1/ One decision that no CEO likes to think about but every CEO eventually needs to make is why, when and how to fire an executive.

Operating Partner & Head of Crypto Startup School 
@a16zcrypto. 25 years working on frontier tech. 2X CEO, 4 exits & most recently VP Subscriptions at Google.

3/ Here’s a simple framework & process to determine if the person you’ve hired can do the job you need them to do and, if not, how to exit them with high integrity and efficiency.

4/ Start by going back to first principles in terms of why you decided you needed an executive to oversee the function in the first place.

5/ Was it to: Create more bandwidth for yourself to focus on other aspects of the company? Scale a core function, like product or engineering? Build strength & subject matter expertise in specific areas such as sales/bus dev, legal, marketing or finance?

6/ It’s essential that you’ve done your job as CEO during your new hire’s first weeks on the job including writing & sharing an onboarding plan and making time for regular 1-1s in order to answer questions & provide real time feedback & guidance.

7/ However, if, after a reasonable ramp up period, the exec isn’t able to deliver on the first principles objectives for which you hired them, chances are that they’re not going to be able to execute at the depth, breadth, pace & quality required for success in the role.

8/ Common symptoms include inability to: move at the speed the company needs, understand your tech at the depth required, or work effectively with the rest of the leadership team.

9/ I’ve seen this failure mode occur often when execs who were superstars at large companies with well defined processes and infrastructure encounter the rawness and pace of a hyper growth startup in which the modus operandi is eat lunch or be lunch.

10/ In these situations, the new exec needs to rewire their brain to learn, scale and execute at the depth and pace the job requires or they’ll need to go.

11/ As an empathetic leader, you as CEO may find yourself wanting to give them more time to learn and grow into the role but there quickly comes a time at which failure to take action is unfair to the rest of the team and puts the success of the company at risk.

12/ Andy Grove, the former CEO of Intel and one of the G.O.A.T.s  said that even the best leaders fire execs three months too late. 

https://fictivekin.github.io/pmarchive-jekyll/guide_to_startups_part8.html

13/ If you find yourself in this situation, immediately provide clear, written feedback on gaps and needed areas of improvement and give the exec a short but reasonable period of time to address the issues.

14/ If the exec isn’t able to address the issues, which people seldom are, then it’s time to take action in coordination with your HR and legal team.

15/ As you work through the process, remind yourself that while the exec in question wasn’t the right person for the job, it doesn’t mean that they are a bad person. You bear a meaningful amount of responsibility for failing to surface the key issues in the interview process.

16/ As they depart in search of their next adventure, be sure to treat them with respect, kindness, professionalism and generosity.

2/ While there is some great writing on executive hiring, as a first time CEO, I found myself piecing together the analysis and process in terms of when it was time to let someone go.

https://a16z.com/2010/10/13/hiring-executives-if-youve-never-done-the-job-how-do-you-hire-somebody-good/

In my time at Coinbase, the few times Brian and Fred had to part ways with an exec, the org was able to move way faster almost instantly.