The CEO of Upwork Reveals the #1 Key to Success in Work & Life — Transcript
Full transcript
- 0:00As a leader, we have to start with a
- 0:02clear and shared narrative of what's the
- 0:05market and what's our situation in the
- 0:07market and what's the problem to be
- 0:08solved or the job to be done. If we
- 0:10don't know what problem we're solving or
- 0:11we don't know who we're solving it for,
- 0:12we can do all these other steps and they
- 0:14will not move the needle on our ultimate
- 0:16goals. If you've ever felt like your
- 0:18team is working harder than ever, but
- 0:20not really getting anywhere, it might
- 0:22not be an effort problem. It might be a
- 0:25clarity problem. Welcome to How Leaders
- 0:27Lead. I'm David Novc and every week I
- 0:29have conversations with the very best
- 0:31leaders in the world to help you become
- 0:33the best leader you can be. My guest
- 0:36today is Hayden Brown, the CEO of
- 0:38Upwork. Now, if you aren't familiar with
- 0:40Upwork, they help companies find and
- 0:43hire top freelance talent. And leading
- 0:45in that space, Hayden has real expertise
- 0:49on two topics every leader is talking
- 0:52about right now, remote work and AI.
- 0:56You'll hear her insights on both and
- 0:58they're terrific. But I also want you to
- 1:00listen to how Hayden creates clarity for
- 1:02her team. If you want to cut down on
- 1:04confusion and give your team more
- 1:06direction and confidence, you're in the
- 1:08right place. Here's my conversation with
- 1:10my good friend and soon to be yours,
- 1:12Hayden Brown.
- 1:18[Music]
- 1:19Now I understand that you have actually
- 1:22learned a lot about how to run your
- 1:24business by studying dating sites. You
- 1:27know tell me about that.
- 1:29>> You know a big function of what we do at
- 1:31Upwork is, you know, connecting
- 1:34businesses from the Fortune 100, you
- 1:36know, companies like Microsoft, Airbnb,
- 1:38Cloudflare, all the way down to your
- 1:40local mom and pop company. We connect
- 1:42them with the most in- demand talent in
- 1:44the world. And of course, that's a large
- 1:47part of matchmaking. That's really where
- 1:49we're kind of finding the exact match
- 1:50for not just the company, but the hiring
- 1:52manager, the project, the specific issue
- 1:54that they're trying to solve and going
- 1:56into our tremendous talent pool to find
- 1:58that person. So, there are a lot of
- 2:00analogies to dating sites and kind of
- 2:02matchmaking services generally. And
- 2:04certainly, we always try to pull from
- 2:05the best to figure out how we do that
- 2:06matching better and better every day for
- 2:08our customers.
- 2:09>> What do you think has been the biggest
- 2:10insights you pulled from the dating
- 2:12sites that you've transferred over? You
- 2:14know, I think one thing that makes
- 2:15dating sites an an interesting analogy
- 2:18for us is um you know, unlike e-commerce
- 2:20where someone can come into uh a website
- 2:24and kind of browse a bunch of products
- 2:26and then you know many people could
- 2:27order that same product, you know, they
- 2:29have thousands of that product on
- 2:30inventory. In the world of dating sites
- 2:32and the world of Upwork, every uh person
- 2:34is unique. There's no two people are the
- 2:36same. There's no two, you know, orders
- 2:39you could make of the same thing through
- 2:40our platform. And so we really look at
- 2:42how dating sites uh kind of bring
- 2:44forward the uniqueness, the specialness
- 2:47of every person and find those very
- 2:49specific attributes that become part of
- 2:51the matching algorithm to get the right
- 2:52person to that uh to that individual.
- 2:55>> Tell me about the origin of Upwork and
- 2:57and what it is today.
- 2:59We were founded about 20 years ago
- 3:02really through two very good childhood
- 3:05friends who grew up in Greece and one of
- 3:08them moved to the US and he really
- 3:10wanted to work with his good old friend
- 3:12from Greece who was still back in that
- 3:13country and yet he found in the early
- 3:162000s it was not easy to do this and in
- 3:19fact his employer was pushing back and
- 3:21saying well we don't know this person
- 3:22and how do we trust them and how do we
- 3:24know they're doing real work for us and
- 3:25that really led him and his friend to
- 3:28start OD odesk which was basically a way
- 3:30to connect remote talent together with a
- 3:32trusted kind of paradigm where there
- 3:34were things like screen captures hourly
- 3:37work guarantees on both sides and all
- 3:39the infrastructure to make remote work
- 3:41safe secure and appetizing for both
- 3:43businesses and talent so that was the
- 3:45early story of our business we've gone
- 3:47through a ton of chapters since then
- 3:49merged with our you know arch rival
- 3:50Elance and become Upwork in 2015 but
- 3:53really this is a business that's I think
- 3:55at the beginning of the next huge
- 3:57journey and I'm sure we'll talk about
- 3:58that But AI is changing everything to do
- 4:00with work and we are certainly at the
- 4:02forefront of that uh both our with our
- 4:04product and for our customers.
- 4:05>> Well, there probably isn't a company in
- 4:07the world that knows more about remote
- 4:08working and how to make it work than you
- 4:10and I can't wait to really get into that
- 4:12as we go through along. But I'm going to
- 4:13ask you lots of questions about how
- 4:15you're leading upward. But I'm going to
- 4:16take you back, you know, and what's a
- 4:18story from your your childhood that that
- 4:20shaped the kind of leader you are today?
- 4:23>> You know, I've been an entrepreneur
- 4:24since I was a really little kid. And the
- 4:27story there was I grew up in this small
- 4:30town in Massachusetts, a blueco collar
- 4:31community. Everyone knew everyone. And
- 4:34when I was 6 years old, my older brother
- 4:36was paralyzed from the neck down very
- 4:38suddenly. He's fine today, but he got
- 4:40this rare autoimmune disease called
- 4:42goneret syndrome and suddenly was in the
- 4:44hospital for six months. And there I
- 4:46was, this little kid loving and
- 4:47idolizing my brother and trying to
- 4:49figure out what can I do for him? How
- 4:51can I make his life better when he's in
- 4:52this situation? And I got this idea
- 4:55because he was a huge car nut that when
- 4:57he got out of the hospital, I wanted him
- 4:59to come home in a stretch limousine.
- 5:01Like this was the thing I wanted to do
- 5:03with his friends inside this big
- 5:04surprise, this big moment. And yet my
- 5:07allowance wasn't going to cover that.
- 5:08Like I had no way to fund that type of
- 5:10car rental. So, I got started collecting
- 5:13bottles and cans, turning them in to the
- 5:15recycling center, getting 5 cents each,
- 5:17and thousands of cans later, I had
- 5:19enough money to pay for the surprise
- 5:21limo trip for him home. But what I
- 5:24really got from that wasn't just like
- 5:25the joy of seeing him in that
- 5:28experience. I realized how powerful it
- 5:30was to have earned money as like a
- 5:32little kid, to be able to actually do
- 5:33something with it that really made
- 5:34someone else's life better. And that led
- 5:37me to go on and get a paper. I was
- 5:39probably the youngest in my town to do
- 5:40that, to start a small business called
- 5:42Hayden's House Cleaning. I went around
- 5:44the neighborhood doing chores for
- 5:45people. I went on and started a summer
- 5:47camp for local kids. Like all of these
- 5:48things were important to me, but the
- 5:50throughine was that early experience
- 5:53where I saw the good that I could do as
- 5:55an entrepreneur and seeing my parents
- 5:57who were nonprofit people and were
- 5:59working in communities around the world.
- 6:01We moved to Nepal when I was 11. We
- 6:03lived in cotandeu and they taught me the
- 6:05importance of not just doing work but
- 6:07doing work with a purpose doing work
- 6:09that really has a positive impact on
- 6:11people's lives which is what they
- 6:12dedicated their lives to and so that
- 6:15whole experience led me to want to be in
- 6:17business and create new things create
- 6:19new products but do it in a way that
- 6:20really tied back to personal impact
- 6:23human impact and that's really one of
- 6:25the big reasons I'm at Upwork today.
- 6:26>> Yeah that's fantastic story and you
- 6:29lived in Nepal.
- 6:31What what was the the biggest thing you
- 6:34took out of that experience?
- 6:36>> You know, about a year after we had
- 6:39moved to Nepal, I remember my first trip
- 6:41back to the US. So, I was 12 years old.
- 6:43I got off the airplane. Within a few
- 6:45hours, I found myself in a US
- 6:48supermarket, you know, probably a stop
- 6:49and shop in Massachusetts. And I'll
- 6:52never forget the kind of wonder that I
- 6:54had walking down the aisles and seeing
- 6:5712 brands of toothpaste, you know, 55
- 6:59stereotypes, like all of this abundance
- 7:02that previously I had just taken for
- 7:04granted growing up in the US. But now
- 7:06having been overseas for a while and
- 7:07seeing obviously such a different level
- 7:09of access and opportunity in common, I
- 7:13realized as Americans, we are so
- 7:15privileged and we have so much access
- 7:17and and things that we just take for
- 7:18granted the rest of the world would, you
- 7:20know, literally move night and day and
- 7:22like do anything to access. So that was
- 7:24a huge wakeup call for me really seeing
- 7:26that disparity and and understanding
- 7:28firsthand the privilege of being an
- 7:30American. It felt like I I was born with
- 7:31a lottery ticket because of that and
- 7:33starting to figure out how can I help
- 7:35others in the world have access to this
- 7:37incredible opportunity that we have here
- 7:38in the US.
- 7:39>> That's that's uh that's so great. You
- 7:40know, people always ask me what my
- 7:42biggest break is and I always tell them
- 7:43that being born in the United States of
- 7:45America and the son of Charles and Gene
- 7:47Novak. It sounds like you you have the
- 7:49same same kind of belief that I have on
- 7:52that.
- 7:53And you know, you you you go to
- 7:54Princeton and you graduate there, great
- 7:58school, and then you start up your
- 8:00career at McKenzie, you know, when you
- 8:02think about leadership and and and and
- 8:05making an impact. What did you learn by
- 8:07being a consultant?
- 8:09>> You know, I'll share you I'll share this
- 8:10lesson with you. I don't I don't know
- 8:12how how appealing it will be to people,
- 8:13but actually it was such an incredible
- 8:15experience to be 21 22 years old and
- 8:19asked to go in and work with some of the
- 8:21biggest companies in the world on core
- 8:23strategic problems that they were
- 8:25struggling with that they did not have
- 8:27answers to. And that was exactly why
- 8:28they were we were there as a firm and
- 8:30why I was being asked to do analysis or
- 8:32research or prepare a presentation that
- 8:34summarized various things. And what I
- 8:37really saw from that is it demystified
- 8:40business and business leadership for me.
- 8:42It made me see that even the people at
- 8:44the top, the most admired and successful
- 8:46people in the world, they too have
- 8:48questions. There's things where they
- 8:49need help. There's things that they
- 8:50don't understand or don't know how to do
- 8:51and could benefit even from someone
- 8:54straight out of college coming in and
- 8:55providing some information or
- 8:56perspective that they needed. So I think
- 8:59for me that really opened up this idea
- 9:01that like anyone can be successful in
- 9:03business. we can all have a shot at it
- 9:05and there's nothing especially unique
- 9:07about people who are already very
- 9:08successful like they got there through a
- 9:10hard le lessons learned but also are
- 9:12still learning every day and that that
- 9:14journey is never done
- 9:15>> and you you know were in this huge
- 9:17company Microsoft for for a while uh
- 9:19what did you what did you glean from
- 9:21that that experience that that you've
- 9:23taken with you to to Upwork
- 9:26>> culture is everything you know I was at
- 9:28Microsoft at a time when you know there
- 9:30was that famous cartoon of like the
- 9:32different divisions pointing guns at
- 9:33each other because it was just it was
- 9:35very fraught internally and there was a
- 9:37lot of internal competition and yet I
- 9:39was privileged enough to join a team
- 9:41that was nothing like that. We had this
- 9:44small team that was kind of this ninja
- 9:46force first working on M&A and strategy
- 9:49for the online business which was this
- 9:51new thing at the time and then going on
- 9:53and working on the biggest corporate
- 9:54strategy deals in the company's history
- 9:56including things like the 40 plus
- 9:58billion dollar acquisition bid on Yahoo
- 10:00uh the investment in Facebook etc. And I
- 10:03saw that the culture of our team which
- 10:05was so different than the broader
- 10:07culture of Microsoft was really a huge
- 10:08motivator for me and a reason I stayed
- 10:10and did that work and just loved it and
- 10:12grew so much. Whereas once I realized I
- 10:14wanted to go into product management and
- 10:16do something else with my career, I knew
- 10:18going into the rest of Microsoft at that
- 10:20time in that culture was just not
- 10:21appealing at all. And so I I've carried
- 10:23that with me in thinking about how do I
- 10:25build at Upwork the right culture that
- 10:27really attracts and retains that gets
- 10:29the best out of people and is not
- 10:30political is not you know discordant
- 10:32internally but really has us all moving
- 10:34in the same direction.
- 10:35>> And when you think about culture at
- 10:37Upwork what do you think is the single
- 10:39most important
- 10:41behavior that you're really trying to
- 10:42drive that'll get results?
- 10:44>> We have a value called build and break
- 10:46fearlessly. And we have a number of
- 10:49company values. We have we have uh five
- 10:51total values, but this one is the one
- 10:54that I think really animates our culture
- 10:56and our reason of being the most because
- 10:58we're a company that's built to break
- 11:00the status quo to create possibilities
- 11:03for people and businesses that did not
- 11:05exist before and would not exist without
- 11:06our platform. So, we need to be fearless
- 11:09every day examining what needs to change
- 11:12not just in the ecosystem outside and
- 11:14where we're trying to influence, you
- 11:15know, stakeholders, customers, etc., But
- 11:17how do we need to build and break our
- 11:19own culture or our own ways of working
- 11:21or our own practices to actually achieve
- 11:23these goals for our customers? So this
- 11:26value for us cuts very deep and shows up
- 11:28in all aspects of our work and is I
- 11:30think the thing that keeps us innovating
- 11:32at the edge of kind of the comfort zone
- 11:34and kind of pioneering our space in a
- 11:36way we could not do if we weren't so
- 11:37anchored on this value.
- 11:39>> When you're talking to your team about
- 11:40the importance of break and build, what
- 11:42what's what's your favorite story you
- 11:44tell?
- 11:45>> There's so many. I mean, we just had a
- 11:47huge announcement on on Tuesday, which
- 11:50was around this new business unit and a
- 11:52brand we launched called Lifted, and we
- 11:55created this business through two
- 11:57acquisitions plus our own uh existing
- 12:00enterprise business put together in this
- 12:02new structure. And I will say this is
- 12:04probably the biggest build and break
- 12:05fearlessly moment that we've had because
- 12:07this required us not just to uh do
- 12:10acquisitions or change our product or
- 12:11change our sales strategy. It's it
- 12:13actually caused us to restructure our
- 12:16business and create this um unit and and
- 12:19kind of completely change our operating
- 12:21model in order to be able to serve our
- 12:23customers the way we knew they needed to
- 12:25be served. And so this one I think is a
- 12:27great example of how we went deep inside
- 12:29and not just outside in terms of how we
- 12:30apply this value and really did the hard
- 12:32work to set us up for this next next
- 12:34great chapter.
- 12:35>> And as I understand it, when you when
- 12:37you joined Upwork, you were the head of
- 12:40uh product. you know what what does head
- 12:43of product mean in a in a in a company
- 12:45like Upwork? What did you do?
- 12:47>> Yeah. So, I joined the company in 2011
- 12:49actually as a product manager. I found
- 12:51uh the head of product at the time was
- 12:53willing to take that bet on me
- 12:55transitioning from strategy and M&A and
- 12:57this other part of my career into
- 12:58actually being a builder. And uh then I
- 13:01grew up to be the head of product and
- 13:02then ran marketing uh before becoming
- 13:04CEO five and a half years ago. But what
- 13:06I saw with being in product was this was
- 13:09such an amazing throughine between
- 13:11really understanding customer needs very
- 13:13deeply and then being analytical and
- 13:15focused about how to action those needs
- 13:17and also being very creative in terms of
- 13:19solutioning design you know product
- 13:21development. Uh and then of course
- 13:24closing that feedback loop by seeing
- 13:26what happens when you ship those
- 13:27products, how customers engage with it,
- 13:29how they respond and then using that of
- 13:31course to come back to the beginning of
- 13:32the process all over again. So, I loved
- 13:34how I got to be so front and center with
- 13:37customers, understanding their problems,
- 13:38and then applying them directly into
- 13:39changes in our business to address those
- 13:41problems.
- 13:42>> You know, one of the things that I think
- 13:45is the case, and you can correct me if
- 13:46I'm wrong, but you you you have a big
- 13:48perception of being this company that
- 13:51hires freelancers for creative projects,
- 13:53but yet you've expanded over time to to
- 13:57human resources, IT, finance. H how
- 14:01challenging was that for you to take
- 14:03people with you to to broaden your your
- 14:06offerings?
- 14:07>> This happened really naturally for our
- 14:09platform actually. We started with a
- 14:12really strong um foothold in technical
- 14:14work. So we had a lot of Eastern
- 14:16European talent and others around the
- 14:18world doing web and mobile software and
- 14:20application design all of that work kind
- 14:22of in the early 2000s. And then you're
- 14:24right, we also had this very stronghold
- 14:26uh big stronghold with design and
- 14:28creative work. But what we saw is
- 14:30customers would come in, you know,
- 14:31they'd have something in mind like build
- 14:33a website, but that was not something
- 14:34that just a designer or a developer
- 14:37could do in isolation. They needed
- 14:38design, development, marketing, you
- 14:40know, they needed the full spectrum of
- 14:42skills to execute these bigger projects.
- 14:44So very naturally, they started looking
- 14:46for and finding talent on our platform
- 14:48that drove that flywheel where now we
- 14:50have over 130 categories of work,
- 14:52250,000 AI specialists globally. I mean,
- 14:54and that the composition of our
- 14:56marketplace continues to shape shift
- 14:58based on client demands, which is an
- 15:00amazing aspect of our marketplace.
- 15:02>> And you know, here you are now, you're
- 15:04the leader in the industry, but you have
- 15:06companies like Fiverr and others who are
- 15:09trying to to do the exact same thing or
- 15:11or or even better, you know, how do you
- 15:14think about competition? You know, we
- 15:16stay focused on solving our own
- 15:19customers problems. And of course, we
- 15:22look at what others in the marketplace
- 15:23in the ecosystem are doing, but we have
- 15:26such a unique solution that actually no
- 15:28one has replicated. There's no one that
- 15:30does what we do. You know, our we do
- 15:31complex large project work. We have deep
- 15:34relationships being fostered between
- 15:36clients and talent on our marketplace.
- 15:38This is not small transactional stuff or
- 15:40throw it over the wall to somebody
- 15:42talented. So, you know, our distinct
- 15:44value proposition and kind of market
- 15:46positioning is something that we see as
- 15:47a huge asset that we can continue to
- 15:49expand on with things like our AI
- 15:51features and what we're doing there with
- 15:52things like this enterprise expansion,
- 15:54what we're doing there. And we see
- 15:56ourselves bringing to the market
- 15:58solutions that no one else has and
- 16:00frankly are really disrupting some of
- 16:01the legacy players who've been around
- 16:03for a long time but aren't tech enabled,
- 16:05don't have marketplaces, you know, don't
- 16:06have the set of talent and other
- 16:08capabilities that we have.
- 16:09>> Yeah. And you know, so h how do you how
- 16:11do you stay in touch with the voice of
- 16:13the customer and and and
- 16:16balance giving them what they're telling
- 16:18you they need versus versus giving them
- 16:20sometimes things that they don't even
- 16:22know that they need?
- 16:24>> It's a great question. I mean, we talk
- 16:26to customers every single day. I mean,
- 16:28we're on the phone, on Zoom, you know,
- 16:30in person. I do an AI uh customer
- 16:33council every month where I gather
- 16:35customers who are focused on AI and are
- 16:37using our platform for AI and talk to
- 16:39them about what's current and on on
- 16:40their minds. So, we have a ton of these
- 16:42channels for getting that feedback. But
- 16:45you're right, David. You know, one of
- 16:46the things I think is critical about a
- 16:48product manager and about a product
- 16:50company is we can't just build what
- 16:52we're asked to build. We have to go
- 16:54beyond that and have a bigger vision for
- 16:56where we're headed that customers may
- 16:57not even, you know, fully grapple with
- 16:59yet. they might not may not even be
- 17:00there yet, but we've got to be building
- 17:01that vision and making it real for them.
- 17:04So, we also do a lot internally in terms
- 17:06of u putting stakes in the ground around
- 17:08how we see the market evolving in the
- 17:09next few years where things like AI will
- 17:12transform our opportunity, visioning
- 17:14that out, and then building a roadmap
- 17:16that is giving incremental wins to
- 17:18customers along the way. So, they're
- 17:19seeing those benefits. We're not waiting
- 17:21until that big reveal, but we're
- 17:22building towards something that once we
- 17:24get there, everyone will look back and
- 17:25go, "This is totally different. This is
- 17:27totally transformational." Yeah, I want
- 17:29to get into how you're leading in the
- 17:30world of AI because there are very few
- 17:33people doing it as well as you guys are
- 17:35doing it. And uh but you spent almost 10
- 17:38years at Upwork before becoming the CEO.
- 17:42You know, not many rise to that position
- 17:44of CEO, being at the top of the
- 17:46organization.
- 17:48If you had to pick one thing that really
- 17:50was the key driver of your own personal
- 17:52success as a leader, what do you think
- 17:55it would be?
- 17:57I think clarity is probably the most
- 17:59important thing if I look back and at
- 18:02every step of the way I really focused
- 18:04on bringing clarity to hard problems
- 18:06that we didn't know how to solve or or
- 18:09you know hadn't resolved yet. Also
- 18:11bringing clarity to what's the actual
- 18:13situation in the business because as a
- 18:15leader we have to start with a clear and
- 18:18shared narrative of what's the market
- 18:21and what's our situation in the market
- 18:22and what's the problem to be solved or
- 18:24the job to be done. Then we have to
- 18:25articulate that vision of what could it
- 18:28be? What are we driving towards? Where
- 18:29are we trying to get to? And then the
- 18:30third thing is executing that plan,
- 18:32building and mobilizing the plan and the
- 18:34people to get there. So for me, it's
- 18:37always started with clarity. If we don't
- 18:38know what problem we're solving or we
- 18:39don't know who we're solving it for, we
- 18:41can do all these other steps and they
- 18:42will not move the needle on our ultimate
- 18:44goals. And you know what you're really
- 18:46talking about is the first
- 18:47responsibility of leadership which is to
- 18:49define reality the reality of the the
- 18:51the workplace and then create these
- 18:53innovative solutions. Can you share an
- 18:56example of where you provided clarity on
- 18:59a really complex problem that that that
- 19:01really helped the trajectory of your of
- 19:03your company?
- 19:04So in January of 2023,
- 19:07you know, basically two months after
- 19:09chat GPT had had started to land on the
- 19:11scene, we sat as a leadership team and
- 19:14had a discussion about what did AI mean
- 19:16for our business. So you know, if we
- 19:18remember at that time, two months in,
- 19:20tons of open questions, plenty of
- 19:22healthy skepticism. There was a raging
- 19:24debate within our own team of should we
- 19:27try to act on these uh kind of new
- 19:29technologies? Should we be incorporating
- 19:30them into the roadmap that we just built
- 19:32for that year? You know, we just
- 19:34finished that whole planning process or
- 19:36do we wait and see? And there were
- 19:37advocates on both sides. That was a
- 19:39moment where I felt it was critical to
- 19:41step in and really have a strong voice
- 19:43and clarity around my view, which was
- 19:46this technology will change everything.
- 19:49We have to be a first mover, not a last
- 19:51mover here. We can't wait to see what
- 19:53others are doing. And the only way we're
- 19:55going to be successful is if we get our
- 19:56hands dirty and start to learn by doing.
- 19:58Now, at the same time, we couldn't just
- 19:59throw out our whole road map and start
- 20:01over again because we had a ton of goals
- 20:03to achieve. We knew a bunch of problems
- 20:04we needed to solve with existing
- 20:06capabilities. So what we did was isolate
- 20:08a small team to basically go off-site
- 20:11essentially in our in our kind of
- 20:12virtual mode and just focus on the
- 20:15question how would we build Upwork today
- 20:18and what would it look like if we built
- 20:19it premised on an AI foundation and that
- 20:23work and that team came back with some
- 20:24incredible insights huge inspirations
- 20:27for us from a vision standpoint in terms
- 20:28of putting stakes in the ground of where
- 20:29we were going in the medium term and
- 20:32then we gradually pulled pieces of that
- 20:34into the road map and started to build
- 20:36kind of chunks of that idea as part of
- 20:38our our AI strategy. But that was a
- 20:40defining moment for us in terms of
- 20:41making that pivot and really uh
- 20:43committing to something that at the
- 20:44time, you know, there was still a lot of
- 20:45question marks about.
- 20:47>> Yeah. You took this big swing to to
- 20:50basically what you guys describe, which
- 20:51I love this is refound
- 20:54Upwork and and as an AI company when
- 20:58when others others hesitated,
- 21:02how did you get the personal courage to
- 21:04make that call? I think I faced a lot of
- 21:06tests over the many years not just
- 21:08leading this business but also just you
- 21:10know rising up through a number of roles
- 21:12and uh there was one formative
- 21:14experience for sure that happened you
- 21:16know during the really when the outbreak
- 21:19of the Ukraine war started in February
- 21:21of 2022 where I think for me you know
- 21:24that was that was actually for our
- 21:25business a significant crisis we had 10
- 21:27to 12% of our talent globally in the war
- 21:30torn region we had 12% of our own team
- 21:33internally that we work with also in
- 21:35that region. So we had internal
- 21:37exposure, we had customer exposure, our
- 21:39revenue was at risk like all of these
- 21:41things and most importantly I was faced
- 21:43with the ethical question to some extent
- 21:46of do we continue to operate in Russia
- 21:48and Bellarus or not and there were
- 21:51advocates from our customers on both
- 21:52sides, advocates internally on both
- 21:54sides. Ultimately, we were the first
- 21:57company in our space that made the
- 21:59decision to suspend operations in Russia
- 22:00and Barus. And that was an agonizing
- 22:02decision. Through that, I think I really
- 22:05learned and felt that adage that it's
- 22:07lonely at the top because there was no
- 22:09one who could tell me with any
- 22:11intelligence like what really needed to
- 22:12happen. And only I had the information
- 22:14perspective to make that really tough
- 22:16decision for our customers who were
- 22:17directly impacted. You know, our
- 22:19platform is a lifeline for so many of
- 22:21them. And so turning it off in a certain
- 22:23market is extremely risky and goes
- 22:25against kind of our value system. At the
- 22:28same time, we knew we couldn't operate
- 22:29and deliver our brand value and our our
- 22:31purpose in these markets given sanctions
- 22:33and changing conditions on the ground
- 22:35that just made it untenable. So this was
- 22:37a very difficult choice. But I think
- 22:39going through that and realizing the
- 22:40full responsibility that I had to our
- 22:43customers and making that decision with
- 22:45clarity early on so that they could all
- 22:48make their own decisions going from
- 22:49there and we could continue to operate
- 22:50effectively as a team was essential. So
- 22:53I think it's been moments like those
- 22:54David that really, you know, kind of
- 22:56tested us and our leadership and our
- 22:58cultural fabric and me in terms of
- 23:00making a bold and clear decision early.
- 23:02And I've always seen that those types of
- 23:05uh decision-making moments play out
- 23:06better when you can be clear and move
- 23:08fast and make a good decision versus
- 23:10wait and wait for more information, etc.
- 23:13Hey everyone, it's Kula from How Leaders
- 23:15Lead. And if you've watched our podcast
- 23:17for any number of episodes, you probably
- 23:19know that a common theme from all of the
- 23:21great leaders we interview is that they
- 23:23are active learners. They had this
- 23:25commitment to continuing to learn and
- 23:27grow so that they don't stay stagnant
- 23:29and so that they continue to see success
- 23:31in their leadership and in their life.
- 23:34This theme of active learning is so
- 23:35important and it's what David's latest
- 23:38book, How Leaders Learn, is all about.
- 23:40It's all about helping you develop that
- 23:42skill of active learning so that you too
- 23:44can continue to see success in your
- 23:46leadership and in your life. The book is
- 23:48really entertaining. It pulls stories
- 23:50from some of our greatest podcast guests
- 23:52and pairs those stories with insights
- 23:55that you can incorporate into your
- 23:56leadership and into your life right
- 23:58away. Grab How Leaders Learn on Amazon
- 24:01or wherever books are sold. And I think
- 24:03you're really going to love it. You feel
- 24:04David's personality through the pages
- 24:06and through his storytelling. And it's a
- 24:08really powerful way to level up your
- 24:10leadership.
- 24:11You know AI is something every leader is
- 24:13really struggling with right now or
- 24:15trying to get better making a core
- 24:16competence for themselves and for their
- 24:18their organization. What are you
- 24:20personally doing to to you know up your
- 24:25game in the world of AI? How how have
- 24:27you gone about learning about it so that
- 24:29you can lead?
- 24:30>> I spent a lot of time myself just using
- 24:33these different tools. You know I'm I'm
- 24:34a big chat chat GPT user. I experiment
- 24:37with Gemini a lot. But I haven't had as
- 24:38much success with that. And I I look at
- 24:41and test out um kind of category
- 24:44specific tools. So I'm not a developer,
- 24:45but I will watch tons of videos of how
- 24:48people are using tools like cursor
- 24:50vzero. Of course, I talk to our own team
- 24:52all the time about this because we are
- 24:53using those tools internally, but as
- 24:55things come out, I'm constantly kind of
- 24:57reading, experimenting, watching, and
- 24:59participating in keeping my own AI
- 25:01skills sharp because I have to roll that
- 25:03model out for my team. you know, no one
- 25:04in my company is going to believe that
- 25:06I'm serious about AI unless I'm showing
- 25:08up using these tools, pushing on them
- 25:10where they're not using the tools, etc.
- 25:12Of course, we also have some
- 25:13programmatic things in place. We started
- 25:15an AI effication program where we have a
- 25:17bunch of initiatives that are really
- 25:18focused on, you know, targeting and
- 25:20unlocking this uh this value, but
- 25:23personally, I feel I need to champion
- 25:24this both by doing and showing up with
- 25:26our teams to really advocate for our AI
- 25:28adoption. Has it been a challenge for
- 25:31you to take people with you in the
- 25:32company to get behind this movement or
- 25:35has it been something that people have
- 25:36easily gravitated to because you're
- 25:38you're we're obviously changing old
- 25:40habits by getting getting used to this.
- 25:42>> Totally. And and we've seen everything
- 25:44internally. You know, we've we always
- 25:45had kind of this uh cohort of early
- 25:48adopters who were, you know, leaning in,
- 25:50advocating. We've bought two AI
- 25:52companies in the last two years. So
- 25:54that's brought in a lot of like super
- 25:56forward-leaning AI talent, including our
- 25:58head of AI who came in from one of those
- 26:00acquisitions. But you're right, there's
- 26:01also a long tale of other people who've
- 26:03been worried or skeptical or feel like
- 26:05maybe they don't have permission to use
- 26:07these tools. So we make it a constant
- 26:10habit. Every week we're talking in our
- 26:11we have a weekly kind of mini all hands
- 26:13meeting. We're talking about and
- 26:15showcasing how people are internally are
- 26:17using these tools. We've created
- 26:19workshops and webinars and now really
- 26:21communicated to everyone that the
- 26:23expectation is they are using these
- 26:24tools. So it has taken you know in some
- 26:26places kind of the snowball needed to
- 26:28start rolling before speeding up but now
- 26:30it feels like it's moving really fast in
- 26:32terms of executing uh on this like
- 26:34opportunity and getting everyone in the
- 26:36company involved in it.
- 26:37>> How important has it been for you to
- 26:39make it clear to everybody that this is
- 26:41a this is a bus everybody's got to get
- 26:43on?
- 26:43>> It's my top priority. It has been so
- 26:46important because you're right, there's
- 26:47skepticism, there's fear, people worry
- 26:50even in our company about their jobs
- 26:51being replaced by AI. I mean, this is a
- 26:53widespread phenomenon. So, I have had to
- 26:56be very clear and and it's one of those
- 26:58things like repeat, repeat, repeat until
- 26:59people are sick of hearing it. And I'm
- 27:01sick of hearing myself say it, but
- 27:02repeat what our goals are and really um
- 27:05reassure people as well as push them and
- 27:07challenge them in terms of where we're
- 27:08going going. And this is, I think,
- 27:10essential for every leader. It's not
- 27:11going to happen in the business without
- 27:12each of us really leaning in and driving
- 27:14this change.
- 27:15>> You know, you're obviously a leader who
- 27:17can clarify and you've done that many,
- 27:19many times. You're a great communicator.
- 27:22Uh, and you have these obvious skills
- 27:25and you're at the top of an
- 27:27organization, which I think is fantastic
- 27:29and you're a great example for my
- 27:31daughter and and so many others. Uh, did
- 27:34you ever find being a female really
- 27:36inhibited your ability to to take on
- 27:40opportunities or even get opportunities?
- 27:42And if so, how did you work through it?
- 27:45>> I used to be very naive on this topic.
- 27:47When I was 22 at McKenzie or Microsoft,
- 27:49I was thinking it doesn't matter that
- 27:51I'm a woman. Like, that's not going to
- 27:52hold me back. No one's going to penalize
- 27:54me for that. And of course, in the last
- 27:5620 years, I've seen tons of instances
- 27:58where I'm underestimated. I'm looked
- 28:00over. uh I mansplain to constantly just
- 28:04because you know people think oh she
- 28:06can't know what she's doing or she can't
- 28:07take this on. So of course I've
- 28:09experienced that throughout my career. I
- 28:11think the thing that has been you know
- 28:14really interesting as the CEO I've
- 28:16really realized that in our culture uh
- 28:19there's kind of two types of women
- 28:20leaders who are stereotyped. There's
- 28:22kind of the mom who's like soft and
- 28:24fuzzy but maybe like a little clueless
- 28:25or can't make those hard decisions. And
- 28:28then there's I'll call her the jerk, you
- 28:30know, the person who's like
- 28:31cold-hearted, like doesn't care, like
- 28:33you know, just breaking glass
- 28:34everywhere. And I am neither of those
- 28:37things. I bring a lot of warmth and love
- 28:40and caring that's genuine for my team
- 28:41and our customers. I'm also hard driving
- 28:44and decisive and bold and analytical.
- 28:47And people don't know what to do with
- 28:48that. I think they often can only kind
- 28:50of look for or see one, not both of
- 28:53those things at best. So, it's become
- 28:56clear to me that I need to do a lot to
- 28:58communicate, as you mentioned, and
- 28:59really show up and try to educate my
- 29:02team and our stakeholders in terms of
- 29:03who I am and what I stand for because
- 29:05the stereotypes that people really fall
- 29:07into, especially for women leaders, just
- 29:08don't apply.
- 29:09>> What specific advice would you give to
- 29:12to a female that maybe you wouldn't give
- 29:14to to a male that that will that could
- 29:16help them, you know, climb the ladder?
- 29:19Unfortunately, a lot of women who are so
- 29:22capable and the the studies have shown
- 29:24this hold themselves back from that next
- 29:26step because they feel like h they need
- 29:29to do a little more, you know, prove
- 29:30themselves a little more or learn a
- 29:32little more or go do that other job
- 29:33before they do the job they want to do.
- 29:35And a piece of advice I give to a lot of
- 29:37folks that that come to me and and we
- 29:39chat is if you're thinking about going
- 29:41doing that thing, don't do the three
- 29:43things first. Like go do that thing now.
- 29:45You're ready. You're capable. Go do it.
- 29:47That's what that's what a lot of men do.
- 29:49They don't wait until, you know, they
- 29:50have that perfect profile or capability.
- 29:52And I think that's something that as
- 29:53women, we can constantly push ourselves
- 29:55on because our culture doesn't
- 29:56necessarily foster that in us.
- 29:58>> Yeah, I I agree. And and, you know, it's
- 30:00it's great to see that that you're
- 30:02you're leading the way and and showing
- 30:04people that it can be done in the very
- 30:07best of way. So, congratulations on
- 30:08that. And, you know, uh, your company
- 30:12provides a great service to to your your
- 30:15customers. And I was just curious, you
- 30:17know, what advice can you give on on how
- 30:19to balance between full-time employees
- 30:22and freelancers?
- 30:24And maybe you could use Upwork as as an
- 30:27example.
- 30:28>> We have about three4ers of our workforce
- 30:31today is freelancers. And that's been
- 30:33true basically since we were born as a
- 30:36as a small startup. We've always built
- 30:37our workforce as hybrid. And what we see
- 30:41today in the in the environment more
- 30:42broadly is a shift where more and more
- 30:45companies are looking critically at
- 30:47their full-time employee staff and
- 30:50realizing the limitations of what that
- 30:52staff can do for them. Often those
- 30:54people on on their in their current
- 30:55payroll don't know how to use AI tools,
- 30:57aren't maybe moving fast enough up the
- 30:58learning curve, uh don't have other
- 31:00critical skills as these businesses are
- 31:02moving in a very dynamic environment. So
- 31:04that trend is causing more companies to
- 31:06have a smaller core FTE group and a
- 31:10larger group of contingent freelance and
- 31:12kind of thirdparty vendors that they
- 31:14work with. And that I think is an
- 31:15enduring shift we're going to keep
- 31:16seeing more of. So for every company I
- 31:19think the the key is moving from a
- 31:21mindset of I you know in the past like
- 31:24most leaders have thought like oh I hire
- 31:26or I do work with the unit of the FTE
- 31:28that's like the unit of measurement like
- 31:29I need to add these FTEEs or subtract
- 31:31these FTEs. That's how work is
- 31:33comprised. The shift for leaders is to
- 31:35say these aren't FTE units. Now it's
- 31:37skills or projects or efforts. And once
- 31:40we break down the work to be more clear
- 31:42about what those boundaries and goals
- 31:44are, we actually may not need a big team
- 31:45of 10 FDs. Maybe we could have four or
- 31:47five specialists who really focus on
- 31:49that project and then we keep going with
- 31:51them or disband it based on what we
- 31:52find. And so it's a it's a different
- 31:54mindset around kind of what the unit of
- 31:56work is, how you define and scope the
- 31:58work. And then of course going to this
- 31:59tremendous pool of freelancers which is
- 32:01a $ 1.3 trillion economy in the US alone
- 32:04to find that skilled talent that you
- 32:06probably don't have to be moving fast
- 32:08enough and ag most agile you know in
- 32:11this current environment
- 32:12>> and how do you go about defining the
- 32:14scope of a job so that you can decide
- 32:17okay it's a full-time employee or it's a
- 32:20freelancer I mean is there do you have a
- 32:22process that you use to get at that?
- 32:24>> We do. I mean we start with really
- 32:26what's the goal here and how what's the
- 32:28time frame in which we need to achieve
- 32:30the goal and is this something that's
- 32:31going to endure beyond that or not. We
- 32:34also look at aspects of course that are
- 32:35around kind of compliance and how much
- 32:38control and direction do we have to give
- 32:40to this work or is it more kind of
- 32:42autonomous and we can share context and
- 32:43then have experts go off and do some of
- 32:45this work for them. So these are two of
- 32:47the factors that we look at in figuring
- 32:49out you know can we do this uh with with
- 32:52freelance talent but for us David
- 32:54basically every question it kind of
- 32:55starts with the premise like why can't
- 32:57you do it with freelance talent like
- 32:58that's where we always start is like
- 33:00this should be something we can do with
- 33:01a flexible team and if we really push
- 33:04ourselves to say in places where people
- 33:05want more headcount like is that
- 33:06necessary and and they really have a
- 33:08high bar to justify in order to make
- 33:10that happen. That makes sense. And and
- 33:12as I said at the top of the show, you
- 33:14know, you've been leading in this remote
- 33:17work environment before people even
- 33:19talked about remote work environments
- 33:21and you've been doing this a long time
- 33:23and it's now the new normal uh for for
- 33:26for every company. Uh what advice would
- 33:28you give others on on how to navigate
- 33:31this? Well, you know, how do you really
- 33:33be a company that knows how to to lead a
- 33:37remote remote workforce? The first thing
- 33:40is I think too often people mistake a
- 33:43remote first a remote forward workforce
- 33:45with we don't get together in person
- 33:48when in fact our model has always been a
- 33:50combination of yes lots of fully remote
- 33:52team members lots of flexibility in
- 33:54terms of when where and how people work
- 33:56but we still have strong cadences of
- 33:58getting teams together so they really
- 34:00build not just business context but also
- 34:03social context and relationships and
- 34:05that is really a huge unlock for remote
- 34:07teams. have to have that as a
- 34:09foundation. So remote teams have to have
- 34:11a lot of in-person touch points. It can
- 34:13vary based on the team and the work, but
- 34:14that's a key part of relationship
- 34:16building. And then you also need to be
- 34:18very clear about what are the remote
- 34:19work practices. So for example, in our
- 34:21company in every meeting, cameras are on
- 34:24for every participant. And that is
- 34:26really the guiding light as just one
- 34:27example kind of practically of how we
- 34:30ensure people are like seeing and
- 34:31hearing from each other, able to read
- 34:32body language. It's not about just dial
- 34:34in on the phone. you have to be like
- 34:36physically present. Uh those are some of
- 34:38the things that we do in addition to
- 34:40like weekly touch points where you build
- 34:42culture. You've got to build culture
- 34:43with a remote team that's not in the
- 34:45office. And for us that means things
- 34:46like a halfhour touch point every week
- 34:49where we can put our culture on display,
- 34:51showcase work that's happening, create
- 34:53context, and also let people see and
- 34:55hear about things that are happening
- 34:56across the business that they're not
- 34:58hearing about when they're not in an
- 34:59office, which is what most of our team,
- 35:00you know, is. So those are some of the
- 35:02things that really have helped us build
- 35:04remote culture and remote fabric. But
- 35:06every company has to approach this for
- 35:07like what's right for them.
- 35:09>> We'll be back with the rest of my
- 35:10conversation with Hayden Brown in just a
- 35:12moment. Like Hayden, the co-founders of
- 35:14Warby Parker know how important it is to
- 35:17move fast. And for them, agility starts
- 35:20with fast, open, streamlined
- 35:22communication.
- 35:24We found that to be successful and to
- 35:28grow quickly, right? Information has to
- 35:30flow quickly within the organization.
- 35:32And similarly, it's got to flow quickly
- 35:35between the two of us, right? We need to
- 35:36model the behavior that we want to take
- 35:38place throughout the organization. So,
- 35:41we also our office is an open layout. We
- 35:43sit right next to each other in between
- 35:45meetings. We're often, you know, sharing
- 35:46notes with one another. Sometimes we're
- 35:49the first people that we talk to in the
- 35:51morning and the last person we talk to
- 35:53at night. I don't know how much our
- 35:55wives love that. But again, to be a high
- 35:58growth company, right, you got to make
- 36:01quick decisions. And if those are going
- 36:03to be good decisions, they have to be
- 36:04informed decisions, which means
- 36:06information needs to travel quickly. And
- 36:08we think that our competitive advantage
- 36:11is having the best data, having the best
- 36:14information, and having that flow
- 36:16throughout the company across functional
- 36:20groups that are in other companies often
- 36:22don't talk to each other or don't even
- 36:24exist within the same company, right?
- 36:26And that's our competitive advantage. We
- 36:28have direct relationships with our
- 36:29customers because we sell direct to our
- 36:32customers through our stores and our
- 36:33website and our apps. Um, so we're able
- 36:36to get all this customer feedback and
- 36:38data, um, and then we disseminate it
- 36:41quickly across the company, whether it's
- 36:42to eyewear design or our merchants or to
- 36:45the technology team or to the CX team or
- 36:48to the marketing team, right? And then
- 36:50we're able to sort of move nimly and and
- 36:52quickly.
- 36:54Go back and listen to my entire
- 36:55conversation with co-CEOs Neil
- 36:57Blumenthal and Dave Gilboa, episode 181
- 37:01here on How Leaders Lead.
- 37:04What have you learned about managing
- 37:07conflict in a remote environment? You
- 37:11know, you talked about the body language
- 37:13and you know, but you know, how do you
- 37:16how do you wrestle tough things to the
- 37:18ground in a remote environment? So, it's
- 37:20not just a telling kind of back and
- 37:23forth mode that way.
- 37:25>> Two things have really helped us. So,
- 37:27one is the in-person relationship
- 37:29building, which again is about dinners.
- 37:31It's about going on hikes. It's like
- 37:32when teams get together, they focus on
- 37:34that. That social fabric then builds the
- 37:37psychological safety that people can
- 37:39have conflict with each other and feel
- 37:40like that's okay. And also when they
- 37:42hear, you know, a challenge or a push
- 37:44back from a colleague, they can know,
- 37:46oh, that's coming from a place of
- 37:47positive intent because we talked over
- 37:48dinner and he's a super nice guy and
- 37:50he's only saying this because he really
- 37:51thinks it's better for the business, so
- 37:53let's hash it out. So positive intent
- 37:55and psychological safety comes from that
- 37:57relationship building. The other piece
- 37:59of it which I talk a lot with our
- 38:00executive team about is you can't have
- 38:03like one dimension of communication. It
- 38:05can't be you know only scheduled
- 38:07meetings. When there's a conflict we
- 38:09have a a agreement that we will resolve
- 38:11things quickly. So we'll turn around
- 38:12we'll get on the phone right away or
- 38:14we'll set up an inerson meeting right
- 38:15away or we'll take action so that these
- 38:17things don't fester and become you know
- 38:20out of proportion or bigger conflicts.
- 38:22It's about use whatever tool necessary
- 38:24to kind of bottom this out immediately
- 38:25and don't let it wait. So never like let
- 38:27a conflict roll into the next week for
- 38:29example and resolve it by Friday.
- 38:31>> Maybe that's part of your build and
- 38:32break approach. You know, you're
- 38:34building the culture and you have to
- 38:35break down the barriers when you see
- 38:37them.
- 38:37>> Totally. And that's why as a product
- 38:39manager, I love this job. Like I now get
- 38:41to build the company, not just the
- 38:42product. And to me, that is everything.
- 38:45>> Speaking of that, you were a product
- 38:46manager. Now you're the CEO. You run
- 38:48every function. You know, how did you
- 38:50how did you broaden yourself?
- 38:52>> I'm a huge learner and I'm hugely
- 38:54curious. So I'm always asking other
- 38:56people for tips, advice, input, you
- 38:58know, reaching out to broaden my network
- 39:00and really learn about the things that
- 39:02are the next kind of challenges in the
- 39:04role. So I had the good fortune of doing
- 39:06a lot of product marketing, you know,
- 39:08some other things before I became the
- 39:10CEO. But I've also realized there's al
- 39:13nothing like trial by fire. And
- 39:14sometimes you can prepare, you can
- 39:17learn, but then you just have to go and
- 39:18do it. You have to get into it. And you
- 39:20learn a lot by doing. You know that
- 39:21would be like my first earnings call. I
- 39:23had never led an earnings call before,
- 39:25but I I prepared, I practiced, I kind of
- 39:27thought through it. And actually then I
- 39:28took like a giant risk and surprised the
- 39:30street with some announcements they
- 39:31weren't expecting and it paid off. It
- 39:33totally worked. But, you know, at some
- 39:34point you have to kind of set aside this
- 39:36idea that everyone else knows better.
- 39:38Kind of like what I learned at McKenzie,
- 39:40like everyone else is more expert. I
- 39:41learned, you know, everyone's kind of
- 39:42making it up. And so it's okay to learn,
- 39:44be smart, start with first principles,
- 39:46and then go and apply that knowledge and
- 39:48then rinse and repeat. Now you're a very
- 39:50confident person but has there been a
- 39:52time where you really had some
- 39:54significant doubt and and if so how did
- 39:57you how did you work through it? Can you
- 39:59share that?
- 40:01>> So two months into the job as the new
- 40:03CEO and mind you I stepped into a
- 40:05context that was um you know we were
- 40:07about one year postpublic. Our stock
- 40:09price had been faltering. Investors had
- 40:11some questions. I was put in as this new
- 40:13CEO. They didn't know yet and I had a
- 40:15clear idea of what we needed to do with
- 40:17the business. But some of the things I
- 40:19felt we needed to do were very risky. So
- 40:21I laid out my strategy and my plan to
- 40:24the team. But part of that was saying we
- 40:26have to act like we're in wartime. We
- 40:28have to work a lot harder. The bar for
- 40:30excellence is now going up. And this is
- 40:32what I'm asking of and expecting of you.
- 40:35And the thing that I was wanted to do
- 40:37that I debated was I actually wanted to
- 40:39make sure everyone at the company who
- 40:41wanted to be there was there and
- 40:43committed to this new plan and this
- 40:45level of effort and that anyone who was
- 40:47not intending to be there or did not
- 40:49feel like this was a good idea for them
- 40:51was out the door. So what I wanted to do
- 40:54was this thing. We ended up calling it
- 40:55the graceful leave program where we
- 40:58offered everyone a severance package
- 41:00after I had shared this new strategy and
- 41:02these new expectations and said every
- 41:03single person if you don't want to be
- 41:04part of this here's a check here you can
- 41:07you can go now. But the question for us
- 41:09was a like what is this going to do?
- 41:12Like is are we going to have 20 people
- 41:13left at the end of this? You know who's
- 41:14going to stay and who's not? Is this too
- 41:16risky? And also when do we do it?
- 41:18because I was two months in and there
- 41:20was a lot of discussion maybe we should
- 41:21do at the end of Q1 or Q2. Well, it
- 41:24turned out we did it in February. We
- 41:26executed this plan. We offered people
- 41:28severance. A number of people took it.
- 41:30We also, you know, helped coach some
- 41:32people out that maybe were not a good
- 41:33cultural fit. So, it was a huge actual
- 41:35win for us. But what I realized was the
- 41:37pandemic hit in March and if we had not
- 41:40moved fast and executed on that in
- 41:43February, we would have been in a very
- 41:44different situation in terms of
- 41:45executing that type of transformation of
- 41:47our workforce and our business during
- 41:48the pandemic when it was like a no no to
- 41:51to fire anybody. So I had debated and
- 41:54deliberated the time frame. I got some
- 41:55great input from people that were like,
- 41:56"Hey, we know you want to move fast.
- 41:58Just do it in February." And I did it.
- 42:00And looking back, that was such a good
- 42:01decision. And that gave me a lot of
- 42:02confidence in future decisions about
- 42:04moving fast, not equivocating, and just
- 42:06going for it even when the outcome was
- 42:08very much unknown.
- 42:09>> Yeah. Well, the graceful leave. That's
- 42:11another another example of where your
- 42:13clarity really paid off. You said this
- 42:16is where we're going. You know, I'm
- 42:18excited about where it is. I think
- 42:19there's huge potential there. But you
- 42:22got to you got to believe it, too. And
- 42:24if you believe it, we're together. If
- 42:25not, you know, uh you can leave grace
- 42:28with. That's that's a pretty good
- 42:29example, you know. And you you mentioned
- 42:31you mentioned COVID and you became CEO
- 42:35right before the pandemic. Uh how did
- 42:37that accelerate
- 42:39your your learning just on on remote
- 42:42work? What have you what have you
- 42:43learned about remote work because of
- 42:46COVID?
- 42:47>> It's a great question. We because we
- 42:49were a a hybrid and remoteoriented
- 42:51company before COVID. We always had a
- 42:534-1 model in our offices. four days in
- 42:55the office, one day remote, and then we
- 42:56had this extensive team of of
- 42:58freelancers predominantly who were
- 43:00nowhere near our offices. So, we had
- 43:01this huge remote workforce. It was easy
- 43:03for us to flip the switch and go fully
- 43:05remote when COVID happened. I did learn
- 43:07how hard it was for other companies and
- 43:09how much we could help and educate them
- 43:10with some of our practices. So, that
- 43:11that was a benefit. But I also learned
- 43:14to my comments earlier remote work when
- 43:16it's fully remote and you can never get
- 43:18together in person which was the case
- 43:20more or less for the first you know one
- 43:21and a half two years of the pandemic is
- 43:24very different than remote work when you
- 43:25can have these inerson touch points and
- 43:27I think one mistake we made during co is
- 43:29you know we grew the business
- 43:30significantly our our topline nearly
- 43:32doubled or did double our our employee
- 43:34base expanded significantly as well but
- 43:37because we were already so good at
- 43:38remote work we didn't think about
- 43:40incepting our team members that we were
- 43:42hiring with all of the practices with
- 43:44the level of intentionality that we had
- 43:46had in the past because in the past
- 43:47people just come to the office and be on
- 43:49the road and they kind of learned these
- 43:50things through the way our culture
- 43:51worked. They'd be in person sometimes
- 43:53etc. without those inerson touch points
- 43:55and without enough intentionality around
- 43:57what our remote work model was. We
- 43:59actually kind of backslid at periods of
- 44:00time where it was like oh this isn't as
- 44:02effective as it could be. So since then
- 44:05we've really dialed our dials in terms
- 44:06of the intentionality in terms of the
- 44:08communication around what our our our
- 44:10approaches are. But I think it was
- 44:11definitely interesting to see kind of
- 44:12through that period, you know, some of
- 44:14the struggles that we ourselves had at
- 44:15moments because of our growth and
- 44:17because people didn't all understand how
- 44:18to work in our remote company.
- 44:20>> Yeah. And and nobody has a crystal ball,
- 44:21but if you could look out five years
- 44:24from now, how would you describe the the
- 44:27remote work world?
- 44:28>> It's going to keep getting better
- 44:30because the technology will improve. And
- 44:32I do think technology enablement, you
- 44:34know, is a huge driver here of whether
- 44:36remote work is successful or not. So I'm
- 44:38an optimist in that sense. Uh I do think
- 44:41though at this moment everyone is is
- 44:42recognizing the value of in person and
- 44:44trying to find that balance again. You
- 44:46know having many companies swung
- 44:47extremely remote and I think that's
- 44:49going to continue. I think we're going
- 44:50to see more of these hybrid models where
- 44:53people have a mixed workforce of on-site
- 44:55and remote folks. But the technology
- 44:57enablement will mean the remote people
- 44:59can contribute and be participating and
- 45:01even higher levels than probably what we
- 45:02see today.
- 45:03>> You know I've seen technology where it's
- 45:06like if you and I were sitting right
- 45:08across from each other like we're doing
- 45:09right now. I could basically put my hand
- 45:12into your screen and it's almost like we
- 45:14could shake hands. It's like pick up an
- 45:16apple off your desk or whatever. I mean
- 45:19it's amazing you know where do you see
- 45:22that going?
- 45:23>> I mean I I am sure these things will
- 45:26continue to come kind of from the lab
- 45:29you know into reality. That is the
- 45:30natural technology life cycle. And I
- 45:32think it's easy to underestimate how
- 45:35impactful they'll be. I'll give you one
- 45:37example. we as a leadership team decided
- 45:40to adopt um kind of we got we got the
- 45:43like meta 3D glasses and we did some of
- 45:46our team meetings as during the pandemic
- 45:48through like a virtual reality setup and
- 45:51most of it was actually like terrible
- 45:52because the technology wasn't very good
- 45:54and there were all kinds of issues but
- 45:56one thing I remember clearly was the
- 45:57stereoscopic sound where we could kind
- 46:00of talk over and with each other more
- 46:02naturally the way you are in a room
- 46:04versus on Zoom where it's kind of
- 46:05turnbyturn talking and then people talk
- 46:07over each other and they both have to
- 46:08stop and it's kind of messy. Just that
- 46:11improvement actually made it feel like
- 46:13such a better higher quality touch point
- 46:15for us as a team. So if you imagine
- 46:18that's just like one small innovation
- 46:19that can come to all of our remote work
- 46:21tools and then multiply it times these
- 46:23more dramatic things you know whether
- 46:24it's kind of hologram type you know
- 46:26inerson experiences like the one you're
- 46:28describing there's a lot there and again
- 46:30I think that the exponential improvement
- 46:32of what remote can be based on that is
- 46:34huge. You know, this has been so much
- 46:36fun and and I want to have some more
- 46:37with my lightning round of questions.
- 46:39Are you ready for this?
- 46:41>> I'll do my best. I'll do my best.
- 46:43>> Well, one thing I know is for sure.
- 46:45We're going to get some clarity here.
- 46:46Okay. The What are the three words that
- 46:48best describe you?
- 46:49>> Bold, analytical, compassionate.
- 46:52>> If you could be one person for a day
- 46:54beside yourself, who would it be?
- 46:56>> I'd want to be one of my kids. I would
- 46:59love to be a child again and experience
- 47:00childhood, you know, through their eyes
- 47:02and also see what kind of parents uh
- 47:03they think my husband and I are.
- 47:06>> What's your biggest pet peeve?
- 47:08>> I have this thing I'm a stickler for
- 47:10setting goals with dates and then being
- 47:13clear with metrics using a framework
- 47:14called from X to Y by When?
- 47:18>> Clarity again. Who would play you in a
- 47:21movie?
- 47:21>> Can I say Idris Elba because he's just
- 47:23so awesome.
- 47:24>> Perfect. I love it. you know, uh, how
- 47:27many languages do you speak?
- 47:28>> 2.2.
- 47:30>> What's the point two?
- 47:31>> Uh, my Nepali used to be a lot better
- 47:33when we lived in Commando and now it's
- 47:35definitely degraded.
- 47:36>> And what's your other language besides
- 47:38English?
- 47:39>> Spanish. Oh, and I have a bit of
- 47:40Japanese, too. So, maybe it's 2.5.
- 47:42>> What's the one thing you do just for
- 47:44you?
- 47:44>> Drive fast with loud music and the
- 47:47windows down.
- 47:47>> All right. If I turned on the radio in
- 47:49your car, what would I hear? you would
- 47:51hear Gold Gun Girls, which is like one
- 47:54of my favorite songs uh by Metric and
- 47:56probably some Taylor Swift. I'm still
- 47:58like the man and uh You've Got to Calm
- 48:00Down some of my favorites.
- 48:02>> Besides your family, what's your your
- 48:04most uh prized possession?
- 48:06>> Maybe my house. We we designed that
- 48:08thing to be so purpose purposeful for
- 48:10what we wanted.
- 48:11>> Yeah, that's great. What's something
- 48:13about you few people would know?
- 48:15>> I'm a huge design junkie. Like my close
- 48:17friends know this, but architecture and
- 48:19interior design, that's like my second
- 48:21life.
- 48:21>> And what's one of your daily rituals?
- 48:23Something that that you never ever miss.
- 48:26>> Sun before screens. I always have to
- 48:28look at the sky before I turn on my
- 48:30phone in the morning.
- 48:30>> Oh, that's cool. That's cool. All right,
- 48:33we're out of the lightning round. Great
- 48:34job. Uh, and I just got a few more
- 48:36questions for you and we'll wrap this
- 48:37up. You know, you know, I've heard you
- 48:39tell stories about the adventures your
- 48:41parents would take you on as a kid and
- 48:43you lived in Nepal and you know, how are
- 48:46you leaning into that same kind of
- 48:50adventure now? As a parent,
- 48:52>> it's really important to me that my kids
- 48:55feel like they're part of a world that's
- 48:57bigger than, you know, where we are in
- 48:59California. We do an international trip
- 49:01minimum once a year with them so they
- 49:03can kind of see and experience the
- 49:04world. This year, I also took my uh
- 49:0610-year-old to Ecuador on a one-on-one
- 49:08trip because I wanted her to see that
- 49:10and to have that one-on-one time with
- 49:11her. So, travel for us is a big thematic
- 49:14where we're constantly getting out and I
- 49:16want my kids to have that exposure. I'm
- 49:18not ready to be an expat with them yet,
- 49:19but I do want them to feel like they
- 49:21really are global citizens.
- 49:22>> And and what kind of leadership because
- 49:25you're obviously an excellent leader.
- 49:27What kind of leadership do you do you
- 49:29try to take home with you when you're
- 49:31dealing with your husband and your
- 49:32family? And how do how do you look at
- 49:34leadership at home?
- 49:35>> Leadership at home for me, David, is all
- 49:38about love. It's all about leading from
- 49:40a place of love. My biggest goal as a
- 49:43parent is for my kids to know they are
- 49:45unconditionally loved. They are it's not
- 49:47about grades. It's not about
- 49:48performance. Nothing is conditional
- 49:50about how much my husband and I love
- 49:51them. And so I'm constantly focused on
- 49:54peeling back any layers and just making
- 49:55sure they know how much they are loved.
- 49:58And you know, you mentioned
- 49:59compassionate is one of the words you'd
- 50:01use to describe yourself and and
- 50:03compassionate being kind. How do you
- 50:06balance that with just the
- 50:08tough-mindedness
- 50:10it it takes to be a CEO? Like having a
- 50:14graceful leave policy, for example. I
- 50:16mean, that took some tough-mindedness.
- 50:19>> Yeah. You know, it can seem like these
- 50:21things are at odds, but I actually see
- 50:23them as interlin because, you know, in
- 50:26the in the example of that graceful
- 50:27leave policy, yes, we invited and asked
- 50:30some people to leave the business at
- 50:32that time because we knew they weren't a
- 50:33right fit or we wanted them to self-
- 50:35select and we wanted the existing people
- 50:36to to like really opt in. But that's a
- 50:39compassionate thing to do to give people
- 50:40choice and to give them agency and
- 50:42acknowledge that they have that agency
- 50:44and acknowledge that if they're not the
- 50:45right fit, this is not going to end well
- 50:47for them or for us anyway. even if we
- 50:49play it out a little bit longer. So, I
- 50:51think a lot of these choices on the face
- 50:53can seem like they're not coming from a
- 50:55place of care and kindness, but you
- 50:57know, one thing I love is like letting
- 50:59people be free to go find greater
- 51:01opportunities somewhere else if they're
- 51:02not a fit here. And that actually is an
- 51:04act of love.
- 51:05>> Hey, listen. Every great company has a
- 51:07north star. You know, there's something
- 51:09that it's a noble cause. You know, you
- 51:11go to work and you're just you're not
- 51:13just going to work to make a paycheck.
- 51:15You're going to work to really make the
- 51:17world a better place. you know what's
- 51:19your what's your purpose Hayden and and
- 51:22uh how do you drive it deep in your
- 51:24organization?
- 51:25>> We are very fortunate because we as a
- 51:28business have a purpose that is so
- 51:31evident in everything we do. Our purpose
- 51:33is to create opportunity in every era of
- 51:36work. You know we've done this for
- 51:38businesses and talent through the advent
- 51:40of you know mobile shifting to the cloud
- 51:43social media like all of these phases of
- 51:45work that have happened over the last 20
- 51:46years. We've been right there helping
- 51:48our customers transform and meet those
- 51:50moments. So for us that purpose around
- 51:53creating opportunity in every era of
- 51:55work continues to be fresh and relevant
- 51:59because work is constantly changing and
- 52:01there's always more we can do to make
- 52:03work better for all the participants in
- 52:05it which is like a it's a huge mission
- 52:07statement if you think about it that
- 52:08way. So we have this purpose we drive it
- 52:11through I mean we show it in every all
- 52:13hands we talk about in every weekly
- 52:15meeting how the work we're doing
- 52:16connects back to that purpose and one of
- 52:18the ways it becomes very vivid is
- 52:20through customer stories and bring
- 52:22customers in through video through live
- 52:24interviews etc to talk about how that
- 52:27purpose has impacted them directly and I
- 52:29think that is one of the things that
- 52:30energizes us all the most
- 52:32>> you know uh we started out this uh
- 52:35conversation by talking about dating
- 52:38sites and what you'd learned uh that you
- 52:40could apply to to Upwork and and I'm
- 52:43actually interviewing tomorrow Whitney
- 52:45Wolf Herd, the head of uh Bumble. Yep.
- 52:48>> What question would you like to ask her
- 52:51if you could? It seems like on the
- 52:54precipice of AI, you know, a lot of the
- 52:56kind of prior models around dating and
- 52:58even companionship are changing in terms
- 53:00of both the tools that can be used to
- 53:04kind of facilitate matches and people
- 53:07actually looking for things from AI
- 53:09tools in terms of, you know,
- 53:11relationships that they didn't even
- 53:13think about before. We wouldn't even
- 53:14have thought about in the past. So, I'm
- 53:16really curious to understand how is she
- 53:17seeing her business, not just in the
- 53:19next year or two changed by AI, but what
- 53:21does it look like in five years? I think
- 53:22that would be an interesting
- 53:23prognostication.
- 53:24>> All right, great. I I'll definitely ask
- 53:26her that one. And and you know, thinking
- 53:28about the future, uh what do you see as
- 53:30your unfinished business?
- 53:32>> I mean, Upwork feels like very
- 53:34unfinished business for me. I mean, we
- 53:35are at the beginning of unlocking a huge
- 53:37market and really changing work for so
- 53:39many more people. So, this is like an
- 53:42incredible privilege and joy to work on
- 53:43this very unfinished business.
- 53:45And what's one piece of advice you'd
- 53:47give to anyone who wants to be a better
- 53:50leader?
- 53:50>> You know, I think people see bold moves
- 53:53as somehow hard and they hold themselves
- 53:56back because they want to find some path
- 53:58that maybe doesn't seem as disruptive,
- 54:02but the clarity and the boldness and
- 54:05really facing like what's the worst that
- 54:06could happen? I mean, we asked ourselves
- 54:07when we did this graceful leaf, what's
- 54:09the worst that could happen? And we
- 54:10said, you know, we'd rather be a tiny
- 54:12team of highly committed people than a
- 54:14big team of medium or not committed
- 54:16people. And I think asking yourself,
- 54:18what's the worst that can happen can
- 54:19really unlock for you as a leader
- 54:21willingness to do these things that on
- 54:23the face of it maybe seem bold or hard,
- 54:24but once you think it through, it's like
- 54:26the obvious thing you would do.
- 54:27>> Well, I can tell you the best thing that
- 54:29happened to me today is this
- 54:31conversation. You, you know, you are a
- 54:33tremendous leader. I'm so excited that
- 54:35people will get to learn from your
- 54:36insights and uh and and be able to to
- 54:40hopefully up their game like you have
- 54:41continually throughout your career and
- 54:43and I I I wish you all the best.
- 54:46>> Thank you so much, David. This was a lot
- 54:47of fun.
- 54:49[Music]
- 54:53It's probably easy to categorize clarity
- 54:56as just one more leadership skill you
- 54:59have to have, but Hayden shows us it's
- 55:02one of the most important tools a leader
- 55:04has. Without it, your team will miss
- 55:07opportunities and be less efficient. But
- 55:10to give your team clarity, you need more
- 55:12than good communication skills. You need
- 55:14curiosity to truly understand challenges
- 55:17they're facing. You need courage to step
- 55:19into tough conversations and you've got
- 55:21to be willing to make bold decisions,
- 55:24especially when no one else is quite
- 55:26sure what to do. Hayden models that so
- 55:28well and it's a big reason Upwork is
- 55:31able to succeed in a world that's moving
- 55:33faster than ever. So, here's your
- 55:35challenge this week. Find one way you
- 55:38can clear up a situation for your team.
- 55:40Maybe it's a conflict that's been
- 55:42festering, a product that's been
- 55:44stalling, or a big decision that needs
- 55:47to be made, but there's confusion all
- 55:49around it. Step in and lead. Bring the
- 55:53curiosity and courage I know that you've
- 55:56got and give your people the clarity
- 55:58they need to move forward. So, do you
- 56:00want to know how leaders lead? What we
- 56:02learned today is that great leaders
- 56:04create clarity for their teams. Coming
- 56:07up next on How Leaders Lead is Klaus
- 56:09Kleinfeld, former CEO of Seammens and
- 56:12Alcoa. So, be sure you subscribe on
- 56:14YouTube or wherever you get your podcast
- 56:17so you don't miss it. Thanks again for
- 56:20tuning in to another episode of How
- 56:22Leaders Lead, where every Thursday you
- 56:24get to listen in while I interview some
- 56:26of the very best leaders in the world. I
- 56:28make it a point to give you something
- 56:29simple on each episode that you can
- 56:32apply to your business so that you will
- 56:34become the best leader you can be.
- 56:40[Music]
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