Brian Chesky’s new playbook

Nov 12, 2023 Episode Page ↗
Overview

Brian Chesky, CEO & co-founder of Airbnb, discusses his radical approach to product management, shifting from traditional growth to product-led strategy. He details Airbnb's functional model, biannual launches, and his personal habits for leadership, balance, and continuous learning.

At a Glance
56 Insights
1h 13m Duration
17 Topics
7 Concepts

Deep Dive Analysis

Airbnb's Shift in Product Management Structure

The Genesis of Bureaucracy in Fast-Growing Companies

Rethinking Performance Marketing and Brand Investment

Implementing a Rolling Two-Year Product Roadmap

The CEO's Role as Chief Product Officer

Operational Changes Triggered by the Pandemic

Restructuring to a Functional Model and CEO Reviews

Building In-House Creative and Marketing Capabilities

Advice for Founders on Leadership and Company Culture

Airbnb's Winter Release: Guest Favorites and Host Tools

The Evolution of Design Aesthetics: Beyond Flat Design

Empowering Hosts with Great Tools

The Power of Setting Ambitious '10X' Goals

Strategies for Avoiding Burnout and Maintaining Balance

Brian Chesky's Approach to Continuous Growth and Learning

Paying it Forward and the Value of Help

Brian Chesky's Artistic Background and Airbnb's Origin

Being in the details

This concept differentiates a leader's deep involvement in the specifics of the work from micromanagement. It means knowing the intricacies to assess performance and provide development, rather than dictating every action, similar to how a board oversees a CEO.

Company bureaucracy

A phenomenon where fast-growing companies become slow-moving due to accumulated technical debt, increasing dependencies between teams, internal politics from advocating for individual interests, subdivision into separate divisions, and a resulting lack of accountability and complacency.

Product-led growth

Airbnb's current strategy of shifting away from heavy performance marketing spend to focus on building an exceptional product and educating users about its unique benefits. The belief is that a truly great product, effectively communicated, will drive organic growth.

Functional model (company structure)

An organizational structure where a company is organized by specialized functions (e.g., design, engineering, marketing) rather than by product divisions. This aims to ensure cohesion, shared direction, and prevent teams from becoming siloed and incompatible.

Add a zero (10X thinking)

An exercise to imagine a goal 10 times bigger or better than initially proposed. This forces teams to think differently about problems, break them down into first principles, and discover innovative solutions that wouldn't be possible with incremental thinking.

Fake work

Activities that consume time and effort but do not genuinely advance the company's strategic goals or move projects forward. This often results from a reactive approach to managing time, where an agenda is set by incoming requests rather than proactive strategy.

Beginner's mindset

An approach to learning and growth characterized by curiosity, seeing everything with fresh eyes, and avoiding preconceived judgments. It fosters continuous evolution and a constant hunger to improve, rather than feeling like one has 'made it' and is done learning.

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What is Airbnb's current approach to product management?

Airbnb no longer uses a traditional product management function. Instead, they've combined inbound product development with outbound product marketing responsibilities, off-boarded program management tasks, and made the product group smaller and more senior, focusing on managing by influence rather than control.

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Why do fast-growing companies often become slow and bureaucratic?

This happens due to accumulating technical debt, increasing dependencies between teams, internal politics arising from advocating for individual divisions, and a lack of accountability, leading to complacency and slow movement.

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How does Airbnb approach marketing and growth now?

Airbnb has shifted away from heavy performance marketing, viewing it as a 'laser' for specific needs, and instead focuses on brand marketing and educating people about new products, believing that building an exceptional product and effectively communicating its value will drive growth.

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What is the CEO's role in product development at a tech company?

The CEO of a product or tech company should essentially act as the chief product officer, deeply involved in the product's details, setting the vision, pace, and ensuring cohesive execution across all functions.

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How did the pandemic impact Airbnb's operational strategy?

The pandemic, which caused an 80% business loss, forced Airbnb to restructure, cutting projects, removing management layers, adopting a functional model, reducing employee count, and implementing a CEO-led review schedule to drive product development.

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How can a leader ensure teams work cohesively and avoid internal politics?

By establishing a single, shared consciousness across top leadership, implementing a rigorous review schedule where the CEO is involved in the work's details, and ensuring everyone rows in the same direction, conflicts and politics can be minimized.

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What is Airbnb's new design aesthetic?

Airbnb is moving away from flat design towards a more three-dimensional, colorful aesthetic with texture and dimensionality, believing it's more intuitive, playful, and better replicates the natural environment on screens, especially with the aid of AI.

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How can leaders set ambitious goals without demotivating their teams?

Leaders should use ambitious goals (like 'add a zero') as an exercise to encourage different thinking and problem-solving, set a decisive pace, and foster a growth mindset where pushing for better results is seen as a belief in the team's greater potential.

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What are Brian Chesky's strategies for avoiding burnout and maintaining work-life balance?

He ensures regular breaks (e.g., every other weekend off), prioritizes daily exercise, maintains a healthy diet, gets sufficient sleep, and actively nurtures healthy relationships with friends and family, recognizing their importance for overall happiness.

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How does Brian Chesky continue to grow and learn as a leader?

He maintains a 'beginner's mindset,' constantly curious and learning from various sources, shamelessly reaching out for help, and embracing the idea of 'constant becoming' rather than feeling like he has 'made it,' which drives continuous evolution and wisdom.

1. Lead with Clarity

Founders should avoid apologizing for their vision or finding a midpoint between their desires and their team’s, as this leads to misery. Instead, provide clear direction so everyone can row in the same direction quickly.

2. Leaders Are In The Details

Leaders must be deeply involved in the details of the work, distinguishing this from micromanagement, to understand if people are doing a good job and to effectively drive the product.

3. CEO as CPO

In a product or tech-led company, the CEO should assume the role of Chief Product Officer, deeply involved in product strategy and development.

4. Row in Same Direction

Focus on aligning everyone in the company to row in the same direction, as collective effort towards a unified goal is fundamental to organizational success.

5. Adopt Functional Model

Revert to a purely functional organizational model, like a startup, with unified design, engineering, product marketing, and other core functions, rather than divisional leaders.

6. Deep Involvement for Efficiency

While deep involvement in details may require intense effort for 1-2 years, it ultimately leads to greater organizational alignment, fewer conflicts, and paradoxically, more free time for the leader in the long run.

7. Prioritize Healthy Relationships

Actively cultivate and maintain healthy relationships with friends and family, as this is identified as the single most important factor governing long-term happiness.

8. Maintain Beginner’s Mindset

Cultivate a ‘beginner’s mindset’ by approaching every situation with curiosity and fresh eyes, regardless of experience, to continuously learn and avoid complacency.

9. Proactive Time Management

Avoid letting incoming emails or meeting requests dictate your agenda; instead, proactively manage your time by aligning it with your strategic priorities and long-term goals.

10. Eliminate “Fake Work”

Consciously say no to ‘fake work’—tasks that feel productive but don’t advance core goals—and instead say yes only to work and people that are truly meaningful and move the ball forward.

11. Integrate Product & Marketing

Re-architect product management to combine inbound product development with outbound product marketing responsibilities, offload program management to dedicated program managers, and make the product group smaller and more senior to ensure market expertise and product understanding.

12. Market Expertise for Builders

Those building a product must also be experts in its market and know how to talk about the product, as a great product is useless if no one knows about it or understands its benefits.

13. Manage by Influence

Adopt a purely functional organizational model where product roles manage by influence rather than direct control over design or engineering, fostering collaboration without hierarchical bottlenecks.

14. Avoid Divisional Silos

Resist subdividing the company into separate divisions, as this leads to technical debt, dependencies, internal politics, bureaucracy, lack of accountability, and ultimately complacency.

15. Integrate Engineering & Marketing

A key indicator of organizational health is the closeness between engineering and marketing, as engineers should consider how to talk about products, and marketing understands customer needs.

16. Marketing as Education

View marketing as an investment in educating people about unique product benefits and building brand, rather than solely relying on performance marketing which doesn’t create accumulating advantages.

17. Rolling Two-Year Roadmap

Adopt a rolling two-year product strategy roadmap, updated every six months with releases, to ensure the entire company works together and rows in the same direction.

18. Story Dictates Product

Begin product development by defining the product’s story, as it helps create a cohesive product and dictates how it will be communicated to people.

19. Re-establish Design Roots

Prioritize re-establishing design roots and long-term investment over solely obsessing about short-term metrics, which can lead to a loss of cohesive understanding and difficulty getting work done.

20. Document & Prioritize Projects

Require all ongoing projects to be documented, then drastically cut the number of initiatives to focus on a vital few, ensuring teams do fewer things but do them together.

21. Minimize Management Layers

Reduce layers of management to create a flatter organization, allowing leaders to be closer to the teams and enabling faster communication and decision-making.

22. Lean, Senior Team

Operate with fewer, more senior employees, as adding more people to a project can often slow it down, focusing on quality over quantity in staffing.

23. Executives as Domain Experts

Ensure every executive is a deep expert in their functional domain, with their primary responsibility being the work itself, as it’s impossible to effectively manage people without managing their work.

24. Centralize Decision-Making

Pull decision-making upwards and centralize it among top leaders to create a single, shared consciousness across the company, rather than pushing it down.

25. Roadmap Over Metrics

Make metrics subordinate to the calendar and a clear roadmap, ensuring that strategic planning and timely execution guide the work, rather than being solely driven by short-term metric optimization.

26. Biannual Product Launches

Commit to two major product launches per year (e.g., May and November/October), and enforce that nothing can be shipped unless it is explicitly on the company’s roadmap.

27. Rigorous CEO Reviews

Implement a regular CEO review schedule for all projects, with cadences ranging from weekly to quarterly, to track progress, identify bottlenecks, and ensure alignment.

28. Reviews Enable Flexible Work

Leverage rigorous review cycles to effectively track work quality and progress, which in turn enables flexible work arrangements without needing to mandate office presence.

29. In-House Creative Agency

Develop an in-house creative agency to handle both advertising and product creative, ensuring a cohesive aesthetic and message across all customer touchpoints.

30. Unified Writing Function

Consolidate UX writing and marketing writing into a single function, ensuring that all communications—emails, app text, and ads—speak with one consistent voice.

31. Interconnected Product Managers

Foster an environment where all product managers are interconnected and aware of each other’s work, avoiding independent silos unless teams truly have no dependencies.

32. No Pure People Managers

Avoid roles where the sole responsibility is managing people; instead, ensure all managers are also domain experts deeply involved in the work, as effective people management requires understanding the work itself.

33. Focus Multiple Teams on One Goal

Instead of one team trying to accomplish five different things, assign multiple teams to focus on a single, shared objective to improve efficiency and impact.

34. Package Releases as Stories

While shipping frequently (e.g., hourly or daily) is possible, package these smaller releases into larger, cohesive product stories for launches to effectively communicate value to users.

35. Design & Eng Report to CEO

For product-led companies, ensure engineering and design report directly to the founder/CEO (who acts as CPO), and avoid placing design under product management unless the product leader is also a designer.

36. Expand PM Role to Storytelling

Expand the responsibilities of product management to include distribution, deep customer understanding, and the ability to teach others how to tell the product’s story effectively.

37. PMs: Art & Science Blend

Seek product managers who possess a blend of ‘art and science,’ capable of working effectively with both technical and non-technical functions, rather than being purely technical.

38. Flat Org, Dotted Line Reports

Maintain a flat organizational structure with few layers, and as a CEO, treat your direct reports’ direct reports as implicit dotted lines to stay connected to the work and people.

39. Releases as Story Chapters

Frame each product release as a chapter in a larger, ongoing 5-10 year company story, providing a cohesive narrative and long-term vision for development.

40. Invest in Host Tools

To deliver an excellent guest experience, prioritize building great tools for hosts, as empowering hosts with superior resources directly enables them to provide better experiences for guests.

41. Careful Design Inspires Care

Invest significant care in the design of your product, as users (e.g., hosts) will notice and be inspired to put more care into their own contributions and interactions.

42. Hypothesis-Driven A/B Testing

Conduct A/B tests with clear hypotheses to avoid getting stuck with suboptimal solutions, and always consider how changes impact the entire cohesive product system, not just isolated elements.

43. Elevate Design’s Role

Avoid treating design as a mere service organization; instead, integrate it as a core part of the product development process to prevent designers from feeling frustrated and compromising their work.

44. Balance Data, Research, Intuition

Teams should balance data analysis with qualitative research and intuition, remembering that ‘you can’t delegate understanding’ and deep insight comes from a combination of these approaches.

45. 10X Thinking for Innovation

Challenge teams with ‘add a zero’ or 10X thinking to encourage them to approach problems differently and unlock innovative solutions that wouldn’t be possible with incremental improvements.

46. Set Decisive Team Pace

Founders and leaders must set the pace for their team, understanding that speed is often driven by decisiveness and a bias for action, rather than just the number of hours worked.

47. Bias for Action

Foster a ‘bias for action’ by making decisions and assigning immediate next steps in meetings, rather than deferring discussions, to accelerate progress.

48. Foster Growth Mindset

Leaders should see and nurture potential in people that they may not see in themselves, creating a growth mindset organization where pushing for better performance is seen as a sign of belief.

49. Alternate Work/Rest Weekends

To avoid burnout, adopt a schedule of alternating weekends: one weekend for intense work, and the next weekend completely dedicated to rest and no work.

50. Prioritize Health Basics

Consistently prioritize physical health by never missing a workout (e.g., daily cardio, weights 3-4 times a week), eating very healthy (e.g., bodybuilding diet), and getting sufficient sleep.

51. Nurture Friendships & Shared Experiences

Make a conscious practice of staying in close touch with a core group of friends, including old ones, and actively create new shared experiences (e.g., trips) to keep relationships fresh and meaningful.

52. Prioritize with Finite Horizon

Re-evaluate and prioritize your time by imagining a shorter, finite life horizon, which can fundamentally change what you say yes and no to, focusing on truly meaningful work and relationships.

53. Shamelessly Ask for Help

Don’t be afraid to shamelessly ask others for help, as it’s often an honor for them to feel useful, and you don’t need to only seek advice from those far ahead of you.

54. Seek Peer Advice

When seeking help, don’t limit yourself to mentors many years ahead; advice from peers just a year or two ahead can often be more relevant and useful for immediate challenges.

55. Embrace Constant Becoming

Adopt an artist’s mindset of ‘constant becoming,’ always evolving, learning, and growing, rather than feeling like you’ve ‘made it,’ to ensure continuous development and wisdom.

56. Cultivate Holistic Thinking

Develop a well-rounded, holistic way of thinking about the world, drawing from diverse fields and perspectives, as this broadens understanding and problem-solving capabilities.

You can't build a product unless you know how to talk about the product. You can't be an expert in making the product unless you're also an expert in the market of it.

Brian Chesky

If you build a great product and no one knows about it, did you even build a product?

Brian Chesky

I've always said that the health of an organization, one simple heuristic is how close there's engineering and marketing.

Brian Chesky

The CEO should be basically the chief product officer of a product or tech company.

Brian Chesky

The best way to slow a project down is to add more people to it.

Brian Chesky

Way too many founders apologize for how they want to run the company. They basically find some midpoint between how they want to run a company and how the people they lead want to run the company. That's a good way to make everyone miserable.

Brian Chesky

The secret to happiness, if there is one, is healthy relationships.

Brian Chesky

An artist has to be in a constant place of becoming. And so long as they don't become something, then they're going to be okay.

Brian Chesky

The biggest honor most people get in their lives or one of the biggest honor is when other people ask them for help because we all just want to feel useful.

Brian Chesky

Airbnb's Product Development and Launch Methodology

Brian Chesky
  1. Combine inbound product development responsibilities with outbound product marketing responsibilities.
  2. Off-board program management functions that product managers previously handled to dedicated program managers.
  3. Make the product group smaller and more senior, focusing on managing by influence rather than direct control.
  4. Operate with a purely functional model (e.g., design, engineering, marketing) instead of separate product divisions (e.g., guest team, host team).
  5. Maintain a rolling two-year product strategy roadmap, which is updated every month.
  6. Conduct major product releases twice a year (every May and November/October).
  7. Work months ahead on all different marketing assets and determine the product's story early, as the story often dictates the product.
  8. Utilize an in-house creative agency for marketing communications and product creative.
  9. Consolidate UX writing with marketing writing into a single 'writing' function, ensuring one voice across all customer touchpoints.
  10. Implement a CEO review schedule for all product and marketing work, with reviews occurring on a cadence of every 1, 2, 4, 8, or 12 weeks.
  11. Use a head program manager to score all projects (green, yellow, or red) based on their on-track status for shipping.
  12. Ensure every single thing in the company, with the exception of some infrastructure projects, is on the roadmap and cannot ship otherwise.
  13. Prioritize getting everyone to 'row together in the same direction' by fostering shared consciousness and direct involvement from leadership to resolve bottlenecks.

Brian Chesky's Personal Burnout Prevention and Balance Strategy

Brian Chesky
  1. Take full weekends off every other weekend, working intensely on alternate weekends (adjusting for family commitments).
  2. Never miss a workout: typically 20 minutes of morning cardio daily, and gym 3-4 times a week for weights.
  3. Maintain a healthy diet, following a classic bodybuilding diet of five to six meals a day.
  4. Ensure a fairly good amount of sleep.
  5. Actively nurture healthy relationships with friends and family, making time for shared experiences and staying in touch, including old friends.
  6. Engage in creative hobbies like drawing and reading.
  7. Prioritize time based on a finite life perspective, saying 'no' to 'fake work' (activities that feel like work but don't move the ball forward) and 'yes' to meaningful work and people.
$80 billion
Airbnb's current valuation Global business value
220
Countries and regions Airbnb operates in Travelers and homes
80%
Airbnb's business loss during pandemic Lost in eight weeks
80%
Percentage of projects cut during pandemic From what the company was doing
Fewer than 7,000
Airbnb's current employee count Compared to Uber's 30,000
120,000
Refugees housed by Airbnb Through their efforts
Every month
Airbnb's roadmap update frequency For the rolling two-year product plan
Twice a year
Airbnb's product release frequency Every May and November/October
370 million
Number of reviews analyzed for Guest Favorites Plus millions of customer service tickets and host cancellation data
2 million
Number of homes in 'Guest Favorites' collection Top homes rated highest by guests
100 million
Number of photos trained for AI computer vision Used for the AI-powered photo tour
85 years old
Length of Harvard study on human happiness Longest study on human happiness