5 surprising leadership lessons from toptal’s ceo

Last month, _The Information’s _Amir Efrati broke the story on how TopTal’s CEO froze co-founders, employees, and investors out of equity. It’s a faux pas of gigantic proportions to screw

over the people that help you along the way, even if it’s all technically legal. Sadly, this happens every day. If only poor leadership were a crime! This episode of This Week In Startups

expressed the righteous anger of a culture that trades on social capital. Naturally, there’s lots of advice for Taso Du Val, TopTal’s CEO (and 100% owner). It can be summed up in 3 words:

DON’T DO THIS. Let’s break it down beyond the obvious. Entitlement may not be the first thing that comes to mind, but it is a core theme at play here. The people who helped make Toptal

successful feel entitled to the equity they were promised. Others like Jason Calacanis agree. Mr. Du Val, it appears, is behaving as if he alone is entitled. Makes us wonder why he would

feel this way. There may be other implications at play most people don’t realize. We don’t know the story behind each of the individuals directly and negatively impacted. However, it is

likely that TopTal was a rare opportunity for some of these folks to improve their socio-economic status, especially if they come from humble beginnings. Sure, some contractors in Third

World countries are making good money, but others (i.e. early employees) clearly lost out. CEOs of Chobani and Gravity Payments “get” how sharing profits is good for employees, the greater

good, and their business. And another thing: when leaders’ actions contradict our values, it doesn’t happen in a vacuum. It becomes a morality problem in our society. They are initiating a

ripple effect that erodes our collective trust in businesses and their leaders. Decision makers must understand that leadership comes with great responsibilities. They should acknowledge

this through their actions. Alas, Mr. Du Val may not be open to the feedback. That leaves the rest of us to take some good out of this in the form of learning. LESSON 1: CULTURE ALWAYS

RULES, PLAN FOR IT Culture isn’t the first thing that comes to people’s minds, but it should be. It’s always there, and it always plays a role. The visceral reaction to Mr. Du Val’s approach

is not just due to a sense of right and wrong. It’s a culture saying THIS IS UNACCEPTABLE. In this case, it’s that verbal agreements are honored, you reward those that deserve it, and there

are multiple rounds of funding when your agreements refer to them. That’s why there’s talk of creating a “revenge startup” and the spread of #boycotttoptal to hold this company and it’s CEO

accountable. The lesson here is to INCORPORATE THE CULTURE INTO ALL YOUR DECISIONS AS A LEADER. If what you are planning is counterculture in good ways or bad, you either figure out how to

change the culture, or expect it will bite back. LESSON 2: THE REASON FOR DOCUMENTATION (IT’S NOT WHAT YOU THINK) Toptal folks would have more recourse if they had things in writing. That’s

not the surprising part. The reason is WHY they should’ve made their implicit contracts explicit. The legitimacy of all contracts comes from having equal commitment to the _same point of

view _on the terms, the relationship, and follow through. Any breakdown along the way leads to conflict and breeds distrust. Doing a good job collaborating on writing things down (and I mean

good) _VALIDATES _EVERYONE’S UNDERSTANDING AND BUILDS TRUST from the beginning. LESSON 3: KNOW WHEN TO CUT YOUR LOSSES AND LEAVE Some Toptal co-founders and employees stuck around hoping

they would be justly rewarded. Others left sooner. Did they stick around too long, or did they leave too soon? To achieve the “just right” for each person, here are some things to consider:

* How hard did you try to make it work? Was there anything that could be held against you? This is the dignity check. You are good as long as you can look at yourself with no regrets. * Were

you able to achieve the work experience you needed and/or anticipated? This is the one thing that you can always keep and no one can take away from you. Do what you can to get the most out

of it. * Did you decide to leave after thoughtful contemplation and planning? Or was it an emotional response to being mistreated? Practicing mindfulness without judgment will allow you to

strategize your path forward toward optimal outcomes. Not everything will be in your control, but make sure you affect what you can affect. LESSON 4: PRACTICE INTEGRITY & SELF

IMPROVEMENT TOGETHER The lesson to learn when there is a situational risk of exposure (like in this case) is for a leader to demonstrate two values in particular: Integrity & Self

Improvement. The first will compel you to make it right and the second will help you learn from it. You get a chance to influence the situation for the better and increase the chances for a

positive resolution. On the other hand, leaving risks unaddressed too long will bring you to a point when you won’t have a say. Exposure is inevitable in most cases. Read the news if you

don’t believe me. Or ask Taso Du Val. The narrative is now out of his control and it’s much tougher now to turn things around. So make sure integrity is behind everything you do, mistakes

are something you transparently own, and you actively learn your way to being a better leader. LESSON 5: YOUR REPUTATION CAN HURT OR HELP What goes around comes around and memories are long.

Having a stellar reputation cultivates strong relationships and creates more opportunities. A bad reputation does the opposite. It looks like it will be a hard sell for knowledgable

co-founders, investors, and employees to work with Taso Du Val on any new ventures in the future. His reputation has suffered. To learn this lesson the easy way: * Ask yourself, “How would

_others _describe my reputation?” * Determine the reputation you want. Then work toward closing the gap between where you are today and where you want to be. * Help others along the way,

especially those who helped you. Social capital will take you far. YOUR TURN No one knows where this Toptal saga will lead, but those of us here in the peanut gallery can look to this one

example, apply the learning to our own lives, and make a positive difference where others do not. Where do these lessons apply in your life? How will you go about it differently? If you like

what you see here, check out my other articles and my website. _About the Author_ _Karen was a successful executive before pursuing a ‘portfolio career’ of research, writing, consulting,

teaching/speaking, and creative pursuits. As a versatile cross-industry leader, she spearheaded numerous global initiatives. Today, this East Coast transplant to Silicon Valley (via Ireland

and the Midwest) is principal of __Co.-Design of Work Experience__, where she enables organizations with innovative approaches and customized solutions for intimidating organizational

challenges. Her book, __Culture Your Culture: Innovating Experiences @Work __was released in June 2018. She has a BA in Ethnic and Cultural Studies (Bryn Mawr College) and a MA in

Social-Organizational Psychology (Columbia University)._