Designing a Company Around Life Profitability — Geoff Roberts

TKS Podcast #32

Update

Substack has released a new feature that allows me to create multiple newsletters, and I'm excited to introduce one dedicated to my podcast, The Karnjanaprakorn Show.

As a reminder, I’m Michael Karnjanaprakorn, the former founder and CEO of Skillshare and Otis. I’m figuring out my next thing and sharing what I learn along the way.

On TKS, I chat with founders who take unique approaches to life and business as I explore my next steps. Currently, I average 1-2 interviews per month, and this newsletter will feature each episode, along with key takeaways and relevant links.

If you're interested, there's nothing you need to do—stay subscribed. If not, feel free to unsubscribe from the podcast updates using the link below.

Episode

In this episode, I chatted with Geoff Roberts about how they designed the company at Outseta, where they do things differently. Everyone makes $210,000 and can choose to work one to five days a week. They operate without budgets, targets, or OKRs, maintaining a flat hierarchy with no bosses. The company prioritizes life profitability for both the team and customers. Geoff discusses the motivation behind these decisions and how a high-trust, fully transparent work environment facilitates this unique culture.

Takeaways

1. Life Profitability — Prioritizing the well-being of both employees and customers is key. If you want to attend your kid's soccer game in the middle of the workday, go for it. Once you focus on life profitability, it will inevitably change how the entire company is run.

2. Pillars — To achieve something this radical, you can’t just try one thing. All the pieces tie together and serve as a check-and-balance. The pillars of this unique culture revolve around high trust and full transparency.

3. Standardized Compensation — Everyone at the company earns the same salary of $210K, with the flexibility to work anywhere from one to five days a week. This promotes fairness and attracts and retains top talent. They have thousands of applicants for a handful of roles!

4. Flat Hierarchy — The company operates without budgets, targets, or OKRs. There are no bosses or managers, emphasizing autonomy, ownership, and high trust among employees.

5. Democratic Decision-Making — Major decisions, such as a potential acquisition, are voted on by all employees. Each employee’s vote carries equal weight, regardless of equity stake.

Guest

Geoff is the co-founder of Outseta, an all-in-one membership software that makes it easier to build SaaS products, membership sites, and online communities.

• Learn more about their unique culture: https://www.outseta.com/what-were-about

• Follow Geoff on Twitter: @geoffroberts

Chapters

• 00:00 Intro

• 03:57 Bootstrapping

• 05:21 Ambition & Lifestyle

• 06:45 Life Profitability

• 13:52 $210,000 Salary

• 19:37 Flat Hierarchy

• 23:42 Resolving Conflicts

• 27:42 Attracting Talent

• 29:36 Lessons

• 32:18 Living Abroad

• 38:38 Advice

Wrapping Up

The main lesson from this whole conversation is that you can design your company in any way you choose. If you value freedom and flexibility, financial independence, and having fun… why not integrate these values into work?

Until next time,

Michael