Shopify COO Kaz Exits Through The Open Door

A few thoughts on Kaz Nejatian's departure, from my point of view:

* If you are offered the job of CEO for a $5B company, you take it. End of story.

On OpenDoor:

- I have a somewhat dim view of OpenDoor particularly in a supply-constrained housing market. But, I am not a real estate market expert by any stretch.

- I do expect the company to lean on advertising and financial services heavily going forward... because, that is simply how you print money on the interwebs.

- I still find it distasteful the Silicon Valley disdain for employees. Expect Kaz and Keith to "founder-mode" it out the wazoo, leaving a path of employee destruction in their wake. Keith Rabois (new Chairman) goes from unsuccessfully flipping Shopify stores (via OpenStore) to flipping houses? The jury is still out.

On Shopify:

* Leaves a big hole in the Shopify org. Does Bobby report to Tobi now? Asking for a friend.

* To me, I always felt that Bobby reporting to Kaz was extremely atypical and very Shopify-like. Almost indicating to me that Tobi didn't want the smell of Enterprise sales to get too close to him.

If there are org shuffles after this, it will be illuminating regardless.

* I felt that Kaz was always kind of Tobi and Jeff's hatchetman - meaning, here go GSD these things.

Kaz leaving is not singular, there have been many high-profile departures in the last six months. Glen was another giant one who had a great deal of Tobi's trust. (Same with Kaz.)

* In the last 12 months I wrote a piece that Shopify is governed by 3 groups: the rulemakers, the bridge-builders, and the entrepreneurs. It feels to me that the rulemakers are ascendent at Shopify. Which is not great for the culture long-term.

* Going forward, Shopify's booming stock price can almost work against employee retention; if you have been there more than 5 years, well, everyone does has a number. Just look at Kaz.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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