How to build a company that withstands any era | Eric Ries, Lean Startup author

Eric Ries, author of *The Lean Startup*, released a new book titled *Incorruptible* that examines why successful companies become corrupted into mediocrity and how governance structures can protect their mission. Ries notes that 80% of venture-backed founders are ousted within three years of going public, and points to companies like Anthropic, Costco, and Novo Nordisk as examples of mission-aligned organizations that benefit from protective governance. The book offers a simple two-page legal filing as a potential solution for founders seeking to safeguard their companies against financial gravity and external pressures.

Eric Ries is the author of The Lean Startup , a book that reshaped how a generation of founders think about building companies. His new book, Incorruptible , explains how successful companies are destroyed by failing to protect what makes them valuable, and how to change it. Listen on YouTube, Spotify, and Apple Podcasts In our in-depth conversation, we discuss: Why 80% of venture-backed founders are ousted within three years of going public The governance structures that protect companies like Anthropic, Costco, and Novo Nordisk The simple legal filing that takes two pages and could save your company Financial gravity: why successful companies predictably get corrupted into mediocrity Why mission-aligned companies like Anthropic reap major benefits from protecting their mission through governance Why success won’t protect you—it instead makes you a bigger target Brought to you by: WorkOS —Make your app enterprise-ready, with SSO, SCIM, RBAC, and more Vanta —Automate compliance, manage risk, and accelerate trust with AI Where to find Eric Ries: • LinkedIn: https://www.linkedin.com/in/eries https://www.linkedin.com/in/eries • Website: https://www.incorruptible.co https://www.incorruptible.co • Newsletter: https://news.theleanstartup.com/ https://news.theleanstartup.com/ • Podcast: https://ericriesshow.com https://ericriesshow.com • YouTube: https://www.youtube.com/@theericriesshow https://www.youtube.com/@theericriesshow%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0 Referenced: • Reflections on a movement | Eric Ries creator of the Lean Startup methodology : https://www.lennysnewsletter.com/p/reflections-on-a-movement-eric-ries https://www.lennysnewsletter.com/p/reflections-on-a-movement-eric-ries • How Anthropic’s product team moves faster than anyone else | Cat Wu Head of Product, Claude Code : https://www.lennysnewsletter.com/p/how-anthropics-product-team-moves https://www.lennysnewsletter.com/p/how-anthropics-product-team-moves • Quibi: https://en.wikipedia.org/wiki/Quibi https://en.wikipedia.org/wiki/Quibi • Vital Farms: https://vitalfarms.com https://vitalfarms.com • BlackRock: https://www.blackrock.com https://www.blackrock.com • Costco: https://www.costco.com https://www.costco.com • Cloudflare: https://www.cloudflare.com https://www.cloudflare.com • “The best time to plant a tree” quote: https://quoteinvestigator.com/2021/12/29/plant-tree https://quoteinvestigator.com/2021/12/29/plant-tree • Whole Foods: http://wholefoodsmarket.com http://wholefoodsmarket.com • Marie Krogh: https://en.wikipedia.org/wiki/Marie Krogh https://en.wikipedia.org/wiki/Marie Krogh • August Krogh: https://en.wikipedia.org/wiki/August Krogh https://en.wikipedia.org/wiki/August Krogh • Martin Shkreli: https://en.wikipedia.org/wiki/Martin Shkreli https://en.wikipedia.org/wiki/Martin Shkreli • Novo Nordisk: https://www.novonordisk.com https://www.novonordisk.com • Zeiss: https://www.zeiss.com https://www.zeiss.com • Philip Morris: https://www.philipmorrisusa.com https://www.philipmorrisusa.com • Vectura: https://en.wikipedia.org/wiki/Vectura https://en.wikipedia.org/wiki/Vectura • Matthew Prince on X: https://x.com/eastdakota https://x.com/eastdakota • “AI Will Break the Internet”—Cloudflare CEO’s Big Prediction: https://www.ericriesshow.com/matthew-prince-ai https://www.ericriesshow.com/matthew-prince-ai • Andrew Mason on LinkedIn: https://www.linkedin.com/in/andrewmason https://www.linkedin.com/in/andrewmason • Groupon: https://www.groupon.com https://www.groupon.com • Steve Jobs: https://en.wikipedia.org/wiki/Steve Jobs https://en.wikipedia.org/wiki/Steve Jobs • Yvon Chouinard: https://en.wikipedia.org/wiki/Yvon Chouinard https://en.wikipedia.org/wiki/Yvon Chouinard • Patagonia: https://www.patagonia.com https://www.patagonia.com • Unilever: https://en.wikipedia.org/wiki/Unilever https://en.wikipedia.org/wiki/Unilever • Johnson & Johnson: https://www.jnj.com https://www.jnj.com • Peter Drucker: https://en.wikipedia.org/wiki/Peter Drucker https://en.wikipedia.org/wiki/Peter Drucker • How the Former U.S. CTO Built a $3B Healthcare Company Powered by Love | Todd Park: https://www.ericriesshow.com/how-the-former-us-cto-built-a-3b-healthcare-company-powered-by-love-todd-park https://www.ericriesshow.com/how-the-former-us-cto-built-a-3b-healthcare-company-powered-by-love-todd-park • Devoted Health: https://www.devoted.com https://www.devoted.com • Don’t be evil: https://en.wikipedia.org/wiki/Don%27t be evil https://en.wikipedia.org/wiki/Don%27t be evil • Silicon Valley on HBO Max: https://www.hbomax.com/shows/silicon-valley/b4583939-e39f-4b5c-822d-5b6cc186172d https://www.hbomax.com/shows/silicon-valley/b4583939-e39f-4b5c-822d-5b6cc186172d • Adam Smith: https://en.wikipedia.org/wiki/Adam Smith https://en.wikipedia.org/wiki/Adam Smith • Understanding public benefit corporations: Profit with a purpose: https://www.britannica.com/money/what-is-a-public-benefit-corporation https://www.britannica.com/money/what-is-a-public-benefit-corporation • B Corp: https://www.bcorporation.net https://www.bcorporation.net • Anthropic: https://www.anthropic.com https://www.anthropic.com • Clayton Christensen: https://en.wikipedia.org/wiki/Clayton Christensen https://en.wikipedia.org/wiki/Clayton Christensen • Howard Schultz on LinkedIn: https://www.linkedin.com/in/howardschultz https://www.linkedin.com/in/howardschultz • HEB: https://www.heb.com https://www.heb.com • Mary Parker Follett: https://en.wikipedia.org/wiki/Mary Parker Follett https://en.wikipedia.org/wiki/Mary Parker Follett • Elon Musk on X: https://x.com/elonmusk https://x.com/elonmusk • Sam Altman on X: https://x.com/sama https://x.com/sama • Dario Amodei on X: https://x.com/DarioAmodei https://x.com/DarioAmodei • Daniela Amodei on LinkedIn: https://www.linkedin.com/in/daniela-amodei-790bb22a https://www.linkedin.com/in/daniela-amodei-790bb22a • Kobayashi Maru: https://en.wikipedia.org/wiki/Kobayashi Maru https://en.wikipedia.org/wiki/Kobayashi Maru • Mark Zuckerberg: https://en.wikipedia.org/wiki/Mark Zuckerberg https://en.wikipedia.org/wiki/Mark Zuckerberg • Larry Page: https://en.wikipedia.org/wiki/Larry Page https://en.wikipedia.org/wiki/Larry Page • Sergey Brin: https://en.wikipedia.org/wiki/Sergey Brin https://en.wikipedia.org/wiki/Sergey Brin • Rome Conference on AI, Ethics, and Governance: https://romeai.wsgrevents.com https://romeai.wsgrevents.com • OpenAI: https://openai.com https://openai.com • Cohere: https://www.coherehealth.com https://www.coherehealth.com • Palantir: https://www.palantir.com https://www.palantir.com • John Lewis & Partners: https://www.johnlewis.com/ https://www.johnlewis.com/ • Mondragon: https://mondragon-corporation.com https://mondragon-corporation.com • Alibaba: https://www.alibaba.com https://www.alibaba.com • What is Evergreen?: https://www.tugboatinstitute.com/what-is-evergreen https://www.tugboatinstitute.com/what-is-evergreen • Berkshire Hathaway: https://www.berkshirehathaway.com https://www.berkshirehathaway.com • Conway’s law: https://en.wikipedia.org/wiki/Conway%27s law https://en.wikipedia.org/wiki/Conway%27s law • Ants vs. humans: Solving the piano-mover puzzle: https://arstechnica.com/science/2025/01/ants-vs-humans-solving-the-piano-mover-puzzle https://arstechnica.com/science/2025/01/ants-vs-humans-solving-the-piano-mover-puzzle • Frederick Winslow Taylor: https://en.wikipedia.org/wiki/Frederick Winslow Taylor https://en.wikipedia.org/wiki/Frederick Winslow Taylor • The Principles of Scientific Management 1911 : https://en.wikipedia.org/wiki/The Principles of Scientific Management https://en.wikipedia.org/wiki/The Principles of Scientific Management • Rowntree’s: https://en.wikipedia.org/wiki/Rowntree%27s https://en.wikipedia.org/wiki/Rowntree%27s Recommended books: • The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses : https://www.amazon.com/Lean-Startup-Entrepreneurs-Continuous-Innovation/dp/0307887898 https://www.amazon.com/Lean-Startup-Entrepreneurs-Continuous-Innovation/dp/0307887898 • Incorruptible: Why Good Companies Go Bad... and How Great Companies Stay Great : https://www.amazon.com/Incorruptible-Good-Companies-Great-Stay/dp/B0FWZZBPZB https://www.amazon.com/Incorruptible-Good-Companies-Great-Stay/dp/B0FWZZBPZB Production and marketing by https://penname.co/ https://penname.co/ . For inquiries about sponsoring the podcast, email email protected /cdn-cgi/l/email-protection f989969d9a988a8db9959c9797808b989a91908d8a9280d79a9694 . Lenny may be an investor in the companies discussed.