Hiring for Maximum Leverage, AI Impact on How People Work and Big Ideas for 2025+

They identify the right problem and get it solved.

Good morning

In today's edition, among other things:

• The Triage of Talent: Hiring for Maximum Leverage

• AI Impact on the Way People Work

• Big Ideas 2025+

• Employee Option Pool by Stage

• How Do You Deflect An Asteroid?

• Complete Guide to Board Rooms

• How AI Changes Customer Acquisition

• When to Hire a CFO

Onwards!

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The Triage of Talent: Hiring for Maximum Leverage

Startups live and die by talent. The right people can 10x your trajectory; the wrong ones can burn your cash and momentum. Yet, most founders and managers struggle with hiring, structuring, and managing teams effectively. It’s both the most important and most difficult thing you need to do.

The Triangle of Talent framework from this post is great to wrap your mind around thinking about talent (it helped me make some critical decisions in the last few days).

The framework breaks employees into five levels:

1. Level 1: Useless – Even with instructions, they struggle to get things done correctly.

2. Level 2: Task Monkey – They execute exactly what you tell them to do, but nothing more.

3. Level 3: Problem Solver – You give them a goal, and they figure out how to achieve it.

4. Level 4: Systems Thinker – They build repeatable processes that solve problems at scale.

5. Level 5: Superstar – They identify the right problems to solve and drive them to completion.

Most companies over-index on hiring “doers” (Levels 2 and 3) and underestimate the value of systems thinkers. Startups operate under extreme constraints—capital, time, talent—and need people who create leverage.

• Hiring more Level 2 employees increases headcount but not output. If every task needs to be micromanaged, the business stalls.

• Level 3 employees are better but still reactive—they solve the problem in front of them but don’t proactively change the system.

• Level 4 and 5 employees create real leverage—they design processes, automate workflows, and redefine the problems you’re solving.

Level 4 and 5 employees are what you should be after, both system thinkers and doers who understand the power of leverage.

For early-stage startups (seed to Series A), your team should be top-heavy in Level 5 talent. The goal isn’t to hire lots of people but to bring in individuals who can identify and execute the most impactful opportunities.

This is the most common mistake that many of us building companies have made.

A rough guideline:

• Solo founder: You must be Level 5. If you’re spending time as a Task Monkey, you’re building the wrong company.

• Small team (5–20 people): At least 30% of your team should be Level 5s. The rest should be a mix of Level 3 and 4.

• Medium-sized team (20–150 people): You can scale down Level 5s to 15% while increasing Level 4s (Systems Thinkers) to drive efficiency.

• Large company (150+ people): Ideally, 5–10% are Level 5s, but bureaucracy often gets in the way—this is why startups outmaneuver incumbents. Wise leaders or not satisfied with 5%.

How to Spot a Level 5?

It’s about how they think and act in uncertainty. Level 5 employees:

• Proactively identify bottlenecks before they become roadblocks.

• Operate autonomously and don’t need hand-holding.

• Have strong judgment—they know which fires to put out and which to ignore.

• Think in systems—instead of solving the same problem twice, they automate or delegate.

You will know immediately if you have ever worked with a level 5 person. Everyone else is just a compromise on quality.

What to Do If You’re Stuck with Low-Level Employees

First of all, you are never stuck if you are in a leadership position. You are just not making a decision. Not every hire will be a home run. Here’s what I think it’s smart to do: