Okta CEO on Scaling to $13B, High-Stakes Decisions, and Market Dynamics
EP 122 of The Logan Bartlett Show: Untold stories from tech's inner circle
In my latest episode, Okta CEO Todd McKinnon dives into the essential lessons he’s learned on high-stakes decision-making, managing up to the board, and competing against tech giants like Microsoft.
Todd also reflects on his journey to founding Okta, his bold choice to team up with a co-founder he hardly knew, and the motivations that have fueled him for over seven years as a public company CEO.
Click here to view the episode transcript | Watch on Youtube | Listen on Spotify or Apple Podcasts
✉️ Episode Memo
→ How founders can strengthen board communication
Early on at Okta, Todd recalls making the mistake of being too passive with the board. He would present issues and ask for input rather than confidently sharing his decision-making process and a clear plan. This approach was ineffective, as the board expects the CEO to lead with clear direction, not to use meetings for brainstorming. He realized the tone needed to shift to, “Here’s what we’re doing, the thought process behind it, the risks and opportunities, and potential ways we might pivot.” Effective board communication involves presenting a well-thought-out course of action, potential risks, and future pivots, rather than merely seeking opinions on challenges.
→ Okta’s approach to high-stakes decisions
One tactic that has worked well for Okta is setting up two teams to present opposing views on big decisions. For example, if they were considering an acquisition, even if Todd was in favor, one team would argue why it’s an excellent idea, while another would argue against it. Each team spends an hour presenting their case, helping to achieve a balanced perspective. Okta uses this approach for product direction, prioritization, people moves, and other compounding decisions.
→ Focusing on customer value to survive
In Okta’s third year, the team struggled to meet expectations, missing a key quarter and facing challenges while trying to raise their Series B. Despite limited signals of success, Todd realized the importance of focusing on true customer value, which he sees as the only reliable indicator of long-term viability. The following quarter, Okta experienced a modest breakthrough, slightly surpassing the sales target and marking a tipping point as market demand began to align with Okta’s vision. Since then, Okta has continued to thrive—even as a single-sign-on product facing intense competition from tech giants like Microsoft—proving the company’s resilience and the strength of its product-market fit.
⭐ Trailer
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