The Functional Consolidation Model
by Brian Chesky • Co-founder & CEO at Airbnb
Co-founder of Airbnb, turning it into an $80B+ global business. A RISD graduate and industrial designer by training, Chesky is known for bringing design-led thinking and non-traditional management structures to the technology sector.
🎙️ Episode Context
Brian Chesky details the radical restructuring of Airbnb that saved the company during the pandemic and defined its current trajectory. He challenges Silicon Valley norms by advocating for a functional organizational structure, the merging of product management with product marketing, and the elimination of the traditional 'empowered' divisional model in favor of a 'CEO as Chief Product Officer' approach. The conversation covers the necessity of leaders being 'in the details,' the shift from performance marketing to brand education, and how to maintain speed at scale.
Problem It Solves
Solves the 'divisional drift' where separate business units create silos, redundancy, politics, and incoherent user experiences.
Framework Overview
A restructuring approach that removes General Managers and divisions, organizing the company strictly by function (Design, Engineering, Marketing, etc.). It centralizes decision-making and ensures experts lead experts.
🧠 Framework Structure
Eliminate Business Units/Divisions: M...
Experts Leading Experts: No generic m...
Centralized Prioritization: Resource ...
Influence over Authority: PMs manage ...
When to Use
Best for companies post-product-market fit that are sensing a slowdown in velocity, increased bureaucracy, or a fracturing of the user experience.
Common Mistakes
Keeping 'people managers' who cannot evaluate the technical or creative quality of the work, leading to a disconnect between leadership and execution.
Real World Example
During the pandemic, Chesky moved Airbnb from 10 divisions back to a functional startup structure, reducing headcount while increasing shipping velocity and profitability.
If you create a division, your division is as successful as you are a priority. So now you have to advocate for your division... that creates what we call politics.
— Brian Chesky