Org planning
Headcount and AI, Organizational design, power structures, and frameworks for scaling team structures
Use power structures deliberately
- This is a new favorite post of mine from Molly Graham, on how to evolve your Company structure over time. It’s quite insightful, helped me see things in a new way, and will be something I refer to in the future. A very useful read! @jade
Engineering ratios for various sized companies
- Tomasz Tunguz on R&D expense as a percent of headcount. This is for “top enterprise companies”. They tend to move towards about 30% of headcount in R&D.
- This 2020 Redpoint survey by Tomasz Tunguz shows a ratio of Engineers to AEs going from 2:1 (before 5M ARR), to 1.75:1 (below 20M ARR), and 1.25:1 (below 50M ARR) and 1:1 (below 100M). With some variation.
- One leader’s read: “Engineering tends to be about 10-50% of headcount. This depends on revenue and growth. Large mature companies around 10%, very early stage companies at the top end. Oversimplifying: public, late-stage startups, PE backed between 15-20, and stage B and later with high growth 20-25.”
Headcount and AI
Mitosis method
Math behind org design
- Distributed systems, coda hale
- The SaaS org chart, and how it should evolve as a startup grows Pretty well done. You can argue about details, but the high level pictures is pretty accurate.