Counterintuitively, implementing formal processes like documented decision-making (e.g., a RAPID framework) early on increases a startup's velocity. It creates a clear, universally understood system for making decisions, preventing delays caused by ambiguity or passive-aggressive managers.
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To combat diffused responsibility, starting a committee at Coinbase requires explicit CEO or COO approval. This forces the assignment of a single "Directly Responsible Individual" (DRI), ensuring clear ownership, accountability, and faster decision-making.
Gumroad's CEO credits their rapid development to his role as a solo decision-maker. This structure eliminates the lengthy processes of gaining internal buy-in and creating extensive documentation (PRDs, specs) common in larger organizations, which are often more about alignment than execution.
Instead of over-analyzing and philosophizing about process improvements, simply force the team to increase its cadence and ship faster. This discomfort forces quicker, more natural problem-solving, causing many underlying inefficiencies to self-correct without needing a formal change initiative.
To avoid becoming a bottleneck, create a decision framework with tiered spending authority (e.g., $50 for any employee, $500 for managers). This pushes problem-solving down to the people with the most context, freeing up the CEO and speeding up operations.
Contrary to the popular bottoms-up startup ethos, a top-down approach is crucial for speed in a large organization. It prevents fragmentation that arises from hundreds of teams pursuing separate initiatives, aligning everyone towards unified missions for faster, more coherent progress.
Instead of arguing for more time, product leaders should get stakeholder buy-in on a standardized decision-making process. The depth and rigor of each step can then be adjusted based on available time, from a two-day workshop to an eight-month study, without skipping agreed-upon stages.
