Ben Horowitz, the co-founder and general partner of Andreessen Horowitz, is one of the most experienced tech leaders in Silicon Valley.

He played a major role in creating Netscape in the 90s, and was the CEO of Opsware, a company that was later sold to HP for $1.6 billion in 2003.

His VC firm Andreessen Horowitz has invested in some of the hottest startups, including Facebook, Twitter, Airbnb, and Lyft. 

With so much experience, Horowitz has many interesting stories to tell, which he often shares through his personal blog. He even published a book titled, “The Hard Thing About Hard Things,” based on his own experience.

Last week, Horowitz spoke at Stanford for “How to Start a Startup,” a course run by Y Combinator’s Sam Altman, and explained the importance of having “one management concept.”

We pulled out some of the slides from Horowitz’s presentation and put together his advice on how to deal with employee demotion and what to do when someone asks for a raise.

“This management concept is the thing I see CEOs mess up more consistently than anything else…It’s the easiest thing to say and the most difficult to master.”

“When making critical decisions, you have to be able to see the decisions through the eyes of the company as a whole…Otherwise, your management decisions could have potentially dangerous consequences.”

For example: How do you whether to demote or fire someone?

For instance, what do you do when you have an executive who works hard and is well-liked, but doesn’t have the skills to take your company to the next level? Demote or fire?

See the rest of the story at Business Insider

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