On Strategy & Annual Planning
- The Goal is a Single Number: The most effective annual strategy is a single, clear metric (e.g., total deliveries) with a key constraint (e.g., minimum unit economics). This provides ultimate clarity and focus.
- Clarity Trumps Expansive Vision-Speak: When asked for a grand vision, the CEO’s best answer can be, "No, let’s just go out and hit the number." The leader's job is to set the objective; the team's job is to figure out how to hit it.
- A Single Goal Eliminates Indecision: When there is one clear goal, you never waste time on trade-offs. You always pick the option that gets you closest to hitting the number.
- Who Sets the Number? The CEO: The CEO is singularly responsible for setting the company's one, overarching goal. This decision is too important to be made by a committee.
- The Goal Must Be Ambitious but Not Impossible: The annual goal should be a "jump ball"—a 50/50 shot you can hit it. It needs to be ambitious enough to stretch the team but believable enough to inspire them.
- The CEO Owns the "Why": The CEO must be able to explain why the number is what it is, connecting it to the company's long-term ambition and market potential.
- Strategy is What You Don't Do: True strategic focus isn't about what you do, but about the hundreds of other good ideas you consciously choose not to pursue.
- Stop Saying 'World-Class Customer Service': This phrase is meaningless. Instead, define the specific service level required to win in your market and what you can actually afford. Is it a 1-minute response time or a 24-hour one? Be precise.
- Service is a Product, Not a Cost Center: Customer service should be viewed as a product feature that can be optimized. Determine the "minimum viable love" required from your service to retain customers and win.
- Don't Build a Roadmap, Build a "Walk": Instead of a traditional roadmap, build a waterfall chart ("the walk") that shows how the fewest, most impactful initiatives ladder up to the goal. This forces ruthless prioritization.
On Quarterly & Weekly Execution
- Avoid "Underpants Gnomes" Planning: A great business needs more than a desired outcome (Profit) and a list of initiatives (Collect underpants). It needs a rigorous, mathematical plan connecting the two.
- Build a High-Confidence Plan with a Metric Tree: Deconstruct your main goal into its component input metrics. This allows you to see exactly which levers you need to pull and to sense-check if your plan is mathematically possible.
- Ladder Every Initiative to a Metric: Every single project must be mapped to a specific input metric it's expected to move. If it doesn't, you must question why you're doing it.
- If There Are Too Many Steps, You Don't Understand the Problem: A famous quote from DoorDash's COO: "if there are too many steps in the walk, you don’t understand the problems well enough yet." Simplicity demonstrates understanding.
- The Weekly Cadence is the Cornerstone of the OS: The entire operating system hinges on a strict weekly rhythm: analyze on Monday, plan the fix on Tuesday, review with leadership on Wednesday, and execute on Thursday/Friday.
- The WBR (Weekly Business Review) Drives Focus: A single WBR meeting and its corresponding document focuses the entire company. If it's in the WBR, it's important; if it's not, it probably isn't.
- The WBR is for Problems, Not Updates: The WBR should focus exclusively on the 3-4 areas where the business is off-plan. It's a forum for problem-solving, not for sharing good news.
- The DRI (Directly Responsible Individual) Owns the Narrative: The DRI for a metric that is missing its goal must come to the WBR with a clear diagnosis of the problem and a plan to fix it.
- Clarity of Ownership is Everything: For a high-performing team, there must be absolute, unambiguous clarity on who owns what metric and what their objective is. This prevents diffusion of responsibility.
- Who Drives the Bus?: The DRI model ensures that a single person is "driving the bus" for every important metric and initiative, eliminating confusion about accountability.
On Daily Improvement & Culture
- Play Until the Clock Runs Out: A culture of "we hit our goals" means that if you are at 90% of your target with 3 days left, the question is always, "what can we do...in the next 3 days to close the gap."
- Small Improvements Compound into Greatness: Companies become great not just from big projects, but from "the compounding of all the tiny, seemingly inconsequential wins that every teammate accrues over the course of a year."
- You Can Always Fix Faster: If a team is missing its weekly goal, the correct response is, "great, let’s start a daily stand-up and meet back tomorrow with an update." This increases the reps from 52 to 365 a year.
- Get Loud: Great Companies Talk a Lot: High-velocity companies are "loud," with constant, high-frequency communication through public channels like Slack. This replaces slow, formal meetings.
- Embrace a "Full Send" Bias to Action: Don't get stuck in analysis paralysis. The default should be to act, test, and learn. Develop a bias for action and be willing to "huck it."
- Get Into the Weeds: True understanding and big insights don't come from a 30,000-foot view. They come from digging into the details of the business where the real problems and opportunities live.
- Root Out Bureaucracy with "Minimum Viable BS": Actively identify and destroy processes that slow down execution without adding commensurate value. Constantly ask if a process is the absolute minimum required.
- Culture is an Output of Your Systems: A culture of accountability, speed, and learning isn't built from posters on the wall. It's the direct result of the operating systems you implement, like the weekly WBR.
- Discomfort is a Sign of Progress: The early stages of building a company are filled with uncertainty and a feeling of being overwhelmed. This discomfort is a sign you are pushing boundaries, not a sign of failure.
- Lead with Optimism: Especially during challenging times, a leader's optimism is a powerful force for motivating the team and maintaining momentum. It's a prerequisite for achieving ambitious goals.
On People & Hiring
- Hire "Grinders, Sickos, and Lunatics": Look for people who are intrinsically motivated, obsessed with getting things done, and have an incredible work ethic. These are the people who drive outsized results.
- Bonuses are Dumb: Don't use bonuses. They encourage short-term thinking and can be demotivating. Instead, pay a strong salary and give meaningful equity to foster intrinsic motivation and long-term alignment.
- The Best People Want to Be Managed: High performers crave structure, clear goals, and direct feedback. They want a manager who can help them clear roadblocks and hold them accountable.
- Your Job as a Manager is to Be a "Remora": Attach yourself to your top performers and clear the path for them. Your success is their success.
- The VP Role is a Fundamentally Different Job: The transition to VP is a promotion no one teaches you for. It requires a shift from managing individual contributors to managing managers and influencing the entire organization.
- A VP's Job is to Be a "Shock Absorber": VPs must absorb the pressure from above and the chaos from below, creating a stable environment where their teams can execute.
- Hire for Slopes, Not Intercepts: Prioritize a candidate's trajectory and rate of learning (their slope) over their current knowledge or experience (their y-intercept).
- The Interview Question to Ask: "Tell me about a time you took on a project that was 100% your idea." This reveals initiative, ownership, and whether they are a true builder.
- Don't Outsource Your Thinking to Consultants: Consultants can provide data, but they can't own the outcome. Your internal team must own the strategy and the execution.
- Great Talent Wants to Join a Rocket Ship: The most effective recruiting tool is success. When you are winning and have a clear, ambitious mission, the best people will want to join.
On Product & Growth
- Your First Product Will Be Terrible: The first version of any product will likely be embarrassing. That's okay. The goal is to launch, learn, and iterate as quickly as possible.
- Solve a Real, Painful Problem: The foundation of a great company is solving a problem that is so painful for customers that they are willing to overlook your early product's flaws.
- Growth Can Mask a Leaky Bucket: Rapid top-line growth can hide serious underlying issues with unit economics or retention. You must fix the leaks before you scale.
- Focus on Input Metrics You Can Control: You can't directly control revenue. But you can control the inputs: the number of sales calls, the conversion rate of a landing page, the price of a product. Focus your energy there.
- Product, Ops, and Finance Must Be in Lockstep: In a business like DoorDash, the product roadmap, operational capacity, and financial plan cannot exist in silos. They must be developed and reviewed together.
- Launch a New Feature to Drive a Metric: New features shouldn't be built just because they are cool. Every major product launch should be directly tied to moving a key input metric on the "walk."
- Technology is the Ultimate Scalpel: Use technology and automation to solve operational problems and improve efficiency, allowing you to scale without linearly increasing headcount.
- Find Your "Magic Moment": Identify the single action or experience in your product that makes users "get it." Double down on getting as many users to that moment as quickly as possible.
- The Market Always Wins: You can have a great team and a great plan, but you can't fight the market. Be brutally honest about whether the market is pulling for your solution.
- It All Comes Back to the Number: The entire operating system—the strategy, the weekly reviews, the daily improvements, the hiring philosophy—is designed to do one thing: "go out and hit the number."
Sources:
- The DoorDash Operating System, part 1.
- The DoorDash Operating System, part 2: Who sets the number?
- The DoorDash Operating System, part 3: Who drives the bus?
- Stop saying you want 'world-class customer service'.
- Get loud.
- Full send: bias to action, in action.
- The weeds.
- Minimum viable BS.
- The DoorDash Operating System, part 0.
- Leading with optimism.
- Grinders, sickos, and lunatics.
- Bonuses are dumb.
- The best people want to be managed.
- Veep. The promotion no one tells you how to get.
- Consultants.