In the podcast, REWORK host Kimberly Rhodes talks with 37signals co-founders, Jason Fried and David Heinemeier Hansson, about their journey spinning off products. They stress the value of keeping contracts simple and how once the handover is done, it's best to take a hands-off approach and let the new team run things. They share their experiences with boards and underline the need for trust and flexibility.

Key Takeaways:

00:43 - The steps they took to transition "Know Your Company" into its own independent entity.

04:49 - Contracts don't offer as much protection as people believe.

10:58 - The differences in spinning off a startup vs. a long-established company.

14:53 - Letting capable partners take the reins and run the show independently.

18:51 - The challenge in finding the right partner for a spin-off business.

20:12 - In any transaction, things may not turn out as expected, but it may be worth taking calculated risks.

23:19 - Contracts don't necessarily prevent disputes and can sometimes escalate them unnecessarily.

Links and Resources:

Canopy, formerly known as Know Your Company

‘Know Your Company’ Deal Structure

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X

"Consensus is cozy, but broad agreement is not our aim. The right decision is. Which is why we take the time to think, debate, persuade, listen and reconsider and then, someone, decides. If you disagree, that’s fine, but once the decision is made, it’s time to commit and support it completely."

Tune in as Kimberly leads a chat with Jason Fried and David Heinemeier Hansson, co-founders of 37signals, about the concept of Disagree and Commit. Once a decision is made, everyone should be in 100% — no looking back.

Key Takeaways:

01:01 - Breaking down how Disagree and Commit operates

02:17 - Identifying the most suitable person to make the final decision based on the circumstance

07:40 - Embracing the "manager of one" concept, empowering individuals to decide independently with reasonable supervision

09:33 - Acknowledging that delegating decisions doesn't compromise the emphasis on quality

14:04 - Always keeping the door open to revisit and tweak things

15:44 - Granting capable individuals the freedom to make mistakes, alongside providing guidance for improvement

20:35 - Viewing hiring not just as an evaluation of current abilities but also considering potential growth opportunities.

Links and Resources:

Jeff Bezos 2016 Letter to Amazon Shareholders

There’s No Speed Limit by Derek Sivers – https://sive.rs/kimo

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

Jason Fried and David Heinemeier Hansson, the co-founders of 37signals, dive into their book REWORK and discuss the essay “Strangers at a Cocktail Party” with Rework host, Kimberly Rhodes. From their experience, hiring too many people at once can throw off the balance and continuity of a company's culture. They talk about the importance of gradual assimilation and how culture is implicit, not always written down. They share insights on the value of fresh perspectives and the excitement of facing challenges head-on.

Key Takeaways:

00:30 - Gradually integrating new hires is important for upholding an organization's established norms and values.

02:30 - Company culture is nurtured through the daily interactions and collective experiences shared within an organization.

05:34 - New hires inject new perspectives and innovative ideas into the mix.

07:14 - Embracing crises and novel challenges is part of the excitement of running a business.

12:19 - Reflecting on the hiring patterns at 37signals.

14:23 - While change is essential for adjusting the company's culture and strategy, it's vital to implement it carefully and minimize disruptions.

Links and Resources:

The Half-Life of Facts by Samuel Arbesman

All About Atlas - Boston Dynamics Robot

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X