Portfolio Allocation Framework
Scaling Yourself: The LEGO Principle
Core Principle: If you want to grow as fast as your company, give away your job every 3-6 months.
The LEGO Analogy
You're Building Alone
┌─────────────────┐
│ ████████████ │ Too many LEGOs!
│ ████████████ │ Can't build it all
│ ████████████ │ You're the bottleneck
└─────────────────┘
Sign it's time to hire: You're the critical path for everything
After You Hire
┌─────────────────┐
│ Your LEGOs → │
│ New hire│
│ │
│ New tower ← You │
└─────────────────┘
The secret: Give away your LEGOs, find bigger ones
When to Hire: Bottleneck Detection
✅ Hire When You See These Signs
- [ ] You're the blocker: Team waiting on you for decisions/reviews
- [ ] Reactive mode: No time for strategic work
- [ ] Opportunity cost: Saying "no" to high-impact projects
- [ ] Quality suffering: Cutting corners due to time pressure
- [ ] Burnout risk: Working nights/weekends consistently
❌ Don't Hire Yet If
- [ ] You can automate it: Build the tool instead
- [ ] It's temporary: Project-based spike in work
- [ ] You haven't documented it: Can't hand off what isn't written
- [ ] No budget/revenue: Can't support the salary
- [ ] Role unclear: Don't know what they'd do day 1
The Handoff Framework
1. Document Everything (Week 1-2)
Before hiring, make the role hireable:
- [ ] Runbooks: Step-by-step procedures
- [ ] Decision trees: How to handle edge cases
- [ ] Access/permissions: What they'll need
- [ ] Success metrics: How to measure their impact
- [ ] Why it matters: Context for the work
Platform parallel: Your infrastructure-as-code before scaling
2. Contract-to-Hire (Week 1-4)
Staging environment for humans:
- [ ] Trial project: 4-week paid contract
- [ ] Real work: Not fake interview problems
- [ ] Working relationship: Do you collaborate well?
- [ ] Decision criteria: Clear hire/no-hire reasons
- [ ] Exit plan: How to end respectfully if not a fit
Why it works: See them under real pressure before committing
3. Gradual Handoff (Week 1-12)
Don't drop everything at once:
- Week 1-2: Shadow you, learn the ropes
- Week 3-4: Paired work (you + them)
- Week 5-8: They lead, you review
- Week 9-12: They own it, you're consulted
Platform parallel: Blue-green deployment for human responsibilities
4. Find Bigger LEGOs (Ongoing)
What's your next level:
- [ ] Strategic thinking: Quarterly planning vs. daily execution
- [ ] Team building: Hire the next 3 people
- [ ] Fundraising: Talk to investors
- [ ] Partnerships: Business development
- [ ] Product vision: Where are we going?
Hiring Evaluation Framework
Technical Bar (Table Stakes)
- [ ] Can they do the work? Demonstrated skill
- [ ] How do they learn? Adapt to new situations
- [ ] Code quality: See their actual work
- [ ] Communication: Can they explain complexity?
Cultural Fit (What Matters More)
- [ ] Values alignment: Do they match your MVV?
- [ ] Working style: Async vs. sync, deep work vs. meetings
- [ ] Conflict resolution: How do they disagree?
- [ ] Autonomy level: Need guidance vs. self-directed
- [ ] Growth mindset: Fixed vs. learning orientation
Interview Test: "Explain This Complex Thing"
Best single question:
- "Explain [complex topic in your domain] to me like I'm a new engineer."
What you're testing:
- Clarity: Can they break down complexity?
- Patience: Do they rush or teach well?
- Depth: Do they actually understand it?
- Empathy: Do they meet the learner where they are?
First 90 Days: New Hire Onboarding
Week 1-2: Context & Culture
- [ ] Mission/Vision/Values: Why we exist
- [ ] Product deep dive: What we build, who we serve
- [ ] Codebase tour: Architecture, key systems
- [ ] Meet the team: 1:1s with everyone
- [ ] Quick win: Ship something small week 1
Week 3-4: Ramp-Up
- [ ] Paired programming: Work together daily
- [ ] On-call shadow: Learn systems under pressure
- [ ] Customer calls: Hear pain directly
- [ ] Retrospective: What's working, what's not?
Week 5-12: Ownership Transfer
- [ ] Solo projects: They lead, you review
- [ ] On-call rotation: They're in the rotation
- [ ] Decision authority: Define what they can decide
- [ ] Teaching others: Can they onboard the next hire?
90-Day Check-In
Ask:
1. "What's clearer now vs. day 1?"
2. "What's still confusing?"
3. "What would you change?"
4. "Do you want to stay?"
Red Flags During Trial Period
Performance Red Flags
- [ ] Can't ship: Projects stall, no output
- [ ] Quality issues: Bugs, tech debt, shortcuts
- [ ] Not learning: Same mistakes repeatedly
- [ ] Scope creep: Can't finish what they start
Culture Red Flags
- [ ] Values misalignment: Actions contradict MVV
- [ ] Poor communication: Team doesn't know what they're doing
- [ ] Conflict avoidance: Won't speak up about problems
- [ ] Ego over team: Credit-seeking, blame-shifting
What to Do
If 1-2 red flags: Coach them, give feedback, set clear expectations
If 3+ red flags: Part ways respectfully at end of trial
Key: Don't hope it gets better. It won't. Trust your gut.
Delegation Matrix
Use this to decide what to keep vs. hand off:
| Task Type | You | Delegate | Automate |
Example: Your Week
Keep:
- Fundraising pitch to lead investor (high impact, only you)
- Key customer escalation (high impact, relationship-based)
Delegate:
- Code reviews (high impact, team can do)
- Customer support (high impact, others can do)
- Hiring screens (high impact, can train others)
Automate:
- Deployment pipeline (low impact, repetitive)
- Metrics dashboards (low impact, repetitive)
- Reporting (low impact, repetitive)
Equity & Compensation
Early Hire Guidelines (Employee #1-10)
- Cash: Below-market salary ($80K-$120K for senior roles)
- Equity: 0.5%-2% depending on role and timing
- Vesting: 4-year vest, 1-year cliff
Equity Calculation Framework
Factors:
1. Risk: Earlier = more risk = more equity
2. Impact: How much value will they create?
3. Market: What do they make elsewhere?
4. Replacement cost: How hard to replace?
Common Mistakes
- Too little equity: They leave for more stable job
- Too much equity: Cap table mess for future fundraising
- No cliff: They quit at 6 months with equity
- No docs: Verbal promises cause lawsuits
Use a startup lawyer. Worth every penny.
Firing Well (When It Doesn't Work)
When to Part Ways
- [ ] Trial period ends: Red flags not resolved
- [ ] Culture violation: Serious MVV misalignment
- [ ] Performance: Consistent underperformance despite feedback
- [ ] Company changes: Role no longer needed
How to Do It
1. Quick decision: Don't drag it out
2. In person: Video call minimum, in-person if possible
3. Clear reason: No surprises, feedback already given
4. Generous severance: 2-4 weeks minimum
5. References: Offer to be a reference (if appropriate)
6. Exit logistics: Return equipment, offboarding checklist
Key: Be kind, be firm, be fast. Don't negotiate the decision.
Resources
- The Alliance by Reid Hoffman: Tours of duty framework
- Who by Geoff Smart: Hiring methodology
- Radical Candor by Kim Scott: Feedback framework
- ‘Give Away Your Legos’ and Other Commandments for Scaling Startups by Molly Graham
Download all 12 templates: sanscourier.ai/qconsf-2025
*From the QCon SF 2025 talk: "From Staff Platform Engineer to a16z Founder: What I Wish I'd Known" by Gonzalo (Glo) Maldonado*