We scan new podcasts and send you the top 5 insights daily.
Unlike application businesses, infrastructure companies' success is measured by their ecosystem's success. They receive all the blame when things fail but little direct glory when they work. This requires a focus on enabling customer outcomes above all else.
Friction between teams often arises from deeply misaligned values, not just personality clashes. A "move fast" team measured by DAUs will inevitably conflict with a "reliability" team measured by uptime SLAs. True alignment requires shared goals, not just shared projects.
Fast-growing companies operate with internal chaos ("backstage") as they constantly rebuild systems. The key is to shield customers from this dysfunction, presenting a polished, reliable product experience ("onstage") no matter how turbulent things are internally.
Exceptional people in flawed systems will produce subpar results. Before focusing on individual performance, leaders must ensure the underlying systems are reliable and resilient. As shown by the Southwest Airlines software meltdown, blaming employees for systemic failures masks the root cause and prevents meaningful improvement.
Technically-minded founders often believe superior technology is the ultimate measure of success. The critical metamorphosis is realizing the market only rewards a great business model, measured by revenue and margins, not technical elegance. Appreciating go-to-market is essential.
In a truly product-led company, the product organization must accept ultimate accountability for business-wide challenges. Issues in sales, marketing, or customer success are not separate functional problems; they are reflections of the product's shortcomings, requiring product leaders to take ownership beyond their immediate domain.
When internal teams like operations or IT make critical errors that impact a client, the salesperson must bear the full force of the customer's frustration. Despite being blameless, the rep is the face of the company and is held responsible for managing the crisis.
Owning a project launch means being accountable for its success, requiring more than execution. It involves proactively identifying all possible failure modes (technical, infrastructural, etc.) and systematically working backward to prevent them. This active risk mitigation is the essence of strong ownership.
Product teams focus on technical metrics like scalability, but customer-facing teams see success differently: it's when a client says they "couldn't run their business" without the product. The goal is to merge these two definitions by translating technical achievements into tangible customer outcomes.
A project's success equals its technical quality multiplied by team acceptance. Technologists often fail by engineering perfect solutions that nobody buys into or owns. An 80%-correct solution fiercely defended by the team will always outperform a "perfect" one that is ignored.
Menlo's culture operates on the principle that when mistakes happen, the system is at fault, not the individual. This approach removes fear and blame, encouraging the team to analyze and improve the processes that allowed the error to occur, fostering a culture of continuous improvement.