Leadership Lessons from a $30B Startup IPO | Snowflake CFO, Mike Scarpelli

Summary

Mike Scarpelli, CFO of Snowflake, Inc., shares his career journey from growing up in a blue-collar family to leading major companies like Data Domain, ServiceNow, and Snowflake. He emphasizes a strong work ethic, the importance of decisive leadership, and building trust within teams. Scarpelli highlights the value of real-time collaboration, offers insights on effective negotiation, and stresses the significance of mentorship. He also advocates for hiring for future potential rather than current roles, while being cautious of title inflation in startups. His leadership philosophy focuses on autonomy, responsibility, and creating a culture of growth.

Takeaways

• 😀 Focus on independence: Don't micromanage your team. If you're micromanaging, it's a sign that you may be about to let someone go.
• 😀 Trust and empowerment: Encourage employees to come up with solutions, share their thoughts, and show initiative. A thoughtful opinion builds trust.
• 😀 Hard work pays off: A strong work ethic and persistence in the early years, like working long hours, can be crucial for career success.
• 😀 Work-life balance isn't the priority for top executives: If work-life balance is a major concern, executive roles like CFO might not be the right fit.
• 😀 Learning from tough situations: Difficult career moments, such as dealing with fraud, can be valuable learning experiences that shape negotiation skills.
• 😀 Negotiation is about balance: In vendor or settlement negotiations, both parties should feel good about the deal. It's about finding a win-win situation.
• 😀 Be bold in decisions: Stand firm on key priorities, as demonstrated in the case with Berkshire Hathaway and the Snowflake IPO.
• 😀 From doer to coach: As you progress in your career, shift from being the person doing everything to being a mentor and guiding others.
• 😀 Feedback through performance: Quarterly bonuses should reflect individual performance, offering clear feedback for growth and improvement.
• 😀 Avoid title inflation: Be mindful when hiring; hiring based on future roles rather than current positions will avoid potential conflicts and encourage growth.

Q & A

What is Mike Scarpelli's approach to managing employees?

Mike Scarpelli believes in not micromanaging employees. He values employees who take ownership of their work and come to him with thoughtful opinions and solutions. He encourages autonomy and only steps in when necessary, such as when he feels that an employee is not doing their job properly.

How does Mike Scarpelli view work-life balance for executives?

Mike Scarpelli is not particularly concerned with work-life balance for executives. He mentions that during his 20s, he worked every weekend and suggests that anyone seeking a strong work-life balance likely shouldn't pursue high-level executive roles, particularly CFO positions.

What does Mike Scarpelli think about negotiation in business relationships?

Mike emphasizes the importance of negotiations that benefit both parties. He believes that in long-term business relationships, the aim should be to reach a win-win deal, whereas in one-time settlements, it’s essential to secure the best deal possible, and sometimes, being willing to walk away is crucial.

Can you share an example of how Mike Scarpelli handled a tough negotiation?

An example of a tough negotiation Mike handled was when Snowflake was going public, and Berkshire Hathaway wanted to invest. They initially refused to have their name on the cover of the S-1 filing, but Mike insisted on it. Despite concerns, he stood firm, and eventually, Warren Buffett agreed to have the name on the cover, making it a landmark decision.

What was Mike's experience working at HPL Technologies?

Mike joined HPL Technologies in a corporate development role but found himself cleaning up a massive corporate fraud scandal. He learned a great deal about negotiation during this time, having to settle various lawsuits and deal with SEC investigations and an FBI inquiry.

What lesson did Mike Scarpelli learn from his time at HPL Technologies?

The key lesson Mike learned at HPL was the importance of understanding the full scope of a problem and learning to negotiate settlements. Despite the tough experience, he viewed it as a valuable learning opportunity, especially in terms of resolving issues and protecting his reputation.

How does Mike Scarpelli approach leadership as the company grows?

As a company grows, Mike Scarpelli sees his role shifting from a hands-on contributor to a coach. At early stages, like at Data Domain, he was heavily involved in both the business and operational sides. As the company scaled, he viewed himself more as a coach, guiding employees and helping them navigate challenges.

What advice does Mike give about hiring in startups?

Mike advises that startups should avoid title inflation and hire people who can grow into their roles, rather than hiring for the present. He suggests promoting employees after they’ve proven themselves, which avoids internal conflicts and ensures that people earn their titles.

What is Mike Scarpelli's view on remote work?

Mike is not a fan of remote work, especially after the early days of COVID. He believes that real-time, in-person collaboration is essential for learning and development, and remote work can reduce the energy and productivity of employees, especially on Mondays and Fridays.

What does Mike Scarpelli believe is the key to successful mentorship in business?

Mike believes that successful mentorship involves being accessible, showing care for employees' development, and acting as a coach. He stresses that leaders should foster growth by providing guidance and feedback that helps employees learn and develop their careers.