Micromanagers are often mistaken for great leaders, says Airbnb CEO.
Brian Chesky, CEO of Airbnb, isn't hesitant to verify the accuracy of his employees' work.
Chesky has been reviewing every Airbnb project, including new website features and television ads, for the past five years, as he told Fortune last month. While some may view his approach as micromanagement, given Airbnb's massive scale with an $80.45 billion market cap, Chesky sees it as setting standards for his company.
"Chesky stated that great leadership is not about being absent, but rather being present and involved in the details. As CEO, it is crucial to set both the vision and the rhythm for the company. He emphasizes the importance of reviewing all work before it is shipped."
He stated that he can work with people in detail without giving them specific instructions, and he now usually only provides feedback on projects once.
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Chesky attempted to replicate some of Apple's strategies under Steve Jobs in an effort to boost Airbnb's growth, which had slowed, and its expenses, mainly technology and administrative costs, were increasing, as reported by Forbes. Chesky's employees felt like they were working on a treadmill, putting in 70 hours of effort to achieve 10 hours of productivity, he told Fortune.
As Airbnb prepared to go public, the Covid-19 pandemic hit and wiped out about 80% of the company's global business. In response, Chesky started personally training new and existing employees and managers to create a "shared consciousness" within the company.
Airbnb's free cash flow increased from $97.3 million in 2019 to $3.4 billion by 2023, indicating improved profitability and business health, as per SEC filings.
The nuances of micromanagement
Chesky stated that employees are often initially resistant to a manager's involvement because the strategy contradicts the belief that if you hire skilled workers, you should let them work independently.
Chesky compared the strategy to working on your golf swing with a coach: You learn from an expert, without inadvertently developing bad habits from teaching yourself. "Even if [the worker] knows more than you about their function, they don't know more than you about the company or your standards or your pace," he said.
Tobi Lütke, CEO and co-founder of Shopify, believes that micromanaging is not necessarily a bad idea and has likely destroyed less business value than the belief that it is bad.
Being responsible for everyone involves micromanaging, which can help supervisors prevent mistakes before they occur, according to Lütke.
Workplace expert Tom Gimbel advised CNBC Make It in 2022 that the best bosses strike a balance between caring for their workers and holding them accountable. These leaders can provide honest feedback and motivate employees to perform at their best, while acknowledging that effort may appear differently on challenging days, said Gimbel, CEO of employment agency LaSalle Network.
Chesky stated that the reward for his extra effort in rebuilding Airbnb's processes is efficiency, as the company now has fewer meetings about things that went wrong, allowing him to have more free time.
"Chesky stated that without going into details, leaders will not be successful. Leaders are afraid to approach you, and you become involved later, which undermines their confidence. As a result, you end up with 10 different teams or 100 different teams going in 100 different directions."
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