To maintain the agility of acquired startups, Amplitude's CEO implemented a top-down ban on "decisions by committee." This empowers individual PMs to make decisions quickly without getting bogged down in universal alignment, protecting the fast-moving culture that made the startups valuable.
When a large company acquires a startup, the natural tendency is to impose its standardized processes. Successful integration requires a balance: knowing which systems to standardize for leverage while allowing the acquired team to maintain its freewheeling, startup-style execution.
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.
Successful large-scale acquirers remain nimble, flexing their own processes to suit the acquired company rather than force-fitting it into a rigid corporate structure. This preserves the culture and talent that made the company valuable, preventing value destruction and keeping the new team engaged.
Amplitude's CEO acquired multiple founder-led companies as a deliberate strategy to counteract the inherent slowness of a large SaaS business. This injects a startup's pace and an AI-native mindset directly into the organization to accelerate its AI transformation.
Large corporations can avoid stagnation by intentionally preserving the "scrappy" entrepreneurial spirit of their early days. This means empowering local teams and market leaders to operate with an owner's mindset, which fosters accountability and keeps the entire organization agile and innovative.
As companies grow from 30 to 200 people, they naturally become slower. A CEO's critical role is to rebuild the company's operating model, deliberately balancing bottom-up culture with top-down strategic planning to regain speed and ensure everyone is aligned.
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.
To match the pace of AI startups, large companies require explicit, top-down cultural mandates. At Amplitude, the CEO banned 'decisions by committee' to empower individuals and accelerate shipping. This leadership action is crucial because ICs cannot unilaterally adopt such a culture.
A key to M&A success is creating a founder-friendly environment. Avoid killing entrepreneurial spirit by forcing founders into a rigid matrix organization. Instead, maintain the structures that made them successful and accelerate them by providing resources from the parent company.