When founders have lingering doubts about an employee's fit or performance, the doubt itself is the answer. The only remaining question is how quickly to act. Hesitation is confirmation of the problem.
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Challenge the 'hire slow' mantra. Hiring is an intuitive guess, so act quickly. Once a person is in the organization, their performance is a known fact, not a guess. This clarity allows for faster decisions—both in removing underperformers and, crucially, in accelerating the promotion of superstars ahead of standard review cycles.
The most common failure mode for a founder-CEO isn't a lack of competence, but a crisis of confidence. This leads to hesitation on critical decisions, especially firing an underperforming executive. The excuses for delaying are merely symptoms of this confidence gap.
Parker Conrad states that he has never had a situation where he felt a new senior hire was a mistake a month in, and was later proven wrong. The initial gut feeling is always correct. The real mistake is waiting too long to act on that intuition, a trap even he falls into.
To clarify difficult talent decisions, ask yourself: "Would I enthusiastically rehire this person for this same role today?" This binary question, used at Stripe, bypasses emotional ambiguity and provides a clear signal. A "no" doesn't mean immediate termination, but it mandates that some corrective action must be taken.
To scale hiring efficiently, eliminate ambiguity. Each interviewer must make a definitive 'yes' or 'no' decision. If an interviewer is 'not sure' after their session, they are the problem, not the candidate. This prevents endless interview loops and forces clear, decisive judgment.
High-performing CEOs don't hesitate on talent decisions. One mentor's advice was to act immediately the first time you consider firing someone, as indecision only prolongs the inevitable and harms value creation. This counteracts the common tendency for CEOs to be overly loyal or fear disruption.
The number one reason founders fail is not a lack of competence but a crisis of confidence that leads to hesitation. They see what needs to be done but delay, bogged down by excuses. In a fast-moving environment, a smart decision made too late is no longer a smart decision.
Don't be paralyzed by the fear of making a bad hire. View hiring as an educated guess. The real knowledge comes after they've started working. Firing isn't a failure, but the confirmation of a mismatched hypothesis. This reframes hiring from a high-stakes decision to an iterative process of finding the right fit.
True A-players are 'undeniable' drivers whose impact is immediately obvious. If you find yourself constantly wondering or second-guessing if someone is the right fit, they are a B-player. Trust that indecision as a signal to cut them fast, as B-players create drag on the entire team.
The cost of a bad hire is significantly greater than the benefit of a good one. A bad hire makes your job 20-30% harder, while a great one makes it 10-20% easier. Therefore, any candidate who doesn't receive a "strong yes" from the interview panel should be rejected to avoid the high cost of a hiring mistake.
