013. Why "Wartime CEOs" may win the battle but lose the war
Unpacking the Silicon Valley classic trope of "Peacetime CEO vs. Wartime CEO"
Welcome to this special edition of Safe For Work! I took a sick week last week, but ya girl is fully recovered and so excited to welcome my first-ever guest! Jess Yuen, is an executive coach and veteran People leader for some of the most well-known Silicon Valley companies. Below, you’ll find a lightly edited version of our illuminating conversation that explores the current trends in CEO mindsets, particularly around the concept of “wartime CEO vs. peacetime CEO.”
JEN: OK Jess, our first agenda item is to introduce you to my readers and share how we met! Many years ago, I stumbled upon an interview you gave about being a startup Head of People. Articles like that were still rare back then, and I remember reading it and thinking, “oh she *gets* it.” A couple years later, you were the Head of People at Gusto, and I was a first-time Head of People. I reached out, you invited me to lunch, and you were so gracious and encouraging. It really made an impression on me back when I still felt so early in my career.
Since then, you've been so incredibly supportive to me personally, and continue to be a model leader in the People space. More people should know about you and your work now as a CEO coach! I’m so glad to have you here and share your wisdom.
JESS: It’s an honor to be your first guest! Thinking back to the beginning of your career is really fun because even then, you exuded so much insight and foresight. It’s a joy to support you and follow you in your evolving journey. Plus, I’m a huge fan of Safe for Work — and really, your entire prolific library of content! — so thanks for having me.
JEN: I’m blushing… Well, it helps there’s never a shortage of juicy topics in org building and People Ops to write about… And that's a perfect segue to today’s topic: CEO mindsets in volatile markets. What do you mean by this phrase? And what are the trends you’re seeing these days?
JESS: Before diving into CEO mindsets, let’s set the backdrop. The current landscape is volatile: political conflict, economic instability, VC funding unsteadiness … not to mention the ups and downs in markets, plus an overlay of sweeping changes, like the influence of GenAI. The double whammy for VC-backed companies has been continually extended fundraising delays, plus strong pressure towards profitability. This is forcing most leaders to rethink their business models.
As a result, I’ve seen a strong shift to a so-called "wartime" mindset, as described by Ben Horowitz in his classic blog post. The concept of a “peacetime CEO” versus a “wartime CEO,” on the surface, makes sense — don’t lead the same way in different contexts. Here’s how Horowitz defines these terms:
“Peacetime in business means those times when a company has a large advantage versus the competition in its core market, and its market is growing. In times of peace, the company can focus on expanding the market and reinforcing the company’s strengths.
In wartime, a company is fending off an imminent existential threat.”
What really makes me nervous is when leaders say, “I'm going into wartime CEO mode” as a shorthand for “I'm going to stop being an empathetic person.”
JEN: Right, going into survival mode.
JESS: Here’s the thing. I get we need to move faster, make quick decisions, and be more focused. But then, aren’t we always in wartime? Startups need to move faster, make quick decisions, and be more focused, regardless of the environment. So now, adding on “I can be less human” feels like flawed thinking. Being human is so fundamental to being a leader. Even if you’re a CEO. Even if you’re in “wartime.”
JEN: Are you hearing that from more and more CEOs these days? “I’m a wartime CEO now, hear me roar?” 😛
JESS: Obviously, not all of them … but yes! And using that label to justify being more short with people, rash in decisions, or leaving out context to stakeholders as they sprint ahead.
JEN: I can understand the appeal of a mental shortcut. A leader’s main challenge is being the Communicator-in-Chief, and this is doubly true for startups, where founders may not have had much time to grow into this skill. The larger the org, the more complex the communication, and more is time required, plus you have to repeat the same messages over and over – it’s frustrating, and sooooo slow. But on the other hand, “I’m a wartime CEO now, deal with it,” is just one sentence.
Ironically, during times of change is when *more* communication is needed to effectively lead an organization. Skipping that work might be appealing in the short-term, but a bad idea in the long run.
JESS: Yes, the startup adage “go slow to go fast” is apt here.
JEN: Understandably a hard mindset to adapt when there’s been so much pressure, as well as pivots and RIFs (Reduction-in-Force). What are you seeing around that when it comes to wartime CEO mindsets?
JESS: Many CEOs are thinking: “We're lucky for the company to still be alive. Therefore, these employees should feel lucky just to have a job. We’re fighting tooth and nail, and here they are asking for flexibility or a promotion, asking for all the things when it's amazing the company is even in business.”
And yet, employees are wondering, “Should I stick around? If we’re making cuts and shifting strategy, what does that mean about my company’s business model? I need to be convinced to continue to invest my effort and energy here. Will I still have worthwhile opportunities if I stick it out?”
So how do we embrace both points of view? Of course, we need the business to survive — if there's no business, none of the employees have jobs. But the options aren’t: be a jerk, business survives OR be nice, business dies. There’s a way to be clear and focused and human while leading through a storm.
JEN: To me, it’s always a flag when someone says “You should feel lucky.” Feeling lucky about something means *I* get to choose to feel grateful for it – but that’s not something that can be imposed. In fact, leaders saying “employees should feel lucky” feels like a weird way of trying to gloss over that RIF or difficult event – almost like saying, “Shut up and get back to work, all these pesky feelings be damned.”
It's as if… by proclaiming yourself “a wartime CEO,” you’re putting on armor, and you tell yourself it gives you an excuse to stop exercising human-centered leadership skills. When in reality, after a difficult event is *the* time to gather your people, take off your armor, and talk about it – “We just overcame a scary challenge together. Glad we’re still here. Let’s talk about how to get things back on track.”
JESS: I appreciate the language you use here because it highlights that we don’t need to be mushy and overly feelings-oriented. Acknowledge what has been experienced and how we channel that going forward.
And regarding pesky feelings — what role do feelings play in this at all? Should leaders bother with them? Spoiler alert: yes! Would you approach someone who is angry with you differently than someone who is happy with you? Of course. Feelings matter.
JEN: So “Wartime CEO” can be a pithy way to shortcut a lot of work. We sure love our pithy sayings in Silicon Valley¹. But are they helpful? Especially when considering that Ben Horowitz published this post in 2011, reflecting his context and learnings as a leader in the 1990s and early 2000s. Is it still relevant today?
JESS: It’s so tempting to cherry-pick a concept and plop it onto a situation. When Horowitz was a CEO, it was in the days when many leaders were still emulating early Bill Gates, Larry Ellison, and Steve Jobs’ approaches to management — which was generally much more harsh, hierarchical, and aggressive than is the norm today. Now, a couple decades later, leaders are expected to be much more empathetic and inclusive.
JEN: Sounds like your invitation to leaders is to not take the “wartime CEO” label at surface value, but to think more critically – “Sounds good in theory, but what does it mean to *you*?”
Maybe the unspoken dynamic here is that running a startup is a battle and leaders are tired. Startups, by their nature, are going against the status quo – taking risks. Especially in the context of economic uncertainty, pressure from VCs, and even the political climate. So the concept of “wartime CEO” becomes a crutch. But a war metaphor – a “Kill or Be Killed” mentality – seems like taking it too far.
So then, I have to ask… who exactly is the enemy of the wartime CEO? Let’s really lean into this – who are you in a war against exactly? I suspect if CEOs are too quick to embrace this war mindset, it’s the people around them – employees – who end up being implicitly labeled the enemy.
JESS: And it’s misconstruing who is the actual enemy at the end of the day.
JEN: The CEO understandably carries so much burden of responsibility for the business. There’s so much to process and constant pressure to deal with. Then comes along an employee complaining about, say, PTO policy. Then goes the armor, “I’m a wartime CEO, I do not have to listen to this person.”
Leaders in this time may be prone to reactionary responses, instead of being able to listen and really look at the problem, or appropriately de-escalate it. Understandable, but that’s why the wartime armor is very unhelpful.
JESS: That armor can be protective gear, for sure. As a founder, your blood, sweat, and tears go into the business. The hope is that you’ve convinced employees to be just as invested. CEOs are putting on their armor, going to battle, and wondering: Why isn’t everyone as fired up and ready as I am? How do I get everything to move faster?
JEN: Maybe what you're speaking to then is... Well, I'm just gonna call it out. In the coming months and years, more companies will fail as we continue to cycle through this volatility and reset the unrealistic expectations of the last couple of years.
Of course, failure is the default for startups, but we're going to see companies fail particularly hard. Maybe quickness to adapt the wartime CEO label is a precursor to a much more difficult journey, of facing the reality of potential failure. Was I wrong? Does my business model even make sense? Is this all my fault? It can be torturous. So in the meantime… wartime CEO it is! No introspection required there.
But this label has a way of isolating and trapping you into thinking, "I need to do this by myself.”...But you still need to lead your people. So, it’s like… you and what army?
JESS: What army, indeed! And to get that army to follow you — what type of leader do you want to be? “Wartime” describes the backdrop. What about you, the leader? Are you leading by fear? Through inspiration? Being clear about how you want to show up will help align your intention with your impact.
So what’s the impact of a wartime CEO’s actions? Perhaps at first, grace is given due to stress, overwhelm, and circumstances. But eventually the one-offs become accepted norms. Does that lead to the culture you want? Or the business outcomes?
JEN: Sounds like at the center of this conversation, is an invitation for leaders to balance out. Of course it’s important to be nimble and responsive to the current market conditions – but not so shortsighted that you are f***ing yourself over. It’s an important lesson in leadership, but not explicitly discussed nearly enough.
So, here’s my last question: if any startup founders or employees hear “the wartime CEO” phrase being thrown around, how would you advise them to approach it?
JESS: For employees: Curiosity. Ask yourself, what does my CEO mean by wartime? How can I surface how my CEO’s actions land versus their intentions? What influence do I have given the circumstances on the business and on the culture?
For CEOs and all leaders: Intentionality. It's not about being a wartime or peacetime CEO, but about being an intentional leader. How would you ideally want your team to describe you and what behaviors can you exhibit to align with those descriptors? And for higher stakes interactions (or any interaction!): Use Think/Feel/Do to create intentionality with each interaction. What do I want this other person or my team to think? What do I want them to feel? And what do I want them to do after our interaction?
If you hear this and think, “Come on Jess, it’s wartime! I don’t have time for this,” my response is: Exactly. Don’t go down as a martyr. Be intentional. It will better enable you to fight your war as the general of a powerful army.
If you’re a founder who’s been getting pulled into the wartime CEO mindset (or know someone who is), reach out to Jess so she can talk you out of it 😉
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Jennifer Kim is the CEO/Founder of Workflow, an education and consulting company that trains the next generation of startup leaders on all things Recruiting, People Ops, and DEI. Through its flagship program, the HireEd Accelerator, Jen and her team have taught hundreds of startup leaders to make hiring a competitive advantage. Previously, Jen was Head of People at Lever and was Advisor to dozens of top startups. She is also a Venture Partner at Symphonic Capital, and is known for her hot takes on tech industry and culture as @jenistyping.
References:
¹ Safe For Work, #006: Why companies’ obsession with “top talent” sabotages great hiring – and how to do better.