Leading through uncertainty: A design-led company - Brian Chesky (Config 2023)

Summary

Airbnb CEO Brian Chesky recounts how in 2019 he realized Airbnb was becoming too corporate and losing its original vision. After the pandemic caused Airbnb's business to drop 80%, Chesky used it as an opportunity to rebuild Airbnb around design principles with a simpler organizational structure. He eliminated wasteful projects, empowered small creative teams, minimized A/B testing, and reviewed all work regularly as 'chief editor' to orchestrate shared consciousness. Over the next 3 years with this approach, Airbnb went from break-even to nearly $4 billion in free cash flow. Chesky urges designers to have nerve, make products they love, simplify everything, and know they can run companies putting design at the center.

Takeaways

• 😊 Brian Chesky, CEO and co-founder of Airbnb, studied industrial design in college and brought a design focus to building Airbnb.
• 🏠 Airbnb's business dropped 80% at the start of the COVID-19 pandemic in early 2020, forcing major changes.
• 👨‍💼 Chesky brought in Apple's former design leads to help transform Airbnb into a more design-driven company.
• 📈 Airbnb went from break even to generating nearly $4 billion in free cash flow after its redesign.
• 😀 Chesky sees designers as architects that can design not just products but entire companies.
• 🎨 Chesky elevated designers to drive product development rather than just serve engineering teams.
• 🔎 Airbnb mapped out every user touchpoint to systematically improve core customer experiences.
• ❌ Chesky cut down projects and experiments that weren't improving the core product.
• ✏️ Chesky reviews all work on a weekly basis as the company's 'chief editor'.
• 👍 Chesky encourages designers to have nerve, simplify everything, and craft excellent experiences that they would want themselves.

Q & A

What realization did Brian have in 2019 about the way Airbnb was being run?

Brian realized that despite his design background, Airbnb had become very conventionally run, with a business unit organization, lots of A/B testing, and increasing costs. He felt Airbnb was losing its creative magic.

How did the COVID-19 pandemic impact Airbnb in early 2020?

Airbnb's business dropped 80% in 8 weeks due to COVID-19. They went from preparing for a hot IPO to questions about whether the company would survive.

How did the COVID crisis lead Brian to rethink how to run Airbnb?

Facing an existential threat, Brian wanted to rebuild Airbnb around what mattered most - its creative spirit. He reorganized around functions, limited projects, elevated designers, and focused on shipping quality products.

Why does Brian believe designers should have more confidence in organizations?

Brian thinks designers undervalue themselves and give away too much ground. Designers should have conviction in their ideas rather than compromising, similar to how lawyers and CFOs carry themselves.

How does Brian view the relationship between marketing, design and engineering?

Brian wants integrated teams where marketing provides vision, design defines solutions, and engineering brings them to life. None are subordinate - it is a harmonious partnership from the outset.

How far ahead is Airbnb's product roadmap planned?

Airbnb plans around a 3 year roadmap, with very clear plans from now until a year out. Beyond 2 years the plans get more tentative. The roadmap is updated weekly.

How did creating an 'Airbnb Blueprint' help improve the product?

Mapping every guest/host journey screen and policy document helped identify pain points. Addressing these systematically through data and user input greatly improved satisfaction.

What is Brian's advice for designers who want to start companies?

Brian encourages designers to have conviction and nerve to build the world they envision. Design skills lend themselves well to conceptualizing new businesses and products that connect emotionally.

How does Brian interpret the role of a designer?

Brian sees design as much more than aesthetics and interfaces. Great designers understand products deeply and can design optimal business models, organizations, and user experiences.

What unique value does Brian believe designers offer?

Brian believes designers offer crucial creativity and human-centered thinking to business problems. They can forge innovative third path solutions between two bad options.