Tomasz Tunguz on Hiring the Right Talent, Firing the Wrong Execs, and Navigating M&As

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Recorded02 Nov 2023

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Tomasz Tunguz is a General Partner at Theory Ventures and the writer of one of the best blog/newsletters in tech. Tom joins Kelli Dragovich and Nolan Church to discuss the relationship between boards, founders and People leaders, and how HR strategies interact with boards in key moments of a company’s history, including M&A. If you’re looking for HR software that drives performance, check out Lattice https://www.lattice.com/hrhereticsAfter the interview, Nolan and Kelli discuss the dynamics of navigating politics at work in your companies.–SPONSORS: Lattice | Continuum✅ Discover HR software that drives performance with Lattice: https://www.lattice.com/hrheretics High performance and great culture should never be at odds; they’re better together. With Lattice People Management Platform, companies efficiently run people programs that create enviable cultures where employees want to do their best work. Serving 1000s of customers of all sizes. Learn why companies from Slack to the LA Dodgers choose Lattice. https://www.lattice.com/hrheretics✅ Hire Fractional Executives with Continuum: https://bit.ly/40hlRa9 Have you ever had a negative experience hiring executives? Continuum connects executives and senior operators to venture backed tech companies for fractional and full-time roles. You can post any executive-level role to Continuum’s marketplace and search through our database of world-class, vetted leaders. There is no hidden cost, you only pay the person you hire. And you can cancel at any time.–RECOMMENDED PODCAST: Every week investor and writer of the popular newsletter The Diff, Byrne Hobart, and co-host Erik Torenberg discuss today’s major inflection points in technology, business, and markets – and help listeners build a diversified portfolio of trends and ideas for the future. Subscribe to “The Riff” with Byrne Hobart and Erik Torenberg: https://link.chtbl.com/theriff–KEEP UP WITH TOMASZ, NOLAN, + KELLI ON LINKEDINTomasz: https://www.linkedin.com/in/tomasztunguz/Nolan: https://www.linkedin.com/in/nolan-church/Kelli: https://www.linkedin.com/in/kellidragovich/ –LINKS:Tomasz Tunguz’ Blog: https://tomtunguz.com/Theory Ventures: https://theory.ventures/Tom on Span of Control: https://tomtunguz.com/span-of-control/–TIMESTAMPS:(00:00) Episode preview(02:40) Span of Control: eliminating middle management(04:19) Tom's take on the ratio of managers to doers(06:19) What should ARR per employee be?(07:19) Talent today vs 5 years ago(08:30) Tom's view on exec searches(11:45) Evaluating the decision for a down round(13:15) Sponsors: Lattice | Continuum(15:00) Opportunities for new talent(16:45) Flexibility of Mind(19:15) Hiring: Getting it Right and Changing When It Goes Wrong(20:40) How should departures be communicated to boards?(21:00) Life cycle of an executive(22:49) On interim roles(25:15) How Tom diligences people(26:20) What makes a great head of people(30:30) Google's acquisition of Looker from Tom and Kelli's perspective(31:00) How does a Mergers and Acquisition process work?(37:00) The 3 kinds of Acquisitions(39:15) Where the puck is going for venture-backed tech companies(41:25) Predictions for AI(43:55) HR Folks and founders should get back on the offense in 2024(45:00) Kelli and Nolan on navigating politics at work–HR Heretics is brought to you by Turpentine www.turpentine.co Producer: Natalie Toren Production: Graham Bessellieu, Michelle Poreh For inquiries about guests or sponsoring the podcast, email [email protected] This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit hrheretics.substack.com

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