Build your business right

Founder Freedom is written for Founders, CEOs and top managers in companies at the 5-25 stage, who are struggling with the issues that come with growing a company: hiring, firing, setting pay, getting people to give each other feedback, structuring work - and, mostly, getting to grips with this whole new world of "getting people to work together".

There is a lot of advice out there on how to do this, but most of it is grounded in obsolete, overly hierarchical ways of thinking. Bad structures end up extinguishing creativity and making the business a prison for everyone from the least employee to the founders.

It's possible to do better, but for that you need to try the new ways of working being pioneered by many companies around the world, from Bridgewater to MorningStar, Github (some time ago) to Netflix, Buurtzorg to Patagonia.

I built one such company, from 2010 to 2019 (it's still running, but I'm no longer working there). In this book, I share the key principles and tools that I developed along the way, to save you time and aggravation and speed up your journey towards freedom.

Daniel Tenner is a serial entrepreneur, author, blogger and YouTuber. You can find him on Twitter as @swombat.

1: It starts with you
​It involves everyone
Forge your own path
The work will change you
What do YOU really want?
Integrity trumps predictability
Build a company you’d want to work for
What if it’s not your company?
Make this book work for you
​2: Transparency is the game-changer
​Without transparency, trust is impossible
Transparency doesn’t create problems, it reveals them
Transparency keeps everyone honest… including you
Be transparent about financials (yes, even YOUR pay)
Secrecy is a virus… and so is transparency!
If you can’t see for yourself, it’s not transparent
When the law requires secrecy, share as much as you can
Aim transparency up, not down
You’re always on the record
Skip the secret chat groups and closed meetings
​3: Treat people like adults
​There are no B players
Adults are responsible for themselves
If you treat people like children, they behave like children
Default to trust, get rid of probation periods
People have lives outside the office​
​It doesn’t matter where or when they work
Celebrate goodbyes instead of treating them like betrayals
Be generous and flexible on the way out
Welcome friendships and relationships in the office
No bullies allowed
Violence is incompetence
Your gun has only one bullet
​4: Hiring can make or break your company
​You’re more interesting than you think
Stay involved in hiring as long as you can
Measure diversity at every stage of the pipeline
Hire for growth, not specialty
Bad recruitment begins with bad job design
If you wouldn’t apply for this job, don’t hire for it
Great companies stand out through great job ads
Job titles need to attract clicks
Job ads are about them, not you
- Start with an emotional hook
- Provide the context for their work
- Show how their work fits in
- List examples of detailed responsibilities
- Be careful about arbitrary requirements
- Advertise a clear salary range
- If you don’t use inclusive language, your hiring will suffer
Immediately filter out those who make no effort
Phone screens should let most people through
Test competencies, not the ability to talk about work
Culture fit interviews are about listening and asking “why?”
Use the play interview to evaluate teamwork
Don’t make hiring decisions by committee
Reject people promptly and with useful feedback
Make salary a discussion, not a negotiation
Meet with every new hire personally
​5: Make the most out of the differences between people
​Don’t try to separate the work self from the whole self
Check in at the beginning of every meeting
Support neurodivergence in the workplace
When people feel safe and supported, they heal themselves
People grow and change through time
People at different stages need different support structures
The Kegan scale: a powerful model to make sense of people
- Overall concept
- Stage 1: Impulsive
- Stage 2: Self-Sovereign
- Stage 3: Socialised
- Stage 4: Self-Authoring
- Stage 5: Self-Transforming
- Some systems look similar
- People change when the previous system fails
- Cultural background has a huge impact, as does trauma
Self-Sovereign people need very clear, strong boundaries
Socialised people need established, consensus-based systems
Self-Authoring people need to co-create their path
Self-Transforming people need flexibility and pragmatism
What about your own level?
Design a system that hits all levels at once
​6: Feedback is the progress engine
​Most people suck at feedback
Build feedback into other, regular processes
Praise is cheap but goes a long way
Actively train people on how to give good feedback
Diffuse status issues that get in the way of feedback
If you’re not vulnerable, no one else will be
Never publicly shame people for mistakes
Turn mistakes into a positive event
​7: Explicit systems help people make decisions without you
​Where explicit structures are lacking, implicit structures rule
How does work get done around here?
Build the right structures and the behaviour will follow
Self-management is management
Make systems explicit so they can be understood and improved
Hierarchy of people vs hierarchy of roles
Roles delegate purpose, not tasks, jobs or responsibilities
Job titles don’t matter internally
Discourage asking for permission
The “advice process” is a good starting point
Most people do two jobs: the one you hired them for, and the politics
Governance is about how power is distributed
Consider implementing Holacracy
​8: If you don’t pay people right, they will leave
​There’s no such thing as fair pay
Good enough is a moving target
Conversations about “the pay system” are often about something else
Salary review is everyone’s job
Secret rewards will bite you later
If you’re afraid of people taking advantage, you screwed up
If you give people something to push against, they will push
Pay decisions are not as arbitrary as they seem
If they are worth it, you want to pay people more
Extrinsic motivation is a risky bet
Intrinsic motivation is a better alternative
Ill-thought bonuses can wreck the system
Shares and options support long-term relationships
How to enable people to set their own salaries
If some people need more support, build a hybrid system
​9: Firing people badly destroys trust and safety
​How people are treated on the way out matters a lot
Most companies get firing wrong
Firing is really a hiring mistake
Be transparent about what’s happening
Don’t allow impulsive firing
Performance-related firing:
- The process must be clear, documented, known, and open to feedback
- Firing people has to begin with clear, written feedback
- Interpersonal conflicts are not a good reason to fire someone
- The process must be designed and resourced to help the person improve
- If the process works, the person will agree to leave at the end
If you need to cut costs, be decisive and transparent
Support people on the way out
​10: Get on with it!
​This is what it takes, and it’s worth it
Some people will tell you you’re crazy
You will not only free yourself, but everyone who works with you
Need help? Get in touch with me!

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