What works at Airbnb? A new playbook by Brian Chesky (co-founder, CEO of Airbnb)
Brian Chesky, Airbnb’s co-founder and CEO, shares valuable insights into the company’s evolution, his leadership style, and the importance of avoiding bureaucracy.
He offers a unique perspective on product management and highlights the critical role of founders in shaping their organizations.
Streamlining Roles for Efficiency
To streamline operations and reduce redundancy between roles, Airbnb merged ‘inbound’ product development responsibilities with ‘outbound’ marketing responsibilities.
Combatting Bureaucracy
Bureaucracy can stem from different groups operating on slightly different technical stacks leading to backups in teams that everyone depends on.
It results in teams building their own divisions, further subdividing the company leading to politics and bureaucracy.
‘There’s a difference between micromanagement, which is telling people exactly what to do, and being in the details… Being in the details is what every responsible company’s board does to the CEO.’ – Brian Chesky
Balancing Marketing Strategies
Performance marketing should be used for balancing supply and demand but relying solely on it doesn’t create very good accumulating advantages.
A blend of performance marketing (like lasers) and brand marketing (like a chandelier) can effectively illuminate the entire market room.
Adopting a Rolling Two-Year Roadmap
Airbnb follows a rolling two-year roadmap instead of traditional annual plans or short-term planning cycles.
This strategy product roadmap gets updated every six months with releases happening twice a year.
Storytelling as a Key Strategy
Storytelling is crucial both in developing cohesive products and marketing them effectively.
The story often dictates the product’s direction as it needs to resonate with people while also serving as a useful tool for developing cohesive products.
CEO: The Chief Product Officer
In a product or tech-led company, the CEO should essentially be the chief product officer.
Stepping away from this role can lead to slower progress and less clarity.
Revamping Airbnb’s Approach
As Airbnb transitioned from a fast-paced startup to a slower-moving entity due to increased bureaucracy and over-involvement in leadership, Chesky implemented significant changes such as documenting all ongoing projects, reducing their number, removing layers of management, and transitioning back to a functional model similar to startups.
Prioritizing Functional Expertise
At Airbnb, each executive is required to be an expert in their functional domain rather than just being people managers.
This change has led to fewer employees but a more streamlined, efficient and agile organization.
Redefining Roles through Product Marketing
Airbnb implemented a new function called product marketing and redefined roles within its structure.
Many product managers were reassigned as program managers with expanded responsibilities which elevated the status of program management within the organization.
