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Brian Halligan
If I put 10 calories and try to improve the feature I get like a thousand out and so I more paid attention to the features and tried to get better at the features and this took me a while to figure this out and over time just tried to hire people around my weaknesses and I have plenty of them. I really looked at hiring the best I could in the areas where I was weak rather than trying to become an expert at it. And I'll give you one area and for years I was convinced I was a great product designer. I'm not, I just don't have that genetic code. I was actually quite bad at it. It took a while before that feedback sort of hit me between the eyes and we started hiring people really good at it and enabling me to let go of it.
Shane Parrish
Welcome to the Knowledge Project. I'm your host Shane Parrish. In a world where knowledge is power, this podcast is your toolkit for mastering the best of what other people have already figured out. If you're listening to this, it means you're not a supporting member. Members get early access to episodes. My personal reflections at the end of episodes, which a lot of people say is quickly becoming their favorite part. No ads, exclusive content, hand edited transcripts, and so much more. Check out the link in the show notes for more information. My guest today is Brian Holigan. Brian reshaped the way that we think about marketing, sales and customer service with his co founding of HubSpot in 2006. He pioneered the concept of inbound marketing, emphasizing the importance of creating valuable content to attract customers. Naturally, under his leadership, HubSpot has grown from a startup to a publicly traded company and a global leader in the industry, empowering millions of businesses to grow better. I first met Brian at a Sequoia conference where we both spoke. In the conversation we talk about the phases of a CEO from startup to ipo and how the skills change, why interviews are a terrible predictor of on the job success and what you can do about it, why hiring panels are flawed, what changed after his near death experience, why Jerry Garcia from the Grateful Dead is one of the most underrated CEOs and what you can learn from him, why consensus is the enemy of scale, why you need to have winners and losers, what he learned from Steve Jobs and of course, the future of inbound marketing. It's time to listen and learn. My dad works in B2B marketing. He came by my school for Career Day and said he was a big roas man. Then he told everyone how much he loved calculating his return on ad spending. My friends still laugh at me to this day. Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to LinkedIn.com campaign to claim your credit. That's LinkedIn.com campaign. Terms and conditions apply. LinkedIn, the place to be. To be. Brian I want to start with the role of a CEO and the journey from startup to scale up to public company.
Brian Halligan
It's a remarkable journey. And I was on that journey for about 17 years. And a couple of years ago, I stepped out of that journey. Shane in a relatively dramatic way. And you may have heard the story before. I was snowmobiling up in Vermont. I was taking a snowmobile from Range Water, Vermont to Woodstock, Vermont, coming to the hairy part of the trail and went up over a lip and went down on the other side and just completely lost gravity. Went straight down, up a cliff and smashed at the bottom. The snowmobile was in about a million little pieces. I was passed out for a long time. And then I woke up. It was about 4 in the afternoon. It was quite cold and nobody knew where. I was confident I was going to die. And I sat there for a good hour thinking about, you know, if I do make it through, then what? And I never bring my phone when I saw him because in Vermont, there's no signal. The whole darn state, there's no signal. But an hour in, I'm like, maybe I brought it. It turns out I brought it like a. And I checked it and dialed 911. Shane, have you ever dialed 911?
Shane Parrish
I have, yeah.
Brian Halligan
It's an amazing service. If that was a startup, I would be thrilled to invest in it. It's amazing. The woman was sort of very, very good. And she said, I remember, she said, sit tight. And mind you, I have. I'm a mess. Many, many, many broken bones. And so it's like, chuck this. Yeah, I'm not going anywhere. And then she called the two local fire stations and their volunteer and there's no in the air. And so then she has to track down the mobile phone numbers of all the firefighters and the rescue people call someone home, they hop in their snowmobiles and they come and find me. And by the time they found me, you know, it's pitch black, it's really cold out. And they said they went to work on me and kind of put Humpty Dumpty kind of back together on the side of the mountain, towed me to a Flat area, which is a few miles away, helicoptered me to Dartmouth University. And there they really put Humpty Dumpty back together over lots of surgeries, a lot of time. And I remember that because that was the end of my CEO journey. I had been quietly saying to myself that I didn't love being CEO of HubSpot, frustrated with just the core work. And I remember saying to myself, at the bottom of that cliff, I make it out, I'm not coming back. And so I was out of work. A terrific woman took over for me. Funny story about that. While I was gone and as I got back on my feet, everyone just assumed I was coming back. Like, no, no, no, I'm not coming back. You're doing a great job. You got this. And I actually think a lot of CEOs would be a lot happier if they did something similar like that. Not some of your part, I assumed.
Shane Parrish
Yeah. What went through your head when you. You sort of couldn't move, you're stuck in the snow and you couldn't contact anybody? Like, what. What are the thoughts that were going through your mind?
Brian Halligan
I'm not super comfortable telling everyone all my thoughts on this, but a lot of thoughts around, if I make it out of this, somehow someone finds me randomly, what's going to change? But then, I mean, the net of all of them is, life can be very short, very short. You never know what will happen. And don't waste it. Don't waste time doing something that doesn't make sense for you, you know, refactor your life. And I refactored my personal life and I refactored my professional life pretty dramatically. And these days I really don't do anything I want to do. And I wanted to do this podcast. It's a really good podcast.
Shane Parrish
Thank you. Tell me about what the changes were. Like. Were they all at once? Were they slow? Like, be specific about sort of. I always wonder this because I had a near death experience too, a couple years ago. And I remember pondering life and thinking about, oh man, if this is the end, like, did I spend the time the way that I wanted to? And if it's not the end, like, what is it that I really want to change in life and what impact will that have? And I've done such a better job of sort of taking care of my body and my mind and sort of self care, if you will, just as a big word to encapsulate that. I changed a lot of relationships in my life. I sort of invested in some and then I wouldn't say, broke off some, but definitely stopped investing in some. And so I'd love to hear about the specific things that you, you did that you sort of were like, okay, well, this is, this is the realization.
Brian Halligan
It's exactly like that. When I say refactor relationships, I triple down on family relationships. I wouldn't say ended relationships, but I certain people that didn't give me energy in certain ways and just stopped engaging with. And it's a much smaller group I engage with these days professionally. I stopped my main job. I mean, I founded HubSpot 17 years earlier. It was kind of my life and everything was sort of wrapped up in it. And now chairperson. So I'm still involved, but not in the day to day. I got obsessed with maybe similar to you with longevity. I'm like, well, if I'm going to live to 85 90, I want to be very strong living 85 90. So basically anything Peter Attia or Andrew Huberman said to do, I did. Except they drink a little. But I basically do everything they do. Lost a lot of weight, got much better shape. And so lots and lots and lots of changes. But I think the macro one was just love your family, tell your mom you love her. Hug your kids one more time today and don't waste time. You know, do things that really are rewarding to you.
Shane Parrish
One of the big things for me was like just being home for the kids every day after school. I just made a commitment. I was like, I'm going to be here every day when they get home. I'm not going to push it at the office a little longer. I'll find other ways to do that because I'm also sort of balancing ambition and all this other stuff. But it wasn't going to come at the expense of the time with them that I know inevitably I'll look back on and be like, man, I just wish for a little bit more cookies and milk.
Brian Halligan
They say the dying wish of every man, and they just want another day. And they think about that a lot. Like, what am I going to wish I hit down at the end of my life. So, Sheen, while we're on this, why don't you tell us what happened to you?
Shane Parrish
I didn't know for a long time what was happening to me. I just had symptoms and they kept getting worse and worse and worse. And so like, I, I had a fever, then I had an earache. And this was during COVID So everybody thought it was Covid. So I went to the doctor and they were like, oh, you don't have an ear infection. You're fine. You don't have Covid. Go home. Suck it up. And then I woke up on a Saturday, and I remember just making a latte, and then I was drinking it, and it spilled down my chest, okay. And I was like, what the heck? I've been drinking out of cups. And so it's like two. You know, rarely do I spill something. And I went. And I went to the bathroom, and I looked in the mirror, and the left side of my face was 100% paralyzed. And so I had no movement whatsoever. I felt like I was moving things. But, like, if I raise my eyebrows, like, you can See now on YouTube if I raise my eyebrows, this. It was actually kind of beautiful. In hindsight, it was freaky when it was happening because this. And it just didn't move. And I was like, oh, God, like, I gotta go to the doctor. My first thought was actually not to go to the hospital, which is a little weird. So I show up at my former family doctor's office on the weekend, and they're like, you need an appointment. It's Saturday. And I was like, well, I can't move my face. So I think that qualifies as, like, maybe I get an appointment today. And she's like, oh, my God, Yes. You see the doctor right away. I go into the doctor, and she's like, I think you're having a heart attack. And I was like, well, this doesn't make a ton of sense, right? Like, maybe. I don't think that's the case. However, you're the doctor. I don't know what I'm talking about. And she's like, you need to drive to the hospital. I was like, well, if you think I'm having a heart attack, why are you telling me to drive to the hospital? Yeah, it was like, these two things don't align. Anyway, I go to the hospital, I see a doctor right away. I mean, for all of the knocks on Canada's healthcare system, there are certain things in triage that they. They definitely see you. I saw a doctor probably within three minutes of getting to the hospital. And, you know, he's like, you're not having a heart attack. I was like, thanks. And then it's like, go sit and wait for, like, 12 hours while we handle all the other urgent people, which is fine. And so he sees me and he's like, I'm going to give you some prednisone, and you'll be fine. And I remember going like, wait, what? Like, you're just Going to give me some steroids and like send me home. Like, nobody cares about how this happened. I'm a healthy at the time, 42 year old male. I'm not overweight. You know, I don't smoke, I don't excessively drink. I have nothing that would sort of indicate this. When I was in the waiting room for the 12 hours, I started talking to a whole bunch of neurologist friends and they were like, you should get tested for these four things. And it was like hiv, Lyme disease, mono and something else. And I was like, can I just get a requisition to get tested for this? And he's like, no, it's just like a waste of the medical system.
Brian Halligan
Oh man.
Shane Parrish
And I was like, wait, what? Like that doesn't make sense. He's like, go talk to your family doctor. They'll, they'll figure that out. I gotta go help other patients.
Brian Halligan
Watch your face at this point.
Shane Parrish
Well, it's still paralyzed, right? So he's like, you're gonna recover. He's like, you have a 99.8% chance of recovery. And I'm like, I'm not worried about recovering, I'm worried about what caused this. Right? Like before we figure out the future, we have to figure out like, what am I doing something I need to stop. And I went to my doctor on Monday and I was like, hey, can I get a requisition for these blood tests? Which in the States you just show up and do it. And in some provinces in Canada you can just show up and do it too. But in Ontario, where I live, they won't allow you to do that. You need a requisition anyways. She says no, for whatever reason. She's like, if the ER doctor thought you needed it, he would have given it to you. Please fuck off politely is sort of what she said. And I was like, well, this is so weird. And I'm thinking about this and then I wake up a few days later and I can't stand.
Brian Halligan
Oh man.
Shane Parrish
So the backs of my knees, like if I'm moving, I'm fine, but if I stand still for like 10 seconds, I'm literally crying. There's tears coming out of my face. I've never been in so much pain. It's like somebody stabbed the back of my legs with a knife. And I was like, wow, this is like so crazy. And up, like emailing my doctor again, I'm like, I really think I should get tested for a whole bunch of stuff at this point. Like, I don't know what's happening. And she's like, slow. Knowing me, she's like, it'll get better. Just give it some time. And then, like three or four days later, I wake up and I can't open my mouth. Like, I have a lock job. Basically, I can open it like a centimeter. And luckily, to cut a long story short, I end up talking to a close friend of mine who happens to be an eye surgeon. She's like, I'll give you the requisitions. She gives me the requisitions. I test positive for Lyme disease. I start the treatment for Lyme disease, because when you test positive, you can actually, you can fix it. And so I start taking. I think it's doxycycline, the antibiotic, which is the treatment for that. And instant improvement. The cool part of this is I saw a neurologist in Ottawa who tested me for like 200 different things. Uh, you know, I went down to give blood, and the lady's like, this is the maximum amount of blood we're allowed to take out of you. I was like, oh, this does not sound really good. And I came back completely normal aside from the Lyme disease. So I'm glad we caught it, glad we solved it. You know, made a. Made a lot of changes after that. I want to go back to you and HubSpot, though. So, like, you been on this journey for a long time, from startup all the way to scale up to now public company, sort of chairman. Walk me through the different phases a CEO goes through.
Brian Halligan
I personally break them out. Like two to 20 employees, 20 to 200, 200 to 2000 and then 2000 plus. And I kind of grade myself in these seasons. Like, I give myself a B in 2 to 20. Like 2 to 20. I was doing customer development. I was the lead user of the product. I was marketing it. But I'm a crappy coder. And so the heavy lifting was really done by my co founder. 20 to 200, I was kind of in my element. I loved it. I was an A, 200 to 2000, maybe a B, and then 2000 to 8000, maybe a D. I really didn't like the work. And I think that's the case with a lot of CEOs and a lot of executives and a lot of people. Like, people have a season that they enjoy and they get good at it. I think that's very much the case.
Shane Parrish
For me, which was the one where you felt like you had to grow the most to fulfill the role really.
Brian Halligan
Through the whole thing, I felt under qualified to do it. And I don't know about you, but I still have imposter syndrome here on the podcast. And I had it throughout. I think one of my superpowers actually is I'm a learner and I try to get better and I listen to other people and I take feedback pretty well. And we had a mechanism that was quite good for giving me feedback. Really good, actually. My co founder was responsible for my annual 360 review. He's super introverted, so he didn't want to go around and talk to other people. So he sent a Net Promoter survey out to the board, the execs, customers, a whole bunch of people, 30 different people. He got a lot of responses, maybe 25 responses. And there were two questions, Shane. One was, on a scale of one to 10, how likely you refer Brian as CEO of HubSpot? And two, why did you give that answer? And people wrote not like novels about it. And it's hard for CEOs to get feedback. Very hard. Very few people give straight feedback to the CEO. So this was a good way to get the end was big enough that people get very, very strong feedback. And he summarized to give me my Net Promoter score. And then I started reading my review. And each page was different. So the first several pages were my features. And he's a software developer. He's like, here's your features. So page number one, you're very good at explaining HubSpot's vision. And then he pulled out quotes from the novels. People wrote page two, page one through 10 were features and they were great. And I was pretty confident that I was the best CEO ever invented after reading the first 10 pages.
Shane Parrish
And then the bugs came.
Brian Halligan
Page 11 was the bugs. And there were 12 pages of bugs. And I was pretty convinced I was the worst CEO ever invented by the end of the 12 pages. And I remember when I finished it, I'm not a scotch trigger, so I remember I poured a glass of scotch. But that mechanism for getting feedback was we still use it. So the current CEO gets the same type of a thing. And it's very, very, very useful. I think founder CEOs often have this problem that like founder CEOs like to make decisions, like to be involved with the details, like to drive things, like to be in the middle of things. And that's a great strength when you've got 10 people. But that great strength you have turns into your greatest weakness when you have a thousand people. You're trying to manage everything. You're Trying to manage every now everything's going on. And so the consistent feedback was like, how do you get yourself out of the details? How do you stop working in the business? How do you start working on the business? That was kind of a common thread that I worked on across all 17 years.
Shane Parrish
Was that feedback enough for you to walk away going like, okay, I see this, People are giving me feedback, I accept it. There's some truth to this. Or was there a part of you that was like, no, they're wrong.
Brian Halligan
It was pretty. It was pretty accurate. And I shaking my head through most of it. In the software business, sometimes there's something that someone thinks is a bug, but is it feature to somebody else? So some of my bugs I actually thought were features. Like, I can be really passionate about something and Brian gets so passionate, it's like a little scary. Sometimes I'm like, fine, if like 2 out of 30 of you think that and the rest think it's a good thing, I can live with that. So there were several things I was like, that's a bug that I can live with. And every year I try to work on one or two about the bugs. If I put 10 calories and try to improve a feature, I get like a thousand out. And so I more paid attention to the features and tried to get better at the features. And this took me a while to figure this out. And over time just tried to hire people around my weaknesses and I have plenty of them. I really looked at hiring the best I could in the areas where I was weak, rather than trying to become an expert at it. And I'll give you one area where I made a mistake on this. In the early days of HubSpot, I fashioned myself like a great product designer. I don't know why I did. I think basically because I followed Steve Jobs, everything he did, read every book about him, watched his keynotes. As obsessed with him as CEOs are my era. And I was like, I can do that. I can figure it out. I took classes and I really dug in and for years I was convinced I was a great product designer. I'm not, I just don't have that genetic code. I was actually quite bad at it. It took a while before that feedback sort of hit me between the eyes and we started hiring people really good at it and enabling me to let go of it.
Shane Parrish
What are some of the lessons you took away from your sort of studying of Steve Jobs, if you will, that you used effectively?
Brian Halligan
One of my favorite things on the interwebs, it's his keynote at his commencement speech at Stanford. I think it's quite good. And once in a while, I look back at that he was faced with cancer. And the way he approached that was really interesting. And he says it in a different way, but he didn't waste any time, that's for sure. And then HubSpot, a lot is based on his work. We started the company out of Sloan while we were in business school. And at Sloan, they did field trips, and we did a field trip to the west Coast. And I remember this one day was a really good day. In the morning, we visited Apple. It was like a year after the ipod came out and it was on fire. And I remember Steve walked into the auditoriums about 100 of us, and he was in a bad mood and it was pretty intimidating. And I remember he looked out and he basically was like, what are people doing here for business school? Like, he wasn't into the whole business school thing. And one of my classmates, JP Gorski, raised his hand up high and he said, we're here from Sloan School of Management, and we're studying innovation disruption. And we thought we'd learn from the best. And Steve just melted. He liked that a lot. And then he talked about how we came up with the ipod and kernels of this very much made it into the way we thought about HubSpot and the ipod. The way he described was really simple. There were MP3 players before, but you had to be a real geek to use one, and very few people were buying them, and you had to burn music to them. It's a pain in the neck to do it. And he said, I really wanted something simple. So I wanted to take an MP3 player, build a freemium app, itunes, and then work with the record companies, enable you to download a song for 99 cents a song. And he said, that's a 1 plus 1 plus 1 equals 10 for the consumer. And that was how we originally came up with HubSpot. Like a marketer in that day and age, putting Google Analytics and a blog and social media tracking tools and SEO tools, marketing automation, CRM and all this stuff. And it was complicated. It was big hairy problem. And so we used that analogy very much that Steve used. Like, how do we make an all one system where the one plus one plus one will equal 10 across all the systems? So the morning was really influential. And then that afternoon, and we're kids, we're in business school, we visited a little startup called Salesforce.com and their CEO, Marc Benioff, and so that day was really formative in thinking about HubSpot.
Shane Parrish
Oh, that's crazy. Had you guys just taken your tuition and invested in both of those companies?
Brian Halligan
I know. That's a good point.
Shane Parrish
That's crazy. So you started it in school. How did you learn how to hire and fire people? Like, how do you know you have the right fit? How do you know when it's time to move on from somebody? You know, I think about that as somebody who went from school to a large corporation and they have all these policies and procedures in place. And then now as an entrepreneur, I'm dealing with CEOs all the time. You've never really hired and fired. And I'm curious as to what wisdom you can sort of pass on to people.
Brian Halligan
Most CEOs, including myself, are quite bad at this. And I've identified some things that may be useful hacks may not be useful hacks. This is also a seasoned thing. If you're hiring someone when you're 200 employees, I see the mistake everyone makes, and we made the mistake over and over and over and over and over again that if you're hiring someone that you want to go from 2 to 2000, you're just really attracted by that person who came from Google or Microsoft or whatever huge company with a huge resume and all that stuff. And once in a blue moon, that'll work. But generally that's a failure condition. If you hire with a press release hire that's a couple phases over you. I don't think it normally works. Same thing for board members. My analogy for being a CEO is like you're an ice climber going up the ice and it's treacherous and you could easily split. And what you're looking for are executive members who have been up that same sheet of ice, but in the last three or four years. What you don't want is somebody who's 20 years over you or someone who spent their whole career on top of the hill, looking down on the ice climbers. You want somebody just a little bit ahead of you on that ice climbing mission. But that's one thing I think people get wrong. I also think. I think most people are bad interviewers, including myself. Like, I've missed a bunch. And I think the core reason for that actually isn't the interview. It's interviewees. Interviewees are so good in interviewing. You're interviewing a VP or a C level person for a company like HubSpot, they're good at interviewing. And if they're not, they've been coached they've looked on YouTube. Like, I just think everyone, including myself, overvalues their ability to select talent in the interview process. I see that as overconfidence. I think also, like, I see it with the CEOs I work with and I see it as companies get bigger. Like, you've got a panel of four people evaluating Shane as a potential vp. If all four people like Sheen versus two people love Sheen and two people are like, I'm not sure about Shane. You almost always go with the person with the least amount of weaknesses in that lowest common denominator higher. I think that's a failure conditions. We've noticed that over time. I take two loves and two mez over three likes. I think that's a best practice that people should be doing. And I think people should be obsessed with reference checking. Yeah. Calling the references. Getting good at that. Getting good at finding people in your network who have worked with them. I would guess I coached tons of CEOs on average. For every director, VP, C level person that's hired, within 18 months, they're gone.
Shane Parrish
How do you know when it's time to move on from somebody? Or I guess in a way you've either made the wrong hire or it's the wrong environment for that person to succeed or however you want to phrase that. But how do you recognize that? I had a CEO the other day tell me he's like, the moment you start thinking about it, that's the moment to act on it. I've never seen anybody change their mind from that initial thought. How do you think about that and what's your reaction to that?
Brian Halligan
Unfortunately, that's. I feel like that's conventional wisdom. And I think it's largely puts with what I've seen. I rarely change my mind on people in that kind of context. And everyone says when you know, you should move quickly. I never have call me weak.
Shane Parrish
Have you ever regretted not moving quickly? It's sort of interesting to contrast that to sort of like Jensen, who's been talking recently about, you know, he doesn't really fire people. He sort of like berates them into being better in a public way. Berate is probably the wrong word, but he sort of wants to pull you towards excellence rather than fire you. But I don't think that's practical for most people or most organizations.
Brian Halligan
So you and I both sat through the same Jensen presentation. So I spent a lot of time thinking about CEOism and coaching CEOs and there's sort of like a set of best practices for being a CEO. It's almost like a CEO unofficial school. What's confusing about the CEO school that's been around for a long time is arguably the two, I'm not going to say best, but two amazing CEOs are Jensen at Nvidia and Elon at SpaceX. And they completely ignored almost everything about CEO school. CEO lessons, CEO best practices. And I find that fascinating.
Shane Parrish
Talk to me about that, right where maybe there is no model. We hold up this model, we teach it, it's easy to do, we say the right things. But in reality, the people that end up changing the worlds are often the opposite of all of the points that we teach. Berkshire Hathaway, for example, if you looked at their board of directors, I don't think they pass any of the sort of, like, standards that business schools would set for what an independent board looks like. And Constellation Software is another example of that. So with Shopify, all these companies that have sort of done these remarkable things, they don't look anything like what we're taught in business school.
Brian Halligan
When HubSpot was maybe like 50 employees. Shane I joined the CEO group. And I largely joined the group because I respected one of the CEOs and a guy named Colin Engel. And Colin made the Roomba vacuum cleaners at iRobot. And we described my relationship with him in two words, man crush. I really was a fan of Collins. And I remember this first CEO group. We met all day, once a quarter. And there's a couple funny things about the CEO group. But I joined and I just remember spending some time with these 10 CEOs, and two were kind of. They're quirky is the way I would describe them, and very unique personalities. And the other were like central casting. A blue blazer, tan pants, like really central casting backgrounds and everything. And they acted what I thought CEOs were supposed to act like. And I kind of acted like that back then. And when I looked at the numbers, we all showed each other numbers. The two quirky founders, CEOs were crushing it. And the eight central castings were whipping. And I was like, enough with trying to be central casting. I'm going to be exactly who I am and we're going to make everybody else work around who I am. And it's a lot easier being who you are than somebody else. Everybody else has taken. That was when I was like, I'm quirky too. I don't care that I'm quirky. I'm just going to lean into my quirkiness and be myself. And I've sort of been that way ever since. And I don't think there's a profile of CEO.
Shane Parrish
You're talking earlier how you'd love to hire somebody with two. I love this person. And to Matt, is that because of that? Because the person who says all the right things, everybody's going to be okay with. But the unconventional person you're going to get really two extremes. You're going to get love or hate.
Brian Halligan
I think what happens as a company scales is you hire for a lack of weakness, not for spiky strengths. And that's institutionalized in the scale ups interviewing panel and process. And I think that's a mistake. And that's one of a few things that leads to really mixed success in hiring execs in these companies.
Shane Parrish
Who do you think is the most underrated public company CEOs?
Brian Halligan
I think the guy running Uber has done a nice job. That was a very, very, very difficult thing. He took over. He got it profitable. I think he's done a really, really nice job. Very quietly done a very good job. How about you?
Shane Parrish
Oh, gosh. I think Toby is massively underrated. We were sort of talking about him during the break here. What are your thoughts on Toby?
Brian Halligan
Toby reminds me a lot of Colin Engel, actually. Just whip smart. One of the things I like about Toby and Colin is their very first principles. Thinker. They don't care to receive conventional wisdom. They're going to think it through from scratch. And sometimes they're going to get it wrong, but a lot of times they're going to get it right and do something really innovative and smart. Toby's got so much right. He's got some big stuff wrong. But for the most part he's done a really, really good job. He's certainly not central casting. Yeah, certainly not. But I think he's brilliant and a great CEO and he's running a great company.
Shane Parrish
I like that term, central casting. Another person who stands out to me most people are probably familiar with now, but 10 years ago nobody would have ever heard of is Mark Leonard from Constellation Software.
Brian Halligan
He's not really on my radar.
Shane Parrish
Yeah, exactly. I think they only issued equity at the IPO and they're. I don't know, it must be 50 to 60 billion dollars company now.
Brian Halligan
Amazing. I see. I wouldn't put Toby in the underrated because I rate him so highly and I feel like people in my circles rate him highly.
Shane Parrish
Yeah, I rate him highly too. And I still think I underrate him.
Brian Halligan
Okay, got it.
Shane Parrish
Yeah, yeah, totally.
Brian Halligan
There's one other interesting thing That's, I think, relevant out of that CEO group. I remember going to the CEO group meeting, the first meeting, Jane, and what I didn't realize is there was a topic for the whole day. And one of the quirky things about HubSpot up into that point is we didn't have any HR people. We didn't allow anyone to talk about culture because we didn't think we could measure. It was too squishy. And I remember I arrived there on the first day. First thing that got put up was the topic of the day, and sure enough, it was culture. And I remember thinking, that's going to be a big, big waste of time. At least I got to know my man crush. The whole morning. I was pretty disengaged. And then Colin at lunchtime, I remember he said to me, he's like, why aren't you engaging? You don't like the topic, do you? I said, no, I think it's a waste of time. He said, brian, culture. Culture is how people make decisions when you're not in the room. Culture is how companies really scale. Okay, okay, okay, okay, Got it. And then the afternoon sort of engaged in it. And then the next day I go to the office and my co founder, Dharmesh, says, how's the. How was it? How's Colin? Like, how did it go? I said, it was really, really good. There's. There's one. They do one topic a day. Said, oh, what's the topic? I said, it's culture. Oh, shit. What a waste of time. I said, no, Dharmesh, culture is how people make decisions when we're not in the real culture is how HubSpot's gonna scale. And he said, okay. And it's very hard for me to assign work to my co founder to this day. Somehow I assigned him to be the culture czar at Pub Spot. And he did an excellent job and still is doing an excellent job of marshalling the culture from 50 employees, 8,000 employees. And he did two clever things. First thing he did is, we're big on net promoter surveys. So he surveyed all the employees, scale them 1 to 10, how likely to refer HubSpot as a place to work. And then, why again, people wrote novels about it. And he kind of broke it all up into, you know, different topics. And then he wrote a PowerPoint presentation called the Housewife Culture Code that basically described the relationship between employees and company and just sort of outlined how we thought about culture. And then he posted it on the Internet, and it blew up on the Internet. But we Continue to do that Net Promoter score once a quarter for the last 15 years. And we've been tracking our Net Promoter score per quarter and that's been very, very useful. Then we post every response to the Net Promoter survey on culture on the wiki and then we address the issues that come up. That best practice is served as well. Every six months, we refactor the PowerPoint deck. It's a living, breathing document and we basically treat culture like our second product, like our product, HubSpot. If it's unique relative to the competition, good quality product and it delivers value. It's like a magnet that pulls customers in and retains them. Same thing with a culture. If it's unique relative to the competition, it's high quality and adds value. It's like a magnet that pulls in employees and retains them. And so we put a lot of thought into that culture stuff and I think a lot about how do you take, how do you go from start to scale up? I think a key part of that is getting your culture right and writing it down and institutionalizing it.
Shane Parrish
I'm going to make a statement about culture and I'd love for you to argue, take both sides of the debate, if you will. So I'm going to say that culture is the only sustainable advantage.
Brian Halligan
I disagree.
Shane Parrish
Why?
Brian Halligan
Let's take Uber. They had a certain culture. Dara, the new CEO, came in. I'm quite sure he made massive changes to the culture the founder put together and he thrives. I don't. I think some of the benefit, of course, is his culture, but they had major sustainable competitive advantages in that they had a fleet of drivers and customers and the network effect and software that works. And he's probably been there 10 years and I don't think it's all culture.
Shane Parrish
Oh, that's interesting. So in my mind, I would sort of think of that more like they had a advantage, like an operational advantage that came from the network effect and the scale. I don't know if that would have been enough to sustain it going forward without the culture, but I sort of agree with that.
Brian Halligan
I think the best example on the other side of this is Satya. Satya is on my Mount Rushmore CEO. A lot of people push back on me. It's like, oh, he wasn't a founder, he shouldn't be on there. He's on there for me because Microsoft was going very sideways for a long time and he stepped in and really did change the culture in a massive company and couldn't be more impressed with him in the culture. Change and how well that worked. So that's my flip side of the argument. It's Satya.
Shane Parrish
Okay. Who else is on your Mount Rushmore?
Brian Halligan
Jerry Garcia is on my Mount Rushmore. Great CEO, the aforementioned Steve Jobs on there.
Shane Parrish
Why Jerry Garcia? Grateful Dead.
Brian Halligan
Really? Why Jerry Garcia? That's the most obvious one on there. Why?
Shane Parrish
No, I'm curious. I'm not a Grateful Dad. I've never. I don't think I've ever really sat down and listened to the Grateful Dead. So, yeah, you're going to have to walk me through this one.
Brian Halligan
Okay. Jerry Garcia was the CEO cut in the cloth of Colin Engel and Toby Lucky. Really disliked conventional wisdom and kind of rethought everything from first principles, starting with the music. So they started that band in the mid-60s, and at the time there was all kinds of rock and roll music and there was jazz music, country music and bluegrass music. And they didn't do any of that. They created a new genre of music people referred to as jam bands now. But Garcia himself was a bluegrass player and the bass player was a jazz musician and the keyboard player was a blues guy. And Bob Weir, the singer was kind of a country rock and roll guy. And they blended them all together and they infuse this jam band mentality into it and they really stretch the songs out with improvisation. So they sort of rethought the genre and made a new type of music. The product was unique and the go to market was exceptionally unique. If you think of like when I was in high school, if I wanted to go to a Rolling Stones concert, I would call Ticketmaster and I would wait till whatever it is, 1:30 on a Tuesday and the Rolling Stones tickets were on sale and I would, you know, dial away, be five minutes later, dial away, intermittently knock up through. The people who ended up buying most of the tickets were the scalpers. The scalpers had a whole bunch of people buying the tickets that sold the tickets in a markup. And so the front row of the Rolling Stones concert was a bunch of bankers, of venture capitalists, people who could afford the tickets. And the gravel didn't like anything about that chain, nothing about it. They particularly didn't like a bunch of bankers and venture capitalists in the front row of their concerts. They wanted their hippie crazy fans in there. They also didn't like the distribution setup. So it's Grateful Dead and then Ticketmaster took their slice and then scalpers took their slice and then the fans. So they said, we're going to disintermediate Just like the Internet did do so many things. We're going to disintermediate those two layers and we're going to sell tickets directly to customers. The way they did it was you listened to a 415 recording that explained what was going on. And the way Shane, you would buy the tickets was you have to put a 3x5 card which concert you went to. You can only buy four tickets per concert. Okay. So the scalpers are less incentive. And then you had to go to the post office to get a postal money order. So just a total pain in the backside to get a postal money order. And then you had to put a self address stamped envelope. And then you put in a regular envelope and melted in. Now how would the grateful bed chain decide who gets the front row seats?
Shane Parrish
I have no idea.
Brian Halligan
The way they sort of did it was that self addressed stamped envelope. The more beautifully you could decorate it with dancing bears and mushrooms and sprinkles.
Shane Parrish
I love it.
Brian Halligan
Yes. So they solved a bunch of problems. That's not the end of it. When was the last concert you went to, Shane?
Shane Parrish
Oh God, it's been a long time.
Brian Halligan
Did you go to Taylor Swift?
Shane Parrish
No. I am a Taylor Swift fan.
Brian Halligan
Okay. Let's just say you went to Taylor Swift in Ottawa. Yeah. And you showed up with your giant camera and your boom microphone and you showed up there. What would have happened at the gate?
Shane Parrish
They wouldn't let me in.
Brian Halligan
Why? Why doesn't she want you recording?
Shane Parrish
It might affect other people's experience if I have a boom micro. I mean you can't prevent people from recording on their phones. So at some degree they're accepting it. The NBA actually went through this a couple years ago. They were trying to like really block people from posting clips on social media. Then they actually embraced it and it changed the whole league, Mark. It got way more people. Sorry, this is like a sidetrack to this but like that change in the NBA really changed the NBA.
Brian Halligan
Okay. Pre iPhone. Let's say you were going to a Rolling Stones concert and you had all that equipment. You're walking, of course they would block you. And the reason is you see the Rolling Stones in Boston and New York and then Philly and then Miami. The exact same concert. Like they don't miss a note. They're fantastic. Same thing when you walked into the Grateful Dead with your big boom mic and your big camera, they put you right in the taper section, the perfect spot to watch the concert. They incentivized you to tape it and you Taped it. And then you went from Boston. Then you went to New York. You taped it. You went to Philly, you taped it. Then you went to Miami. Then you get back to your dorm room, and you copied as many tapes as you could of the best concert, not the worst concert, and you gave them out to all your friends. And that was how they marketed. They gave away the content. They were the first inbound marketers to really nail that. They were the first real freemium model. They were the first viral marketers. And the way they did was brilliant. And it worked for them because every concert was quite unique. They're a jam band, so they've never played the same set list twice. And so there was an incentive for knuckleheads like me to go from Boston to New York, up and down the East Coast. In fact, I did that last week. I was at the Sphere, and I saw them Friday, Saturday, Sunday. Garcia was a genius. He's a marketing genius, actually. And I think he's a music spot.
Shane Parrish
That's fascinating. Oh, I'm going to have to listen to the Grateful Dead now. I'm like, I'll send you some stuff. Yeah.
Brian Halligan
I wrote a book on this called Marketing Lessons from the Grateful Dead.
Shane Parrish
We started talking about inbound marketing there. I'm curious as to. You guys pioneered inbound marketing to. To a big extent and definitely got the momentum rolling there. How has that changed in the past few years, and where is that going in the next few years?
Brian Halligan
Ironically, I think it kind of went out of favor a bit over the last few years, and I think it's about to come back in favor. The things that change about it aren't that different. Instead of, like, cold calling people and spamming people and advertising at people in renting space on YouTube or renting space on your podcast or your blog or renting space on the New York Times, create your own New York Times, your own podcast, and become your own publisher, and then pull people in through Google and search and other social outlets. It works very, very, very well. You're living proof of how well it works and the things that have changed or the social media networks have changed. When we first wrote about this, before we started HubSpot, we started writing about inbound marketing. Dig and Reddit were the two big social media sites. I don't think Diggs around, and Reddit's gone through all these iterations, but obviously with Facebook, and now it's TikTok, it's Instagram, it's all these new social media sites. It's YouTube you know, people live in YouTube, it's podcasts and so the medium isn't necessarily a long form blog like it was back when we started HubSpot. It's videos, a lot of short form videos. And so that's changed quite a bit. I think what's interesting about what's going on now is today you go to Google and you get your 10 blue links. If you look across our customers, that 62, 63% of the inbound traffic is via Google and most of it's organic. I think over the next five years that's going to change a lot. I think Google's going to have to change a lot and I think people are going to spend more and more of their time inside ChatGPT and they're all ChatGPT's competitors. And I think when you're engaging in that way and you do a search in ChatGPT for let's say HubSpot will tell you about HubSpot and then you'll say, well how does HubSpot compare it to Salesforce? It'll tell you about that. How much does HubSpot cost? It will tell you that like people know a lot about HubSpot. One of the brilliant things about Google is their blue links and they didn't mind sending out their website. It's very counterintuitive idea. I think that's going to start changing as consumer behavior changes and I think it'd be really interesting to see how it develops.
Shane Parrish
Do you think content is just going to get overwhelming? I mean you can create content with like two sentences now. You can create blog posts that would rival probably the best people were putting out maybe 10 years ago with almost no effort whatsoever.
Brian Halligan
I think you're right and I think it's not just that, but it's going to be emails. Like I think the robo emailing and the BDR is, I look at lots of startups in the CRM spaces might imagine, but there's accounted about 48 startups building automated AI agents. I still think having a unique perspective and a unique personality is going to work. I, I don't think your podcast goes away because I start something that sounds like you and I use an avatar to deliver it. I think something, what you're doing will last the test of time. And I think a lot of people, particularly in scale ups, run away from their personality. They make it generic and like you have a certain vibe and a certain personality. I think that kind of works for you. And it's going to be very hard to replicate quality and uniqueness never go out of style. And I think are going to be increasingly important as the Internet just fills content that's AI generated.
Shane Parrish
It's almost what you said before, like lean into your individual quirkiness and your tribe will sort of find you and then go around with you. Although you have me worried. We're almost a million people on our newsletter now. I'm like, oh God, if this is going away, I got problems.
Brian Halligan
I also think we're going to see the trend and I'm certainly not the first person to say this, but I think you're going to see a lot more small, big companies and you're going to be able to get a lot more done with a lot less people. I don't. I think in a billion dollar company you're going to need 3, 4, 500 person marketing organizations. I think the new tools are coming out, including HubSpot's tools and the CRM suite. I just see how incredibly powerful they are. I think you're going to be able to scale in a whole new way. And I think the AI revolution, like when it comes to inbound, I think top of the funnel gets more difficult. I think middle of the funnel gets easier. Really high quality personalization on your website, on chat, on everything that gets much more powerful. Top of the funnel gets more difficult. Yeah, I think inbound's going to change, but I also think inbound going to kind of make a comeback.
Shane Parrish
How do we do outreach in a world of AI and in a world where people are bombarded with is it going to be freemium and then pulling people in through that and like the outreach is letting them know about the freemium stuff.
Brian Halligan
You got to get good at the branding thing again, it turns out, because getting into your or my inbox is going to become exceptionally difficult. With all the changes Google's making to email, that's getting harder as it is. But the robo emailing is going to go wild and the robo content is going to go wild. So it's a little more around branding. You have to kind of be good at everything. It's like a baseball 5:2 player. You have to be getting found in YouTube, you have to be getting found in all the social sites. ChatGPT is going to understand you perfectly well. Google's going to understand perfectly well. And you need people tripping over you all over the place. I think people have to get comfortable with the fact they're going to have less new visitors to their website because ChatGPT and their ilk are going to know so much about you and not have those lists of blue links. They're just going to live on there and learn so much about you. And then when someone's quite serious, they end up on your website and you have to get very good at personalizing that website experience. I also think people are going to end up keeping more information behind the paywall or the login wall on their websites because they want to keep a little bit back from ChatGPT because ChatGPT is going to understand the public stuff so well. I think it's going to change in a good way though.
Shane Parrish
I guess the baby step that Google made on that was like when they would just show you sort of the excerpts. If you asked a question, it'd be like basically giving you a link. But it's like really hard to find. It's like, here's the answer to your specific question. YouTube is fascinating because unlike voice podcasts, YouTube has virality to it. So like when we do an in person recording, the YouTube reach is larger in some instances, not all, than our podcast reach. And so we get like 300,000 people sort of listening to a podcast episode. But on YouTube we'll get 300 to 500 to a million nice people. But it's YouTube's algorithm picking it up. It's like, people watch this. Uh, but what we can't do is like send people off that platform. So it's really good for like stats. Like I, I was at the gym the other day and this guy's like, I got 2 million TikTok followers, but I can't do anything with them.
Brian Halligan
Yeah.
Shane Parrish
So, so I can keep them on this app and I'm really famous in this localized environment. But TikTok is 100% in control. I don't own that relationship. Same as YouTube. I don't own the relationship with the viewer. YouTube does. The minute it doesn't like me and wants to cancel me or doesn't like my content anymore or wants to promote a different message, whatever that algorithm is that's doing that can just like, you're gone.
Brian Halligan
I think you're right. I thought Google was going to roll over and play dead there for a little while. Like I moved most of my search traffic to perplexity. Really like it. Google's kind of started and stopped a whole bunch of stuff, but recently they're making noises like they're not going to roll over and play dead to perplexity. That's such an interesting company right now. And to watch their moods will be very, very interesting. It's a challenging time for them, but it looks like they're going to. They're not going to let Perplexity just hoover up a bunch of their users.
Shane Parrish
Hopefully not. We all want some competition here. I have a couple random questions. I'm curious what you've learned about making decisions that you think other people miss.
Brian Halligan
On my CEO journey for a long time, I kind of look for consensus. I think consensus is really the enemy of scale. And so I used to say, whenever we're making an important decision, there should be winners in the room and losers. We shouldn't find, like, that negotiated settlement that everyone's happy. Somebody should be unhappy. Three or four people should walk out unhappy, and one should walk out happy. And we're all. We're all going to be good with it. As you get bigger, this gravity pulls you towards consensus. And I think consensus is the enemy of greatness.
Shane Parrish
How do you fight that?
Brian Halligan
I write that on whiteboards. I talk about that inside of HubSpot. I try to make an example of that every time I'm in a room. I've written a bunch of blog articles about that wiki post about that. It won't point in Sonic HubSpot, we had a terrific COO I love, and he had a lot of great qualities. One of his qualities I didn't love was he was a consensus person. And we had a lot of conflict over that. And so we talked about that a lot. The management team talked about that a lot. But I sort of had this thing like, there's going to be winners and losers in every argument, and if no one walks out a little bit sore, we probably made the wrong decision.
Shane Parrish
So go deeper on that for a second, though. So put me in the room at one of these meetings where there's four people on one side, there's four people on the other side. How do we come to that decision? Is it the highest paid person in the room? Is it the person closest to the problem who actually makes that call?
Brian Halligan
Let's just say it's my call, which is rare. And two people in the room are saying black, and two people in the room are saying white. I think that the majority of CEOs are walking out of the room with the decisions gray.
Shane Parrish
Trying to please everybody.
Brian Halligan
Yeah. Try to thread the needle. And I think that's a problem. It creeps in more and more. The bigger you get, the worse that problem gets. And I always tried to walk out of the room. It's like we're going to pick Black or white, if you lose this decision, you might win the next one. Let's not get all pissed off about it. We'll all survive. And I think that's the right way to scale it.
Shane Parrish
Is there anything else you've learned about decision making that you're like, oh, I wish I knew this sooner?
Brian Halligan
I would say one thing I've learned about scaling a company, like, from the outside side went from company with an idea and two employees to, you know, it's worth $30 billion and 8,000 employees and a couple hundred thousand customers. It looks like a smooth graph from the outside, but I'll tell you what, it's a grind on the inside building HubSpot. It's very much two steps forward, one step back. Two steps forward, one step back. Two steps forward, one step back the whole whole way. And there was no silver bullets along the way. There was no one hired. That completely changed the game. No partnership, change the game. No customer, no investor. It was all kind of two step forward, one step back, two step, four, one step back. And the other thing I would say about the journey is kind of related to that. There was definitely wartime and peace time. When you're halfway through a two steps forward, it was peace time. When it's one step back, it was wartime. And I love wartime. I'm definitely a wartime CEO. I hate peacetime. I really need to sit on my hands and just let it go like, it's going great, leave it alone. And I have a hard time doing that. And I think certain CEOs are peacetime and certain CEOs are wartime. I'm very, very, very much a wartime person. Like Covid, wartime. We made so many changes during COVID I hated Covid and I hated the impact on society. But inside of Pubspot, that was a fun chapter.
Shane Parrish
What does wartime mean for you? Is that like, we're fighting for our very survival? Does it mean we can just move faster and sort of ignore some of the bureaucracy? What does it mean?
Brian Halligan
I think peace time is bottoms up and more consensus and wartime, more top down. And it's like, hey, it's wartime. I don't have time to build consensus on this. This is what I think we should do. We're going left. And I like that about wartime. And wartime is like, okay, I remember 2010. The economy was shaky back then. We were a very young company. Maybe it's 2009. And our retention statistics were horrible. Everyone was canceling. Our product wasn't good back then, and we lost every member of the thousand customers. We had in the beginning of the year, we lost like 700 of them. Like just horrible churn rate in 2009. And that was existential. And it was like, let's just stop the music and start over. Everything we're doing going forward has nothing to do with signing up new customers. Is like, how do we delight every new customer we have? Let's stop obsessing about how do we turn a prospect into a customer. Let's obsess about how do we turn a customer into a delighted customer. And so that was a crisis that really worked. We changed the culture of the company. We changed the center of gravity from prospects to customers. Never waste a good crisis. That was a really good crisis.
Shane Parrish
While you were building this, how did you manage? And I don't want to say balance, it's the wrong word, but it's the word everybody understands. How do you, how did you manage work, life, harmony or balance? Especially during the high pressure periods with young family.
Brian Halligan
I didn't. I did it very poorly.
Shane Parrish
What would you go back and tell your younger self now?
Brian Halligan
I'm really proud of it. I think my grandkids will be proud of it. And I think it took a big effort on my part. Pull it off. And if I said, oh man, I wish I just put in 40 hours a week back then I wouldn't be sitting on this podcast with you. We wouldn't have pulled it off. And I know that's not the popular answer. I'll probably get pilloried on Twitter for saying that. But I think that's reality of HubSpot. It was a full context for it.
Shane Parrish
I've noticed this thing and I think people don't like talking about it. But when you find exceptional people who've done exceptional things like yourself, they're not always the most well rounded people in every aspect of their life. And yet we sort of expect them to be right. It's like we love Warren Buffett, but we want him to also be a better family man. The weird thing is the minute Warren Buffett starts doing that, he's no longer somebody we're talking about as Warren Buffett. And so it goes back to those sort of strengths and weaknesses. And my hypothesis is that people at the tail end of the curve have incredible strengths and incredible weaknesses. And by trying to address those weaknesses, whether it's school, society, nudging people, we actually limit, we put a ceiling on the strengths that those people can actually deliver to the benefit of the world.
Brian Halligan
You'll probably Hillary on Twitter for saying that, but I agree with you on that. I will give. I'll give you an example. I've never been married. I want to get married. It's on my. It's actually on my to do list this year. I don't know it's gonna be this year. But I never did it. And every time I had a relationship like HubSpot came first and do I regret it? I don't know. I've had a really good life. I've really enjoyed the HubSpot run. I'm super proud of it. I think when I'm 85 and looking back on my life, I'll still be super proud of it. I think my grandkids will be proud of it. So yeah, I made some sacrifices. I'm okay with it.
Shane Parrish
We always end the podcast with the same question. I think you'll have a really good answer to this. What is success for you?
Brian Halligan
I think it's a really cheesy James Taylor song named the Secret of Life is Enjoying the Passage of Time. I think he's very right about that. And think about that post My accident I very much try to not do anything that I don't want to do or if I'm doing it, not to do it very long. And I try to live in the present and stay out of the past too much and stay out of the future too much. I think the Secret of Life is about how do you set your life up so you're really enjoying that passenger time.
Shane Parrish
That's a beautiful answer. Thank you so much for coming on the show, Brian.
Brian Halligan
Thank you sir.
Shane Parrish
Thanks for listening and learning with us. For a complete list of episodes, show notes, transcripts and more, go to FS Blog, Podcast or just Google the Knowledge Project. Recently I've started to record my reflections and thoughts about the interview. After the interview, I sit down, highlight the key moments that stood out for me, and I also talk about other connections to episodes and sort of what's got me pondering that I maybe haven't qu quite figured out. This is available to supporting members of the Knowledge Project. You can go to FS Blog membership, check out the show notes for a link and you can sign up today and my Reflections will just be available in your private podcast feed. You'll also skip all the ads at the front of the episode. The Farnum Street Blog is also where you can learn more about my new book, Clear Turning Ordinary Moments into Extraordinary Results. It's a transformative guide that hands you the tools to master your fate, sharpen your decision making, and set yourself up for unparalleled success. Learn more at FS Blog Clear until next time.
Summary of "Top Entrepreneur on Building a Multi-Billion Dollar Company | Brian Halligan #200"
The Knowledge Project with Shane Parrish features insightful conversations with thought leaders who share their hard-earned wisdom. In Episode #200, released on August 6, 2024, host Shane Parrish interviews Brian Halligan, co-founder and former CEO of HubSpot. This episode delves deep into Brian's entrepreneurial journey, leadership philosophies, hiring strategies, the evolution of inbound marketing, and personal reflections shaped by a life-threatening accident. Below is a comprehensive summary capturing all key discussions, insights, and conclusions from the conversation.
Brian Halligan reflects on his 17-year journey with HubSpot, outlining the various phases of scaling a company:
Early Stages (2 to 20 Employees): (03:14)
Brian played multiple roles, including customer development, product usage, and marketing. He admits, “I was a crappy coder,” highlighting the importance of recognizing and compensating for personal weaknesses.
Growth Phase (20 to 200 Employees): (15:32)
This phase was where Brian felt most in his element, rating himself as an "A." He enjoyed driving the company forward and managing the growing team.
Scaling Challenges (200 to 2000 Employees): (15:32)
Brian rated himself a "B" during this period, finding the work more challenging as the company expanded.
Large-Scale Operations (2000+ Employees): (15:32)
As HubSpot grew to 8,000 employees, Brian rated his performance as a "D," expressing a dislike for the complexities and frustrations of managing a vast organization.
Notable Quote:
"People have a season that they enjoy and they get good at it. I think that's very much the case." — Brian Halligan (16:24)
Brian shares a harrowing account of his snowmobile accident in Vermont, which led to severe injuries and a prolonged recovery:
The Accident: (03:14 - 04:39)
Brian describes losing control of his snowmobile, resulting in multiple broken bones and a belief that he wouldn’t survive. This incident marked the end of his tenure as CEO of HubSpot.
Life Reflections: (06:33 - 09:25)
During his time immobilized, Brian contemplated the brevity of life, leading him to "refactor" both his personal and professional lives. He emphasizes prioritizing family and personal well-being over relentless professional pursuits.
Notable Quote:
"Life can be very short, very short. You never know what will happen. And don't waste it." — Brian Halligan (06:33)
Brian discusses the critical importance of hiring individuals who complement his weaknesses rather than trying to excel in areas outside his expertise:
Identifying Weaknesses: (18:13)
Brian realized he was not a great product designer despite his initial conviction. Accepting this led him to hire experts in design, allowing him to focus on his strengths.
Feedback Mechanisms: (16:24)
Implementing a 360-degree feedback system helped Brian identify both his strengths and areas needing improvement. This honest feedback was pivotal in shaping his hiring and leadership decisions.
Notable Quote:
"I really looked at hiring the best I could in the areas where I was weak, rather than trying to become an expert at it." — Brian Halligan (20:46)
A significant portion of the conversation centers on the importance of cultivating and maintaining a strong company culture:
Defining Culture: (24:14)
Culture is described as "how people make decisions when you're not in the room." Brian emphasizes that a well-defined culture is essential for scaling a company effectively.
Implementing Culture Initiatives: (31:40)
HubSpot’s approach includes regular Net Promoter Surveys, transparent sharing of feedback, and treating culture as a "second product." This systematic approach ensures that culture evolves with the company’s growth.
Debating Culture as a Competitive Advantage: (36:42)
Brian and Shane debate whether culture is the sole sustainable advantage. Brian argues that while culture is crucial, other factors like operational advantages and network effects also play significant roles.
Notable Quote:
"Culture is how people make decisions when you're not in the room. Culture is how companies really scale." — Brian Halligan (24:14)
Brian shares how studying influential figures like Steve Jobs and Jerry Garcia influenced HubSpot’s strategies:
Steve Jobs’ Influence: (21:07)
Inspired by Jobs’ simplicity and focus, Brian applied similar principles to HubSpot, aiming to create integrated, user-friendly systems akin to the iPod’s innovation.
Jerry Garcia and Inbound Marketing: (38:21)
Brian likens Garcia’s marketing genius with the Grateful Dead to HubSpot’s inbound marketing strategies. He explains how the band’s direct-to-fan ticket sales and unique marketing methods were early forms of inbound marketing.
Notable Quote:
"They were the first inbound marketers to really nail that. They were the first real freemium model. They were the first viral marketers." — Brian Halligan (43:47)
Brian provides insights into how inbound marketing has transformed and its trajectory in the digital age:
Changes in Media Consumption: (44:14)
The shift from blogs to video content, podcasts, and social media platforms like TikTok and Instagram has altered inbound marketing dynamics.
Impact of AI and Search Engines: (46:34)
With advancements like ChatGPT, traditional search engine strategies are evolving. Brian anticipates a decline in organic website traffic through traditional means and emphasizes the need for robust branding and personalized user experiences.
Future Outlook: (47:28)
Despite challenges, Brian believes inbound marketing will make a comeback, driven by unique perspectives and authentic content amidst the rise of AI-generated content.
Notable Quote:
"Having a unique perspective and a unique personality is going to work. Something like your podcast will last the test of time." — Brian Halligan (47:28)
Brian shares his approach to decision-making in a growing organization:
Against Consensus: (51:45)
He believes consensus is the enemy of scale, advocating for decisions where there are clear winners and losers rather than diluted agreements that satisfy everyone.
Implementation: (52:19)
By openly communicating that not everyone will agree, Brian ensures that decisions are made swiftly and effectively, maintaining the company’s momentum.
Notable Quote:
"Whenever we're making an important decision, there should be winners in the room and losers." — Brian Halligan (51:45)
Towards the end of the episode, Brian reflects on his personal life and the definition of success:
Work-Life Integration: (56:34)
Admitting that he managed work and personal life poorly, Brian expresses contentment with the sacrifices made for HubSpot’s success and looks forward to personal milestones like marriage.
Defining Success: (58:59)
Brian cites James Taylor's song "The Secret of Life" to encapsulate his view:
"The Secret of Life is Enjoying the Passage of Time."
He emphasizes living in the present and setting up life to enjoy each moment.
Notable Quote:
"The Secret of Life is about how do you set your life up so you're really enjoying that passage time." — Brian Halligan (58:59)
Brian Halligan’s conversation with Shane Parrish offers a profound look into the lifecycle of building a multi-billion dollar company, the intricate balance of leadership and personal growth, and the evolving landscape of marketing in the digital age. From grappling with personal adversity to refining hiring practices and championing company culture, Brian’s insights provide valuable lessons for entrepreneurs and leaders striving for sustainable success.
Key Takeaways:
Embrace and Compensate for Personal Weaknesses: Focus on building a team that complements your strengths and covers your weaknesses.
Prioritize Company Culture: A well-defined and maintained culture is essential for scaling and decision-making.
Adapt Inbound Marketing Strategies: Stay ahead by leveraging unique content and authentic personal branding amidst evolving digital platforms.
Effective Decision-Making: Avoid consensus-driven decisions to maintain organizational momentum and scalability.
Define Personal Success: Balance professional achievements with personal fulfillment by living in the present and enjoying each moment.
Notable Quotes with Timestamps:
"Life can be very short, very short. You never know what will happen. And don't waste it." — Brian Halligan (06:33)
"I really looked at hiring the best I could in the areas where I was weak, rather than trying to become an expert at it." — Brian Halligan (20:46)
"Culture is how people make decisions when you're not in the room. Culture is how companies really scale." — Brian Halligan (24:14)
"They were the first inbound marketers to really nail that. They were the first real freemium model. They were the first viral marketers." — Brian Halligan (43:47)
"Whenever we're making an important decision, there should be winners in the room and losers." — Brian Halligan (51:45)
"The Secret of Life is about how do you set your life up so you're really enjoying that passage time." — Brian Halligan (58:59)
This episode serves as a treasure trove of entrepreneurial wisdom, offering actionable insights for building and leading successful organizations while maintaining personal well-being.