Why managers are useless

`2:29:27`

So if you just have a bunch of programmers running around, you're kind of response like it's work, it's intellectual work to have to deal with the the first principles of every problem that's going on. So managers like you can like relax, oh I'll be taken care of. But they then hire their own managers and it just multiplies and multiplies and multiplies. I would love it if some of the great companies would have in the United States, if there was like an extra side branch that we could always run, maybe physicists can come up how to split the simulation to where just all the managers are removed. Also just in that branch, just the PR and the comms people also. And even the lawyers, just the engineers and let's just see and then we merge it back. — I've essentially run that branch at 37signals for 20 years. And I've experimented with forking back on the other side. I've experimented with having a full-time lawyer on staff. I've experimented with having engineering managers. And I can tell you life is much better

`2:30:30`

at 50, 60 people when none of those individuals or none of those roles. It's never about the individuals. It's about the roles. None of those roles are in your organization fulltime. Occasionally you need a manager. Occasionally you need a lawyer. I can play the role of manager occasionally, fine. And then I can set it back down to zero. It's almost like a cloud surface. I wanna a manager service I can call on for seven hours this week and then I wanna take it down to zero for the next three months. — Yeah. I read. I don't know if this is still the case, that Basecamp is an LLC and doesn't have a CFO, like a full-time accountant. Was that upgrade? — So the funniest. These days, we do have a head of finance. We did not for the first 19 years of life, I think. We got away with basically just an accountant do our books in the same way you would do a small ice cream shop, except we would over time have done hundreds of millions of dollars in revenue. The scale seemed quirky. And at some point, you can also fall in love

`2:31:31`

with your own quirkiness to a degree that isn't actually healthy. And I've certainly done that over time and we should have had someone mount or count the beans a little more diligently, a little earlier. This was part of a blessing of just being wildly profitable and selling software that can have infinite margins basically that you kind of can get away with a bunch of stuff that you perhaps shouldn't. What partially taught me this lesson was when we realized we had not been collecting sales tax in different US states where we had Nexus. And it took us about two years and $5 million in settlements and cleanups to get out of that mess. And after that I went like, okay, fine, we can hire a finance person. And we now have a wonderful finance person, Ron, who actually ended up replacing something else. We used to have a full-time data analytics person who would do all sorts of insight mining for why are people signing up for this thing. We ran that for 10 years and realized, you know what? If I can have either a data analytics person or an accountant, I'm picking the accountant. — I love this so much on so many levels.