Peace, War and Everything in Between
A couple of weeks ago, I finished reading “The Hard Thing About Hard Things”, a book so revered in Silicon Valley that venture capitalists might as well hand out a copy along with their investment checks. Authored by Ben Horowitz, whose exploits are the stuff of legend, the book offers a treasure trove of lessons and experiences from the trenches of entrepreneurship. While the entire book is fascinating and a must-read for those interested in entrepreneurship, I was particularly drawn to his classification of Wartime vs. Peacetime CEOs.
What are Wartime and Peacetime CEOS?
A captain, seasoned in navigating only tranquil waters, may excel in speed and maximizing daily distances covered. However, the instant they face turbulent seas, the dynamics shift dramatically. The qualities that once distinguished them as an exceptional leader may suddenly become liabilities.
Similarly, companies operate in much the same way, with their successes and failures often dictating the need for leadership transitions. These fluctuations — the peaks and troughs — are precisely why certain types of CEOs are needed at different moments. In the book, Ben Horowitz does a great job explaining how both styles differ in fundamental leadership aspects.
Decision Making
Wartime CEO: “Knows that good decisions are rarely made with perfect information. In fact, the best decisions are often made with very little information. The key is to be decisive and act quickly, even if you’re not 100% sure you’re right.” (p. 24)
Peacetime CEO: “Spends a lot of time making sure she has as much information as possible before making a decision. She wants to get buy-in from all the stakeholders. She wants to make sure everyone is on the same page.” (p. 24)
Focus
Wartime CEO: “Cares about a speck of dust on a gnat’s ass if it interferes with the prime directive.” (p. 226)
Peacetime CEO: “Focuses on the big picture and empowers her people to make detailed decisions.” (p. 226)
Culture
Wartime CEO: “The war defines the culture. You don’t get to choose it. You just have to live with it.” (p. 227)
Peacetime CEO: “Spends time defining the culture. She wants to create a culture that attracts and retains top talent.” (p. 227)
Competition
Wartime CEO: “Thinks the competition is sneaking into her house and is trying to kidnap her children.” (p. 227)
Peacetime CEO: “Thinks of the competition as other ships in a big ocean that may never engage.” (p. 227)
Goal
Wartime CEO: “Aims to win the entire market.” (p. 227)
Peacetime CEO: “Aims to expand the market.” (p. 227)
Tolerance for dissent
Wartime CEO: “Neither indulges consensus-building nor tolerates disagreements.” (p. 227)
Peacetime CEO: “Strives for broad-based buy-in. She wants everyone to feel like they have a voice and that their opinions are valued.” (p. 227)
So now that we have a baseline understanding of what this means, let’s start applying it through the lens of startups and technology because it becomes particularly fascinating.
Most successful startup founders and visionaries are forged by war. They had to move quickly, act unabashedly, and enact their whims in order to really see their vision play out in the world. They have years marked by uncertainty, the company essentially being on life support, and a “Hunger Games”-like survival to the end type of mentality. This approach generally means they have a disregard for processes, rules, employee health, or anything else slowing down progress. Which is great and exactly what a company at that point needs. Until it isn’t. Which is where they either change drastically or step aside for someone who is what the company needs.
Where wartime CEOs are applauded for their remarkable “short-term growth”, peacetime CEOs are lauded for their sustainable, incremental long-term growth. They cut down on risk, improve efficiencies, and take the building blocks left by the wartime CEO to turn the company into a corporate juggernaut. We are long past surviving; we are now onto thriving. They are typically MBAs, people who have thrived in the corporate structure and have a clear vision on not necessarily how to create, but how to improve. They aren’t known for their creations rather their ability to be the world’s best operators.
Both wartime and peacetime CEOs are critical at certain points in the company’s life. The best transitions are always the ones that recognize when this is the case. Let’s look at some real-life examples.
Apple
As is now custom in my newsletter, let’s start off with Apple first. Steve Jobs is arguably the best Wartime CEO ever. He brought Apple from the ground up twice and set the foundation for products that would lead Apple to become the biggest company in the world. A lot of the traits listed for Wartime CEOs above were absolutely exemplified by Steve Jobs.
However, Apple in 2011 was not the same Apple that Steve Jobs once knew. The war was over; this was peacetime. And the best thing Steve Jobs could’ve done for Apple was hand the baton over to Tim Cook. Because Tim Cook is a phenomenal peacetime CEO.
Despite their status today, I think Apple is going to go to war again in the next couple of years and while I think Tim will leave before that happens, it makes the choice of his successor even more important. Because that person doesn’t necessarily have to be the next Tim Cook, in fact, they likely have to be very different. But what that means in practice will be very interesting to see.
Twitter (X)
Alongside Steve Jobs, Elon Musk could also be labeled the greatest Wartime CEO of all time. SpaceX and Tesla accomplished feats that most labeled impossible even 10 years ago. Elon’s blatant disregard for the system and processes is quite well documented, and there are very few people I would like to drag me out of the mud than him.
Contrary to what you may believe, I actually think Jack Dorsey is also a wartime CEO. But I think while Twitter has required a wartime CEO for years now, Jack Dorsey diverted that attention to Block and Square, which led to a lack of innovation at Twitter.
So when Elon bought the company, he did exactly what a wartime CEO should’ve done for years. He cut inefficiencies, completely upended the roadmap, and started to bring the company worthy to fight in a war. Even if you look at the last couple of months, the amount of progress the app has made rivals the total progress made in the last 5 years.
This makes me very excited to see what the future of Twitter, now known as X, holds.
Google has been at peace for a long time. Having a cornerstone that is search, for over 20 years, Google has been the definition of what amazing peacetime can look like.
Their steady acquisition of key products and services such as YouTube, Android, and Google Cloud, and diversification into multiple, often leading positions in various markets (e.g., online video, mobile operating systems, and cloud computing) highlights a peacetime strategy of growth and expansion.
But that’s what makes this moment in time so unfamiliar to the company and its leadership. ChatGPT, or more broadly, generative AI, represents a wartime threat that Google hasn’t faced in over a decade.
While Sundar Pichai is a great CEO, it is worth questioning whether his peacetime leadership style is what Google needs to navigate this tumultuous period. Google’s response to the rise of ChatGPT with Bard, its version of a conversational AI, and other strategic moves in AI, will be crucial to its success in this new competitive landscape.
So, what’s the takeaway?
The essential lesson isn’t about the superiority of one type of CEO over the other but about recognizing the context in which a company operates and understanding that leadership styles need to be adaptable to that context. Transitioning from a wartime to a peacetime CEO (or vice versa) marks a critical inflection point that can significantly influence a company’s direction. It involves knowing when to be aggressive and when to focus on growth and innovation, and importantly, recognizing that the qualities leading to success in one phase may not be the same ones needed in the next.
There are very few leaders who can adeptly navigate both realms. Ben Horowitz believes he’s one of them, and Satya Nadella is perhaps the most notable example of someone who has excelled in both capacities. His early focus on cloud computing showcased wartime aggressiveness, while his later investments in areas like AI and partnerships demonstrate a peacetime strategy for sustained growth.
However, most companies will face a moment when passing the baton is crucial for continued success. Recognizing when that time has come is key to ensuring the company’s longevity and relevance in a constantly evolving market landscape.
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Rishabh Jain is the founder of Mewt, a new fintech app that helps simplify business banking in India by unifying accounts offered by state and private banks under one account.
We go through what led Rishabh to create this App, his experience switching from the corporate route to startups as well as how he used Square’s example to guide his creation of Mewt.
I loved getting more insight into the opportunities and challenges of creating in the Indian Market.
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Thanks for reading,
Daivik Goel
