and more leveraged. Fewer people are going to create more value for society, in ways that will follow power laws and I think we should investigate things like Universal Basic Income to provide for all living beings. Technological progress creates abundance, where we have more than what we need.

At Automattic last year we did not do layoffs, but allowed performance management and natural attrition (voluntary regrettable was 2.9%, non-regrettable 6.8% for us in 2023) to allow our size to shrink down more naturally, on average two people left for every person we hired last year, from a peak of about 2,064 to 1,936 today.

3.6 and State of the Word

3.6 has been released and has a groovy video to go with it:

It’s been a busy week, WordCamp San Francisco 2013 went off without a hitch. Here’s the State of the Word presentation, which covered quite a bit of material and talks about the plans for WordPress 3.7 and 3.8:

And here’s the question and answer session:

There was a pretty good summary of the presentation in infographic form. A bit more about this next week, and some more announcements in store as well.

Podsession Responses

There have been two interesting responses to the podcast I did with Om and Niall the other week. The first was Scott Johnson who responded in a podcast. As I expected, most people are taken aback by my statement to “let the engineers pick” what language and enviroment you use for your product. I think there is one important assumption that wasn’t articulated in that statement: you have brilliant engineers and you trust them. As a psuedo-engineer, I find it insulting when people suggest engineers are unable to factor anything other than their selfish language preferences, things like loaded costs, hardware costs, platforms, long-term viability, hiring, etc are simple variables that can be considered by any intelligent person. If anybody in Automattic came to me that was writing a tool in Python, C, Perl (it’s happened) or whatever, I might ask a question or two but at the end of the day I know they’re able to weigh the costs and benefits just like I would. If you’ve hired an engineer that isn’t able to make these decisions as well or better than you, then you’ve already lost the battle and over time more and more of your time will be spent plugging holes in a descent to mediocrity.

The second response was on the Pronet blog which in an amazing feat of blogging acrobatics managed to mention and link every single person tangentially associated with the podcast except me, even though I’m quoted in every heading. The Google Pages example is brought up again to illustrate that all the hardware in the world sometimes solve a scalability problem, but I still think that’s faulty because none of us had any idea why Pages was slow when it launched, it could have been a faulty router for all we know. Pronet responds to “Go with what your happiest working with” with a set of points to consider for a language, but again with the right people none of that matters. Happiness, in all things not just the language, should be the number goal and metric for everything in an early-stage startup. Happy engineers work smarter, longer, more efficient, attract better candidates, and have a better quality of life. (A corollary is that if you’re already set on a language path, don’t hire anyone who isn’t thrilled with working in that language.) For an example of how this can work in a really extreme case, I suggest everyone read the story of Viaweb and Lisp. (Another talk.)In my mind Lisp is a ridiculous language to build a web application in, but to them and their engineers it was heaven and they had better products earlier than their competition as a result of their unusual choice.

(As an aside, I wonder how many people said the same thing about Ruby for web apps before David Heinemeier Hansson, Rails, and 37signals, or even about PHP before Yahoo and Wikipedia? An example (and a little bit of promotion) is better than a thousand whitepapers.)

About.me and Wakemate

Today has been a very exciting day. First off, About.me has been acquired by Aol, as good friend Tony Conrad writes about on his blog. A great deal on both sides, I think Aol got a steal and a great team here. Second, one of Audrey’s earliest investments Wakemate has finally shipped their first version, which I’ve been using the past two nights and has been great. (I’m averaging 60 so far.) Reserve your Wakemate here.

The Internet measures everything. And I am a slave to those measurements. After so many years of pushing much of my life through this screen, I’ve started measuring my experiences and my sense of self-worth using the same metrics as the Internet uses to measure success. I check my stats relentlessly. The sad truth is that I spend more time measuring than I spend doing.

Fantastic read over at Tweetage Wasteland : I Don’t Care if You Read This Article. Or put another way “Not everything that can be counted counts, and not everything that counts can be counted.” Hat tip: Mark Riley.