Entrepreneur Marc Lore, who has sold two companies for billions, is gearing up to take his food delivery venture, Wonder, public at a projected $40 billion valuation. Recently, Lore shared his thoughts on leadership philosophies, hiring practices, and why embracing risk is vital for startups. His approach offers a departure from conventional methods while underscoring the demands of rapid business growth.
Building Alignment Through Vision and Strategy
Lore places significant emphasis on what he calls “vision, capital, and people.” Unlike the hands-on “founder mode” adopted by some CEOs, Lore focuses on fostering alignment within his leadership team. He dedicates two hours weekly to refining foundational elements, including vision, strategy, organizational structure, and performance management systems.
“Stuff that you think is already set—behaviors, values, strategy—evolves over time,” he explains. Continuous discussion ensures teams stay aligned and adaptable. Once this foundation is solid, Lore empowers his team to operate independently, trusting them to execute on the shared vision.
The Search for “Rock Star” Hires
For Lore, hiring top talent is non-negotiable. “I’m really, really big on hiring rock stars,” he states. However, his hiring philosophy challenges the idea that exceptional talent can be identified through a brief interview.
“You cannot tell if somebody is a rock star in a one-hour interview,” Lore asserts, noting that strong resumes often provide better indicators of success. According to him, superstar candidates exhibit clear patterns: consistent promotions, long tenures, and meaningful career advancements.
“When I get that resume that shows that demonstrable level of success, I grab it and pay them whatever they need,” Lore says, emphasizing that assembling a team of high performers is critical. He also stresses the importance of performance management systems to provide clear pathways for growth, especially for highly motivated employees, including Gen Z professionals.
Risk as a Startup’s Lifeline
Lore’s perspective on risk-taking is rooted in the inherent fragility of startups. He challenges the conventional tendency to avoid risk, warning that maintaining the status quo can be deadly for young companies.
“People always underestimate the risk of the status quo, and they overestimate the risk of making a change,” Lore notes. He likens startups to patients with life-threatening conditions: bold, unconventional actions often offer the best chance of survival.
Drawing from his experience, Lore contrasts the cautious approach of large companies like Walmart with the decisive, risk-embracing mindset required in startups. “As a startup founder, chances are you’re going to die. Doing nothing is the most risk you can possibly take,” he concludes.
Featured image courtesy of Forbes India
