The spectacular fall of Sam Bankman Fried and his organisational anarchy
A new book "Going Infinite" is out on Sam Bankman Fried (SBF) by Michael Lewis (author of The Big Short, Moneyball). It exposes how the lack of corporate structure led to one of the biggest startup meltdowns in history, and is a classic example of the market accepting the eccentric genius narrative.
What we witnessed in the downfall of SBF - from ‘wunderkind’ of crypto and one of the richest people in the world ( $22.5 billion) to convicted fraudster facing 100 years in jail - is nothing short of a parable of organisational madness in action. His spectacular collapse paints a striking picture.
The story reveals how 'Management', in SBF’s own words, was all 'bullsh*t'. He had no real knowledge of his workforce - 300 odd staff, give or take, but nobody knew for sure.
He didn’t know most of his 24 direct reports and your standing in the company was defined by the distance of your chair to SBF himself.
A junior sales exec was hired into the COO role and his personal therapist was hired in a quasi HR role, the Chief Product Officer had no product experience, There was no Chief Financial Officer, Chief Risk Officer, or even HR - critical roles that shape any organisation's success. He also refused to hire an experienced marketing lead, preferring to simply give Tom Brady and other celebs $100s of millions to smile for the camera, The list goes on.
😱 Incredibly, some foundational elements SBF steered clear of include:
➢Org charts - he preferred this to be a puzzle to be figured out
➢Employee records - he had around 300 staff but no one is really sure.
➢Reporting lines
➢Job titles
➢Job descriptions
➢A board of Directors (!)
➢Anyone over 40
Over 100 investment companies backed SBF despite his alarmingly unorthodox approach - the fear of missing out on the next Google was enough for everyone to look the other way.
It’s mInd-blowing 🤯, imagine 300 staff members, not even sure of their roles, job titles, and no clarity on hierarchy!
The debacle illustrates important and essential truths: organisational health is a non-negotiable component for any thriving, dynamic business. In order to grow and succeed, establish a healthy org structure, develop clear reporting lines, and prioritise people strategies.
Feel free to email me for a confidential chat to discuss affordable & flexible ways to bring in experienced HR, Ops, Product or Marketing executives. Keep in mind you have part time & interim options to keep costs down.
Get in touch: ell@santamonica.digital / 07584 022852