The Hard Thing About Hard Things

"What makes the hard things hard is that there is no formula for dealing with them." – Ben Horowitz

1. The Struggle is an Inevitable Part of Leadership

Leading a company comes with the reality of The Struggle—a term Ben Horowitz uses to describe the stress, indecision, and hardships that CEOs face. He argues that no business journey is smooth, and crises are unavoidable as companies navigate challenges ranging from economic downturns to internal missteps.

Horowitz emphasizes that The Struggle doesn’t just affect the business; it impacts the leader’s mental health, physical well-being, and personal relationships. Leadership can feel isolating, as success or failure ultimately falls squarely on the CEO’s shoulders. Accepting this reality is the first step to enduring and thriving through it.

The silver lining, Horowitz argues, is that The Struggle often reveals greatness. Facing adversity forces leaders to grow, define their vision, and drive their teams forward with resilience. By meeting these challenges head-on, CEOs can transform their businesses and themselves in profound ways.

Examples

• CEOs dealing with broader crises, such as the dot-com bubble collapse, often face significant investor and market fallout.
• A wrong hiring decision can affect the entire organization, leading to team disruption and mistrust.
• Leaders who endure The Struggle typically earn long-term respect and credibility for their perseverance.

2. Honest Communication Can Save Your Business

Ben Horowitz stresses the importance of open, transparent communication, especially during crises. He warns against hiding bad news, as it creates mistrust, gossip, and delays in finding solutions.

Sharing challenges directly with employees enables collaborative problem-solving, ensuring the entire organization focuses on addressing issues. Horowitz highlights that bad news travels quickly—failing to acknowledge it exacerbates harm. Instead, leaders who confront problems openly maintain employee trust and mobilize their teams effectively.

Discussing bad news honestly also improves decision-making efficiency. By bringing in relevant experts or teams immediately, CEOs can analyze crises faster and adapt. Transparency signals leadership confidence, inspiring trust and teamwork amid uncertainty.

Examples

• When Opsware faced the dot-com crash, Horowitz convened his entire team to explain the situation honestly, rallying them for a difficult product overhaul.
• CEOs withholding information often lead to organizational confusion, where rumors and anxiety supersede focus on solutions.
• Discussing market shifts or customer challenges early lets specialists explore technical and strategic options in real-time.

3. Reducing Layoffs' Impact Requires Speed and Fairness

Sometimes layoffs are unavoidable, but Horowitz notes they’re best handled swiftly and empathetically. Delaying announcements creates uncertainty, hurts morale, and harms trust. Word often leaks, and employees left guessing become distracted and demoralized.

In addition to acting quickly, CEOs must ensure fairness. This includes offering affected employees decent severance and clear, respectful explanations. When layoffs occur due to missed company goals, leaders should admit failure, showing accountability while shifting focus toward improvement.

Ultimately, how layoffs are executed reflects on the CEO and shapes company culture. Leaders who treat those departing with dignity foster goodwill and morale among remaining employees, preserving long-term trust and reputation.

Examples

• Announcing necessary layoffs immediately prevents speculation and keeps managers credible.
• Fair compensation packages and public acknowledgment of company failures maintain respect for leadership.
• Companies with transparent layoff processes find it easier to attract and retain talent in the future.

4. Firing Executives Requires Dignity and Ownership

Letting go of senior executives is one of the hardest decisions a CEO can make. Horowitz believes the key is taking responsibility for the hiring mistake while ensuring smooth operations during the transition. Leaders must analyze hiring missteps to avoid repeating them and maintain the organization’s continuity.

Respecting the outgoing executive’s dignity is also essential. Treating them fairly ensures the remaining leadership team stays motivated and cooperative. Firing should not be about performance debates but about leading the company toward its best interests.

To preserve stability, the CEO may need to temporarily fill the departing executive’s role. This shows leadership accountability and reassures employees of the company’s ongoing functionality.

Examples

• Documenting the root cause of a hiring error shows organizational learning and improves board confidence.
• Fair severance plans and maintaining mutual respect keep morale intact for the rest of the team.
• A hands-on transition period demonstrates that company priorities remain intact despite leadership changes.

5. Invest in People Through Training and HR Structure

Horowitz emphasizes that people are a company’s most important asset. Building strong HR systems and providing robust employee training are essential for long-term success. HR teams act as the organization’s pulse, identifying unseen problems like uncompetitive salaries or gaps in workplace culture.

Tailored training programs develop employees' necessary skills within the company’s unique context. Functional training enhances goal execution, while management training improves team leadership, feedback, and alignment.

These practices strengthen organizational trust, capability, and retention, fostering a work environment where employees thrive—and, by extension, so does the company.

Examples

• An HR system can flag staffing trends, like high turnover, enabling corrective measures.
• Functional training prepares employees for roles by tailoring them to organizational procedures and tools.
• Management training ensures team leaders deliver consistent coaching and performance feedback.

6. Hire for Strengths, Not to Avoid Weaknesses

When making hiring decisions, Horowitz argues that CEOs should prioritize candidates’ strengths rather than rejecting them for perceived flaws. The right combination of skills and determination often outweighs cultural or stylistic differences.

Leaders should also match candidates' experience to the company’s size and stage. A mismatch in rhythm—between fast-paced small firms and more structured corporate environments—can hinder productivity if overlooked.

By considering a person’s unique strengths and aligning roles with their capabilities, CEOs can build powerful teams poised for success.

Examples

• Horowitz hired a strong sales manager, Mark Cranney, despite concerns about his personality, valuing his skillset above reservations.
• Executives from large firms may struggle in startup environments without creating their tasks, leading to mismatched expectations.
• Tailored roles ensure employees’ strengths directly align with their responsibilities, boosting effectiveness.

7. Eliminate Office Politics Through Transparency

Horowitz advises creating environments where ambition aligns with the company’s success rather than individual gain. Transparent processes like standardized performance reviews can reduce favoritism and backdoor promotions.

Additionally, clearly defining job titles and salary expectations helps employees understand their value and path within the organization.

Fostering a positive work culture requires communication and collaboration, allowing teams to focus on collective achievement instead of political maneuvering.

Examples

• Google’s promotion processes use clarity and transparency to minimize unfair advancements.
• CEOs cultivating team-oriented mindsets among executives deter self-serving goals.
• Standardizing organizational procedures builds fairness and equality across teams.

8. Peacetime vs. Wartime CEOs: Choose Based on Context

A company’s circumstances dictate its CEO’s approach. Peacetime CEOs focus on growth, employee creativity, and maximizing market advantage. Wartime CEOs, by contrast, face existential threats, requiring bold decisions and unwavering resolve.

Horowitz introduces these archetypes so leaders can adapt as needed, guiding their organizations smoothly during good times and reacting decisively during crises.

Examples

• Google’s focus on fostering innovation exemplifies peacetime leadership during periods of tech dominance.
• Andy Grove’s decision to shift Intel into microprocessing illustrates wartime leadership in response to fierce competition.
• CEOs mastering these modes navigate shifting business environments more effectively than rigid leaders.

9. Learning to Be a CEO Requires Stretching Beyond Comfort

CEOs are not born—they grow through ongoing challenges. Horowitz says leaders must own their personal style while staying open to learning discomforting skills like evaluating performance or delivering hard feedback. Authenticity develops trust and effectiveness.

Using methods like the “shit sandwich” (balancing tough conversations with positives) helps CEOs deliver constructive criticism while keeping morale high. Additionally, repeated exposure to challenges eventually makes unnatural tasks feel second nature.

Growth as a CEO stems from adaptability and a willingness to embrace the uncomfortable when it improves the organization.

Examples

• Horowitz’s use of authentic communication, including humor, helps align his teams effectively.
• CEOs delivering clear performance reviews maintain accountability across organizations.
• Fostering constructive feedback loops builds high-performing cultures across levels.

Takeaways

1. Embrace the challenges of The Struggle as opportunities to grow and lead with resilience.
2. Develop transparent communication practices to address problems and build trust within your team.
3. Adapt leadership styles based on company needs, balancing creativity and decisiveness to navigate different business climates.