Max Altman Critiques Tech’s Mission Focus, Advocates for Growth
During an appearance on the “20VC” podcast, venture capitalist Max Altman criticized the technology sector for becoming overly focused on mission statements at the expense of business growth. He urged tech workers to prioritize joining the fastest-growing companies, emphasizing that true success comes from winning in the marketplace.
Altman, who is the cofounder of Saga, a venture fund worth $125 million, shared his thoughts in a discussion that aired on October 8, 2023. He pointed out that many tech companies have been fixated on their missions, often framing their products as solutions to global challenges, such as “on-demand dry cleaning” and “on-demand dog walking.” This, he argued, detracted from the essential goal of building robust businesses.
“I say, don’t care about the product. Don’t care about anything, just go work at the fastest growing company,” Altman stated, adding that “winning feels great.” His career path includes significant roles at Microsoft, Zenefits, and Rippling, providing him with a comprehensive perspective on the industry’s evolution.
Shift in Tech Culture
According to Altman, the tech industry experienced a misalignment in priorities, particularly in the years leading up to 2020. This focus on mission over profitability, he noted, contributed to a lack of direction. He insisted that the real excitement in tech lies in building successful businesses rather than merely espousing lofty ideals.
In recent years, the industry has begun to realign, with many companies now emphasizing efficiency and streamlined operations. Executives are increasingly adopting terms like “efficiency,” “scrappiness,” and “frugality” in their communications. This shift is evident in organizational structures, with many firms cutting middle management to create leaner teams.
Intel’s CEO Lip-Bu Tan outlined a new cultural approach for the company in April 2023, focusing on reducing administrative roles and increasing productivity within smaller teams. He noted that the size of teams would no longer be a key performance indicator, highlighting the need for leaders who can achieve more with fewer resources.
Similarly, Andy Jassy, CEO of Amazon, expressed a vision for the company to operate “like the world’s largest startup” in a letter dated September 2024. He underscored the importance of urgency, ownership, and innovative thinking as essential components of the company’s culture.
Industry Response to Changing Dynamics
The shift towards a more growth-oriented mindset has also led many companies to restructure their teams and reduce staff. Late last month, Amazon announced it would lay off 14,000 corporate employees, a decision attributed to the rapid advancement of artificial intelligence and the need to adapt to changing market conditions.
As the tech industry continues to evolve, Altman’s insights serve as a reminder of the importance of balancing mission-driven goals with the practicalities of business growth. His call for a renewed focus on winning in the marketplace reflects a broader trend among tech companies, which are increasingly prioritizing efficiency and agility to thrive in a competitive landscape.
