Shopify CEO says don't put founders in founder day care
In a recent episode of the “Founder’s Podcast,” Shopify’s CEO Tobi Lütke shared his insights on the treatment of founders within companies. He emphasized that many organizations undervalue the unique skills and experiences that founders bring to the table. Instead of nurturing these talents, companies often sideline them, which he likened to placing them in “founder day care.”
The Value of Founders
Lütke, who co-founded Shopify in 2006, believes that the entrepreneurial mindset is a valuable asset that should be recognized and utilized effectively. He stated, “I feel like it’s a very special thing,” referring to the unique perspectives that founders possess. Unfortunately, many companies fail to appreciate this and instead isolate these individuals, limiting their potential contributions.
Misplaced Talent
During the pandemic, Lütke observed that some founders within Shopify’s acquisitions were not being utilized to their full potential. He noted that they were often placed on “skunk work teams,” which he described as a form of day care for innovative thinkers. “It’s day care for people who tell you that your shit doesn’t smell right. And your shit does smell,” he remarked, highlighting the importance of listening to these voices rather than sidelining them.
Elevating Founders
Recognizing this oversight, Lütke took action to elevate the founders of Shopify’s acquisitions. He made a conscious effort to bring them into more visible roles within the company, allowing them to contribute meaningfully to Shopify’s growth. This included creating a dedicated Slack channel where he could engage with these founders and seek their insights and assistance.
Recent Acquisitions
Shopify has made several strategic acquisitions in recent years, including:
- Deliverr: A logistics firm acquired in 2022.
- Dovetale: An influencer marketing startup, also acquired in 2022.
- Threads: A workplace messaging platform acquired in 2024.
As part of these acquisitions, the founders of Dovetale and Threads have remained in product roles at Shopify, while the CEO of Deliverr has since moved on to start another logistics venture after a year with Shopify.
Identifying Adaptable Employees
In addition to advocating for the proper treatment of founders, Lütke also shared his approach to identifying employees who can thrive in challenging situations. He often asks potential hires, “Have you started a company before?” This question helps him gauge their adaptability and entrepreneurial spirit, which he believes are crucial traits for success in a fast-paced environment.
The Importance of Leadership
Lütke’s insights underscore the importance of recognizing and leveraging the leadership qualities that founders possess. By elevating these individuals and integrating their perspectives into the broader company strategy, organizations can foster innovation and drive growth. His experiences at Shopify serve as a valuable lesson for other companies looking to harness the potential of their talent.
Conclusion
In summary, Tobi Lütke’s message is clear: companies should not underestimate the value of founders and their unique experiences. Instead of placing them in roles that limit their impact, organizations should actively seek to integrate their insights and leadership into the company’s core operations. By doing so, they can unlock new levels of creativity and innovation that can propel the business forward.
Frequently Asked Questions
Tobi Lütke believes that founders possess unique skills and experiences that are invaluable to a company’s success. He argues that sidelining them limits their contributions and the potential for innovation within the organization.
“Founder day care” refers to the practice of placing founders in less impactful roles, such as “skunk work teams,” where their talents are not fully utilized. Lütke criticizes this approach, advocating for more meaningful engagement of founders within the company.
Shopify supports its acquired founders by elevating them to visible roles and engaging them directly in company discussions, such as through dedicated communication channels like Slack. This approach ensures that their insights are valued and utilized effectively.
Note: This article reflects the opinions and experiences of Tobi Lütke, CEO of Shopify, and highlights the importance of recognizing the value of founders in the business landscape.
