Saumil Mehta, a prominent figure at Square (now Block) and former CEO of LocBox, has shared a wealth of knowledge on navigating leadership without formal authority to the intricacies of organizational design.

On Leadership and Influence

  1. On leading without authority: The initial step to effective leadership without direct authority is to select the right problem to address. [1]
  2. Problem selection criteria: A problem worth tackling should be impactful, feasible to solve, and have a realistic scope. [1]
  3. The power of a sponsor: To gain traction, identify a person in a position of authority who is also invested in the problem you aim to solve. [1]
  4. Becoming the DRI: A crucial step in leading without authority is to be formally recognized as the Directly Responsible Individual (DRI) for a specific problem. [1]
  5. Influence is earned, not given: True influence is built by understanding and involving peers in the problem-solving process, not by relying on top-down directives. [1]
  6. The importance of listening: Before asserting your own views, it is critical to listen to your peers and understand their perspectives. [1]
  7. Give credit freely: To build influence for future endeavors, it's essential to acknowledge the contributions of everyone on the team, no matter how small. [2]
  8. Authenticity builds trust: Candidates, employees, and investors can detect inauthenticity from a distance. Being genuine is a highly underrated skill for a leader. [3]
  9. Embrace your leadership style: Mehta acknowledges his own style as "profane, verbose, snarky and hands-on," emphasizing the importance of self-awareness and authenticity. [3]
  10. Vulnerability is a strength: Being open about challenges and not having all the answers can be a powerful tool for a leader. [3]

On Organizational Design and Reorgs

  1. Org design as a tool: Think of organizational design as one of several tools in your management toolbox to drive change and progress. [4]
  2. Clarity of goals is paramount: The first principle of a successful reorganization is to have absolute clarity on the goals and the problems you are trying to solve. [4][5]
  3. Separate design from people initially: When designing a new organizational structure, start with boxes and arrows representing roles and responsibilities, not with people's names. [5]
  4. Iterate with human considerations: After establishing the ideal structure, you can then iterate to accommodate the aspirations and considerations of the individuals on your team. [5]
  5. Every team needs a charter: In a well-designed organization, every team should have a clear purpose and reason for being. Avoid creating a "junk drawer" for miscellaneous responsibilities. [5]
  6. Design for durability: Aim for an organizational structure that can last for at least 12 to 18 months to avoid the loss of confidence that comes with frequent changes. [5]
  7. Communication is key: Poor communication can undermine a well-planned reorg. Be intentional and thorough in explaining the "why" behind the changes. [4][5]
  8. Decentralize decision-making: Strive for a decentralized organization where decisions are made throughout the organization, not just from an "ivory tower." [6]
  9. Embrace trade-offs: Every organizational design has benefits and downsides. Acknowledge the downsides you are willing to tolerate for the sake of the upsides. [7]
  10. GM-led structure: At Square, a General Manager-led structure with P&L ownership for specific products allows for single-threaded leadership and focus. [4]

On Managing Managers and Scaling Teams

  1. Managing managers is a different skill set: The transition from managing individual contributors to managing managers requires a new set of skills and a shift in perspective. [8]
  2. The "API endpoint" thought experiment: To effectively manage managers, imagine you can only interact with your direct reports (the managers) and not the individual contributors. This forces you to be clear and strategic in your communication. [6]
  3. Don't undermine your managers: When interacting with individual contributors, avoid providing immediate solutions or strong opinions. Instead, listen, ask questions, and work through the manager. [9]
  4. Don't cover for a weak manager: Shielding a struggling manager and doing their work for them will not solve the underlying performance issues and can make the situation worse. [6]
  5. Task-Relevant Maturity (TRM): Use a team member's experience with a specific type of project to determine the level of delegation and review required. [9]
  6. Look one level up when a manager struggles: Often, the root cause of a manager's struggles lies with their own manager (the "skip lead"). [6]
  7. The importance of skip-level leaders: Effective "skip leads" are crucial for scaling organizations across different products, countries, and revenue streams. [8]
  8. Hiring is a critical leadership function: As a leader, you are responsible for hiring the right people and coaching them to succeed. [8]
  9. Provide clear expectations: Setting clear expectations for your managers is fundamental to their success and the success of their teams. [9]
  10. Patience and pattern matching: Becoming an expert at managing managers takes time and the ability to recognize recurring patterns. [8]

On Product and Strategy

  1. Mirror the customer lifecycle: Even as the world changes, the fundamental customer lifecycle of awareness, consideration, conversion, and retention remains the same. [10][11]
  2. Invest in omnichannel: Businesses need to meet customers wherever they are, whether it's online, in-store, or through mobile platforms. [10]
  3. The blurring lines of commerce: The distinction between retail, restaurant, and services is becoming increasingly blurry, leading to the rise of mixed-use businesses. [11]
  4. Hyper-personalization is key: To attract and retain customers, businesses need to move towards hyper-personalized experiences. [11]
  5. The rise of self-use gift cards: A surprising trend is the significant number of gift cards being purchased for personal use, indicating a shift in consumer behavior. [11]
  6. The move towards a cashless society: The pandemic accelerated the trend of businesses going cashless, a shift that is likely to continue. [11]
  7. AI for operational efficiency: Generative AI can help businesses of all sizes automate operations and speed up workflows. [12]
  8. Democratizing technology: Square's goal is to make powerful technologies like generative AI accessible to all businesses, not just large corporations. [11][12]
  9. The power of an ecosystem: An integrated ecosystem of products and services provides a significant competitive advantage. [6]
  10. Platform thinking unlocks innovation: Building a foundational platform, like Square's Orders Platform, can accelerate product development and unlock new capabilities. [7]

On Personal Growth and Career

  1. Pay attention to regret and jealousy: These emotions can be valuable signals that help you make more informed decisions about your future. [11]
  2. Embrace the journey: Mehta's personal story, from an immigrant student to a GM at a major tech company, highlights the importance of perseverance and embracing the unexpected turns in one's career. [3]
  3. Continuous learning: Even after years of experience, there is always more to learn and refine as a leader and manager. [8]
  4. The value of writing: Writing down your learnings and principles can help you clarify your thinking and make it more effective for yourself and others. [4]
  5. From startup to big company: The transition from a small startup to a large corporation requires a shift in mindset and an appreciation for the different ways of working. [9]
  6. Access and visibility in large companies: Contrary to popular belief, it is possible to have good access to leadership and information in a large company. [9]
  7. The double-edged sword of abundance: While large companies offer more resources, this can sometimes lead to a small amount of waste that adds up across the organization. [9]
  8. Reconciling with different paths: It's important to be open to different career paths and not be dogmatic about working only in startups or large companies. [9]
  9. Finding your voice as a leader: It can take time for first-time founders and new leaders to overcome impostor syndrome and find an authentic leadership style. [3]
  10. The impact of your work: Mehta emphasizes the importance of being conscious of the contributions we make to the world through our work. [10]

Learn more:

  1. Saumil Mehta's Guide to Effective Leadership Without Authority - SOFX Report
  2. Advertising Mediums and CPO - B2B Marketing Zone
  3. From Alien to American, from Jail Cell to General Manager | by Saumil Mehta - Medium
  4. An org-design masterclass from a Square GM | Saumil Mehta - First Round Review
  5. 5 principles of effective re-orgs (Saumil Mehta, GM at Square) - YouTube
  6. Five principles for successfully managing managers - Lenny's Newsletter
  7. An org-design masterclass from a Square GM | Saumil Mehta - YouTube
  8. Five principles for successfully managing managers - YouTube
  9. SaaSxAI Weekly Vol.154（5/19〜5/25のSaaSトピック）：「モチベーションの正しい見つけ方」「ミドルマネジメントをうまく機能させる5大原則」 など
  10. Saumil Mehta - Medium
  11. Square's Saumil Mehta Talks Building A Relationship With Post-COVID-19 Customer | #Next1000 Summit
  12. Recap: Square Unboxed 2024