Rippling and the return of ambition: How Highlights on Medium changed publishing forever

Rippling and the return of ambition: How Highlights on Medium changed publishing forever

In the world of technology and startups, the idea of starting small and growing rapidly is not a new concept. Many successful companies, such as Apple, Microsoft, and Google, started with just a handful of employees and went on to become giants in their respective industries. However, as the startup ecosystem has evolved, so too have the challenges that companies face in maintaining productivity and efficiency as they grow.

One of the biggest challenges for fast-growing startups is the management of employee data. With data scattered across multiple systems, it can be difficult to get a holistic view of an organization's workforce. While point solutions may solve some of the symptoms, they often fail to address the root causes of the administrative crisis. This is where Rippling, a software company founded by Parker Conrad, comes in.

Rippling takes a different approach to employee management. Instead of focusing on individual point solutions, Rippling starts with the employee record as the source of truth for all employee data. By contextualizing each employee within the company, Rippling is able to solve the administrative crisis holistically across software systems. This approach not only saves time and resources but also allows for a more strategic approach to company building.

Unlike many software companies that start opportunistically, building products based on market demand, Rippling was built through intelligent design. Each product has a whitepaper and each funding round has a written memo. This deliberate approach allows Rippling to build a compound product quickly and efficiently. It also allows the company to amortize the investment in middleware capabilities across all its modules, freeing up engineers to work on new product functionality.

One of the key advantages of Rippling's approach is its focus on ambition. While many startups optimize for efficiency metrics like maintaining a 1:1 ratio of net new annual recurring revenue (NNARR) to burn, Rippling prioritizes R&D spend and long-term upside. This focus on ambition sets Rippling apart from its competitors and allows the company to accumulate advantages over time.

Bundling is one of Rippling's key accumulating advantages. By offering an expansive product that includes HRIS, software distribution, and more, Rippling is able to increase contract sizes, accelerate growth, improve retention, and increase cross-sell rates. This bundled product also drives sales and marketing efficiencies, as customers look to Rippling for new product offerings.

Of course, bundling does come with its own risks. Because Rippling's product doesn't neatly fit into existing Gartner categories, it can be harder to find customers. However, Rippling's unique modular org structure, with each product having its own autonomous GM and engineering team, helps mitigate these risks. This structure allows each micro-startup within Rippling to leverage the technical infrastructure, distribution engine, and existing customer base of a large company.

In the world of online publishing, another company that has disrupted the industry is Medium. With its unique features like Highlights, Medium has changed the way people interact with written content online. Highlights allows readers to engage with content in a more social way, by highlighting quotes, phrases, or passages that resonate with them. This feature has been praised by both readers and writers alike, and has helped position Medium as one of the leading online publishing platforms.

One of the reasons why Highlights has been so successful is because it taps into the power of engagement. While vanity metrics like views or clicks may seem important, what really matters is the depth of engagement and interaction that users have with the content. Medium understands that engagement is key, and features like Highlights help foster a sense of community and interaction among its users.

For writers, feedback is currency. Highlights gives Medium authors a direct line of feedback from their audience, allowing them to see which parts of their posts are most engaging and worthwhile to read. This feedback not only helps writers improve their craft, but also attracts the best writers to the platform. The combination of high readership and financial rewards for quality posts has made Medium a go-to platform for writers.

The success of Highlights and Medium's focus on engagement holds important lessons for other companies. It's important to prioritize depth of discussion over shallow metrics. Vanity metrics may look good on paper, but they don't necessarily reflect the true value that users are getting from a product. Companies should strive to find one metric that truly measures engagement and focus on improving that metric.

Additionally, companies should not assume that all users will use their product in the same way. User feedback and learnings are crucial for product development and improvement. By listening to users and understanding how they are using features in unexpected ways, companies can uncover new opportunities and make their product even better.

In conclusion, both Rippling and Medium have revolutionized their respective industries by taking a unique approach to their products and focusing on engagement and ambition. Rippling's holistic approach to employee management and bundling strategy have allowed the company to accumulate advantages and differentiate itself in a crowded market. Meanwhile, Medium's Highlights feature has changed the way people interact with written content online, fostering a sense of community and engagement among its users. Both companies serve as examples of how focusing on the right metrics and listening to users can lead to success in the ever-evolving world of technology and startups.

Actionable advice:

1. Prioritize depth of discussion and engagement over shallow metrics. Find one metric that truly measures the value users are getting from your product and focus on improving it.
2. Listen to user feedback and learnings. Don't assume that all users will use your product in the same way. By understanding how users are using features in unexpected ways, you can uncover new opportunities and make your product even better.
3. Take a deliberate approach to product development. Build products through intelligent design, with whitepapers and written memos for each product and funding round. This will allow for a more strategic approach to company building and enable the accumulation of advantages over time.

Sources:

• Rippling and the return of ambition
• How Highlights on Medium changed publishing forever