Impact Scale Paradox

Shaan Puri reflects on the paradox of impact and value creation between working at big tech companies versus startups, drawing from his experiences at Twitch and conversations with tech executives.

Key Points:

• The "Jenga Law" of Impact:

  • If removing yourself from a company doesn't affect the tower (company), you weren't a key block
  • Hard to get excited about work when individual impact feels minimal
  • At startups, one person can create and capture significant value

• Value Creation & Capture:

  • Big Companies:
    • Fixed value capture (salary, bonus)
    • Products often fail or move slowly due to lack of individual incentives
    • Individual contribution diluted in large teams
  • Startups:
    • Can create direct value for customers
    • Able to capture huge amount of value personally
    • More control over product and direction

• The Scale Argument (Counter Perspective):

  • Big Tech Perspective:
    • Improving product for billions of users has massive reach
    • Small improvements affect millions (Google Book Search example)
    • Impact through scale rather than individual contribution
  • Personal Take:
    • Acknowledges the math of scale
    • But doesn't "feel" the same as direct impact
    • Action and satisfaction different at big companies

• Career Decision Framework:

  • Consider whether you matter in the organization
  • Evaluate ability to create and capture value
  • Balance between scale of impact and personal satisfaction
  • Think about whether you can affect meaningful change

• Value of Time vs Scale:

  • Big companies offer broad but diluted impact
  • Startups offer concentrated but limited impact
  • Personal preference often determines satisfaction
  • Need to align with individual goals and values