Quotees Archive

In all the difficult decisions that I made through the course of running Loudcloud and Opsware, I never once felt brave. In fact, I often felt scared to death. I never lost those feelings, but after much practice, I learned to ignore them. That learning process might also be called the courage development process.

- Ben Horowitz

In any human interaction, the required amount of communication is inversely proportional to the level of trust.

- Ben Horowitz

In boxing, you get hit, it’s painful, then you sit on the stool when the adrenaline is gone and you feel that pain. And then you fight the next round.

- Ben Horowitz

Hard things are hard because there are no easy answers or recipes. They are hard because your emotions are at odds with your logic. They are hard because you don’t know the answer and you cannot ask for help without showing weakness.

- Ben Horowitz

Here’s Kanye, the great musical genius of his generation in hip hop, but, like, society really can’t even deal with him because he’s always saying something that people go, ‘Oh, I can’t believe Kanye said that. I can’t believe he did that.’

- Ben Horowitz

Hire sales people who are really smart problem solvers, but lack courage, hunger and competitiveness, and your company will go out of business.

- Ben Horowitz

How can we walk away from requirements that we know to be true to pursue something that we think will help?” It turns out that is exactly what product strategy is all about—figuring out the right product is the innovator’s job, not the customer’s job.

- Ben Horowitz

How do you make your company a good place to work in general? That’s a really, really, really large and complex set of skills. A lot of it is on-the-job training, combined with excellent mentorship.

- Ben Horowitz

How will your new job differ from your current job?

- Ben Horowitz

Humans, particularly those who build things, only listen to leading indicators of good news.

- Ben Horowitz

I described the CEO job as knowing what to do and getting the company to do what you want. Designing a proper company culture will help you get your company to do what you want in certain important areas for a very long time.

- Ben Horowitz

I do think a lot of people are trying to do important things still, and I think it is really a great thing that entrepreneurship is getting easier. When I started, it was just much harder to begin a company.

- Ben Horowitz

I don’t believe in statistics. I believe in calculus.

- Ben Horowitz

I emphasize to C.E.O.s, you have to have a story in the minds of the employees. It’s hard to memorize objectives, but it’s easy to remember a story.

- Ben Horowitz

I had a terrible time hiring rich people. It sounds funny, but the problem is when things go wrong they can ask, ‘Why am I doing this?’ You don’t ever want anybody asking that question. You want them to say, ‘I know why I’m doing it, I need the money, let’s go’ or whatever it is that draws them.

- Ben Horowitz

I learned about why startups should train their people when I worked at Netscape. People at McDonald’s get trained for their positions, but people with far more complicated jobs don’t. It makes no sense.

- Ben Horowitz

I often see teams that maniacally focus on their metrics around customer acquisition and retention. This usually works well for customer acquisition, but not so well for retention. Why? For many products, metrics often describe the customer acquisition goal in enough detail to provide sufficient management guidance. In contrast, the metrics for customer retention do not provide enough color to be a complete management tool. As a result, many young companies overemphasize retention metrics and do not spend enough time going deep enough on the actual user experience. This generally results in a frantic numbers chase that does not end in a great product.

- Ben Horowitz

I think that business book reporting, it’s all Jim Collins, it’s the story of victory; it’s success bias over and over again.

- Ben Horowitz

I think there’s a lot to be said about just enjoying your work. It can be very contrived when people say their work is for the good of mankind.

- Ben Horowitz

I think when companies are struggling, they don’t want to talk to the press. The guys who write business books aren’t interested in it because nobody wants to learn what it’s like to be a mess, you want to learn how to be successful. That’s slanted the whole thing quite a bit.

- Ben Horowitz

I try to help people with management stuff a lot.

- Ben Horowitz

I understood the importance of hiring for strength rather than for lack of weakness, and I understood the meaning of “fit.”

- Ben Horowitz

Early in my career as an engineer, I’d learned that all decisions were objective until the first line of code was written. After that, all decisions were emotional.

- Ben Horowitz

Either people challenge each other to the point where they don’t like each other or they become complacent about each other’s feedback and no longer benefit from the relationship.

- Ben Horowitz

Enforce functional training by withholding new employee requisitions. As Andy Grove writes, there are only two ways for a manager to improve the output of an employee: motivation and training. Therefore, training should be the most basic requirement for all managers in your organization. An effective way to enforce this requirement is by withholding new employee requisitions from managers until they’ve developed a training program for the TBH, “To Be Hired.”

- Ben Horowitz

Establish a core value that drives the business and helps promote it in perpetuity.

- Ben Horowitz

Even if we laid off 100 percent of the employees, the infrastructure costs would still kill us without a sharper sales ramp.

- Ben Horowitz

Every employee in a company depends on the C.E.O. to make fast, high-quality decisions.

- Ben Horowitz

Every time I read a management or self-help book, I find myself saying, “That’s fine, but that wasn’t really the hard thing about the situation.” The hard thing isn’t setting a big, hairy, audacious goal. The hard thing is laying people off when you miss the big goal. The hard thing isn’t hiring great people. The hard thing is when those “great people” develop a sense of entitlement and start demanding unreasonable things. The hard thing isn’t setting up an organizational chart. The hard thing is getting people to communicate within the organization that you just designed. The hard thing isn’t dreaming big. The hard thing is waking up in the middle of the night in a cold sweat when the dream turns into a nightmare.

- Ben Horowitz

Every time you make the hard, correct decision you become a bit more courageous, and every time you make the easy, wrong decision you become a bit more cowardly. If you are CEO, these choices will lead to a courageous or cowardly company.

- Ben Horowitz

Fascinatingly, as companies begin to struggle, the third category always seems to grow much faster than the first. In addition, the sudden wave of “semi-performance-related attrition” usually happens in companies that claim to have a “super-high talent bar.” How do all these superstar employees suddenly go from great to crap?

- Ben Horowitz

Few startup advisers and venture capitalists have any experience.

- Ben Horowitz

FOCUSING TOO MUCH ON THE NUMBERS In the second example, I managed the team to a set of numbers that did not fully capture what I wanted. I wanted a great product that customers would love with high quality and on time—in that order. Unfortunately, the metrics that I set did not capture those priorities. At a basic level, metrics are incentives. By measuring quality, features, and schedule and discussing them at every staff meeting, my people focused intensely on those metrics to the exclusion of other goals. The metrics did not describe the real goals and I distracted the team as a result. Interestingly, I see this same problem play out in many consumer Internet startups. I often see teams that maniacally focus on their metrics around customer acquisition and retention. This usually works well for customer acquisition, but not so well for retention. Why? For many products, metrics often describe the customer acquisition goal in enough detail to provide sufficient management guidance. In contrast, the metrics for customer retention do not provide enough color to be a complete management tool. As a result, many young companies overemphasize retention metrics and do not spend enough time going deep enough on the actual user experience. This generally results in a frantic numbers chase that does not end in a great product. It’s important to supplement a great product vision with a strong discipline around the metrics, but if you substitute metrics for product vision, you will not get what you want.

- Ben Horowitz

From a systematic standpoint, I think that capitalism is the best system. I can spend a lot of time explaining why I like communism, but it is actually not a good solution. Nor is socialism. So, capitalism is the right model.

- Ben Horowitz

Gentlemen, I’ve done many deals in my lifetime and through that process, I’ve developed a methodology, a way of doing things, a philosophy if you will. Within that philosophy, I have certain beliefs. I believe in artificial deadlines. I believe in playing one against the other. I believe in doing everything and anything short of illegal or immoral to get the damned deal done.

- Ben Horowitz

Going public today is fraught with peril on many levels. One is earnings guidance. If you miss guidance, the stock price becomes very volatile. Short sellers can put a tremendous downward pressure on the stock.

- Ben Horowitz

Good product managers crisply define the target, the “what” (as opposed to the “how”), and manage the delivery of the “what.” Bad product managers feel best about themselves when they figure out “how.” Good product managers communicate crisply to engineering in writing as well as verbally. Good product managers don’t give direction informally. Good product managers gather information informally.

- Ben Horowitz

Good product managers know the market, the product, the product line, and the competition extremely well and operate from a strong basis of knowledge and confidence. A good product manager is the CEO of the product. Good product managers take full responsibility and measure themselves in terms of the success of the product.

- Ben Horowitz

Good shareholder activists have incredible interest in the company because they own a lot of it.

- Ben Horowitz

Great CEOs build exceptional strategies for gathering the required information continuously. They embed their quest for intelligence into all of their daily actions from staff meetings to customer meetings to one-on-ones. Winning strategies are built on comprehensive knowledge gathered in every interaction the CEO has with an employee, a customer, a partner, or an investor.

- Ben Horowitz

Great CEOs face the pain. They deal with the sleepless nights, the cold sweats, and what my friend the great Alfred Chuang (legendary cofounder and CEO of BEA Systems) calls “the torture.” Whenever I meet a successful CEO, I ask them how they did it. Mediocre CEOs point to their brilliant strategic moves or their intuitive business sense or a variety of other self-congratulatory explanations. The great CEOs tend to be remarkably consistent in their answers. They all say, “I didn’t quit.

- Ben Horowitz

Groupon looked like a very high valuation, but any investment in a great company at any stage is almost always a good investment.

- Ben Horowitz

All the mental energy you use to elaborate your misery would be far better used trying to find the one seemingly impossible way out of your current.

- Ben Horowitz

An early lesson I learned in my career was that whenever a large organization attempts to do anything, it always comes down to a single person who can delay the entire project.

- Ben Horowitz

Another challenge is a phenomenon that I call the Law of Crappy People. The Law of Crappy People states: For any title level in a large organization, the talent on that level will eventually converge to the crappiest person with the title.

- Ben Horowitz

As a company gets big, the information that informs decision-making gets massive. Depending upon the prism through which you view the business, your perspective will vary. If two people are in charge, this variance will cause conflict and delay.

- Ben Horowitz

As a company grows, communication becomes its biggest challenge. If the employees fundamentally trust the CEO, then communication will be vastly more efficient than if they don’t.

- Ben Horowitz

As CEO, you should have an opinion on absolutely everything. You should have an opinion on every forecast, every product plan, every presentation, and even every comment. Let people know what you think. If you like someone’s comment, give her the feedback. If you disagree, give her the feedback. Say what you think. Express yourself.

- Ben Horowitz

As companies move to web-based computing they get a lot more servers, which are difficult to manage and control. All kinds of problems can arise – security, quality and worms.

- Ben Horowitz

As long as people are clear on what they need to do and what’s going on, you’re very likely to succeed. When nobody is clear, then you’re guaranteed to fail.

- Ben Horowitz