Enterprise

How Automattic Grew Into A Startup Worth $1 Billion With No Email And No Office Workers

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Matt Mullenweg
WordPress creator and Automattic founder Matt Mullenweg  Kevin Abosch

Of all the cool work cultures we've ever heard of, none is more impressive than Automattic, the company responsible for the popular blogging platform, WordPress.

Automattic is so unusual, it's the subject of a new book "The Year Without Pants" by its employee Scott Berkun. Berkun is a former Microsoft employee who documented how Automattic grew into a 190-employee company with a $1 billion valuation, while nearly all employees work from home.

Even though the company has a gorgeous San Francisco office, Automattic doesn't consider location when hiring employees. Workers are scattered across 141 cities and 28 countries and get a $2,000 stipend to decorate or improve their home offices (in addition to a new Mac and other tech equipment), WordPress creator and Automattic founder Matt Mullenweg told Business Insider.

The company also has a huge travel budget. Any team can meet whenever they want for a "hack week" in any location in the world like Tokyo, Athens, Kauai, San Francisco, Amsterdam, or Sydney.

In his book, Berkun describes his first team meet up, in Athens:

Who gets on a plane to meet with coworkers in ATHENS? ... It never entirely made sense to me why we were there, but the effect of it was clear: we were all energized, inspired, and ready to earn our trip to an amazing place.

As for daily work, the company uses chat rooms, Google Hangout video, and its own blogging tools instead of email and conference-room meetings. In this way, they update and support WordPress, which is open source software. Open source is a way of writing software in a community. Anyone in any location who uses the software can write code for it, employee or not.

We asked Mullenweg to tell us more about running Automattic this way:

Business Insider: When did you realize it was better not to use email, have meetings or have everyone in the same office?

Matt Mullenweg: At Automattic we knew we didn't need to be in the same place from day one, as the first four Automatticians were all in different cities around the world. We had been working together for a long time already on the open source WordPress project, which like almost all open source projects takes contributions from all over the world.

Email came a few years later. Around 2009, about four years after the company started, we found ourselves using email a lot and our blog not that much, so we decided to turn the concept of a blog on its head and make it easy to post and have a conversation without ever leaving its home page, that became P2. (Editor's Note: P2 is like a combo Tumblr/Yammer blog and comment service.)

BI: How can a company that begins as a meritocracy, when it's small and everyone knows each other, continue to be a meritocracy as it grows and everyone no longer knows each other in person?

MM: You don't need to know someone personally to be able to discern whether their work is high quality or not. The idea of a meritocracy is that it's what they do, not who they are. Also, when you work with someone closely you get to know them well, and we do bring teams together three to four times a year so they can spend time together in person for fun and brainstorming.

Automattic Meetup Greece
Automattic team meetup in Greece  Automattic

BI: Is there a different attitude toward "failing" and "success" at your company than at other software companies? What does it mean to succeed? What is the attitude toward failure?

MM: We try to orient not toward success or failure, but toward speed of iteration, which I feel leads to success in the long term. Since we can move quickly, something is only a failure if we didn't learn something from it or if it took too long.

BI: What's the biggest lesson from your company's culture that other managers can use, even if they don't work in typical companies, that use email, have meetings, etc.?

MM: It's hard to reduce it down to one thing, but I think regardless of what tools you use to communicate if you give people autonomy to execute on something meaningful, and bias the environment to moving quickly, amazing things can happen.

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.