(audience cheering and clapping)
All right, I'm so glad to be back in San Francisco.
I'm so happy, I love it here.
Anyway, let's get talking with someone I've known
for 100 years at least, Stewart Butterfield.
(audience cheering and clapping)
We just talked backstage, that was kind of fake.
So I want to talk, I want to start talking
because we're sort of, being back in San Francisco,
being out, Dreamforce is back.
Thrilled it is, I was glad that you're sort of
taken over the streets even though it used
to be super annoying, it's slightly less annoying now,
but let's talk a little bit about back at work.
and then we'll talk about some of the products,
'cause obviously companies like Slack, like Zoom,
like a lot of, did really well in the pandemic,
but now everything's changed,
and you've got all these sort of terms
that I'm not so sure will stay or not.
I just like your sort of 1,800-foot view down
of what's happening right now in the workplace.
So, I don't like the phrase back to work
'cause hopefully people were working that whole time.
That's true, fair.
And I've been doing
this kind of thought experiment
where if you imagine, like, an alternate timeline
where it's, sorry for anyone who came to my keynote
and heard me say exactly the same thing,
but imagine March of 2020 where we were allowed
to travel for work and commute, use offices,
conference rooms, business meetings, all that stuff,
but you took away all the software,
then every large enterprise would've just disintegrated
in 24 hours, like everyone would've ceased to exist.
So at some point in the last 30 or 40 years,
the relative importance of the physical headquarters
and the digital headquarters kind of inverted, and yeah,
we say digital HQ is kind of a marketing term,
but there is actually some digital infrastructure
that supports productivity and collaboration,
and I think people don't invest nearly as much as they could
in intentionally designing the way that they work,
given how infinitely configurable the digital HQ is.
All right, but people definitely,
this was sort of the biggest experiment in human history,
in terms of working from home.
I have always worked from home, I have always had digital,
we ran Recode, we ran everything,
sometimes we'd meet, and have lunches,
and do very intentional things.
A lot of people are, you know,
tech is sort of leading the way
of tech workers don't want to go back,
people live different places,
they're being very allowances,
but other companies are not,
they're wanting to bring people back,
I just interviewed head of Goldman, he was like,
"I want everyone in the office."
There's all kinds of different people that are doing that.
Where do you imagine the balance,
'cause there's this idea that millennials really likes
not working at the office,
I know from our own businesses nobody is there.
How do you, where do you imagine it going now,
and then what's important when, 'cause it was sort of,
everyone just grabbed what they could
and started figuring it out, and it worked in the workplace
better than in schools or somewhere else.
So what do you imagine has to happen?
about the balance of power shifting a little bit more
towards the employer from the employee over the last,
I dunno, six months or so, since the market started tanking,
but I think there's still a lot more power
I mean , I'll say from my perspective,
obviously I'm not an average person,
but I'm never commuting to the office
five days a week again, for sure, there's no chance of that.
I have a 16-month-old and that's,
I just imagine if he was born three years earlier,
it would've been a totally different experience,
I waste much less time, all that stuff,
but I think there's two things, on the employee side,
if you have two offers from different companies
and their compensation's about equal,
and the kind of, the work was equally interesting
and good for your career,
and one says you have to be in the office five days a week
and the other one says you can be in the office
as much as you want to or need to,
who would take the, like, options have value no matter what.
There are a small handful of exceptions there
where people really want to be in the office
and they want all of their colleagues
to also be in the office,
but I think the overwhelming majority of people
would prefer the flexibility,
not even so much because of the location of the work,
they have to get a lot more flexibility of time,
and we've done a lot of surveying through the Future Forum
time flexibility is the most desirable thing.
On the employer side, we could say two days in the office,
but it would be kind of pointless at this point
because the teams have already mixed around so much
because, like, in November of 2020 or June of 2021,
you're an engineer, wants to work on this project,
we stopped looking to see what city you're in,
and we stopped saying if you were in this city,
you can only work on these three these things,
so it's all mixed up anyway,
so if you did go to the office for two days a week,
it would be with a random selection of other people,
that we don't want to get together in person
'cause I think there's enormous value to that,
but the two-days-a-week thing feels
like all of the cost of demanding that people come in
with, in most cases, very little of the benefit,
because the chances that the people who are in the office
two days a week are going to be working
on the same thing as you is very, very low.
'Cause a lot of people talk about intentional gathering,
the idea that everyone's in on a Wednesday
or everybody's there on a certain day.
Obviously it's going to have implications
for commercial real estate, et cetera and stuff,
and I noticed you all built a big tower here recently.
How do you think about, what do you do then?
And because there are some benefits,
Scott and I were talking about on Pivot the other day,
there are benefits to being together,
especially you're a young person, you know,
social mentorship, take the other side.
Yeah, so I mean the, I go to our office in New York
and most of the floors are closed,
but it's still, it's humming, because there's a lot of,
especially younger people, who have two roommates
and they live in Manhattan or Brooklyn,
and there's just, like, it's physically impossible
for them all to be doing Zoom calls
in the same tiny apartment.
Tokyo's another place where people
are back to the office, 'cause of the built infrastructure
doesn't support working from home.
A little bit of that's true in London, but less so,
but occupancy overall, I saw it yesterday
and I don't remember, unfortunately,
so this might be incorrect,
I believe it's still 40% for midtown Manhattan,
that's a pretty big reduction,
so if you say back to normal, it's not at all, I mean,
if you're a dry cleaner on 52nd Street,
does not feel at all normal for you.
The flip side is, I guess,
I like to be around other people, I like the energy-
Creativity, more of a work-life separation,
because that's obviously a real problem
when everyone's working from home.
It's not just that, like, I can't know which way it goes,
your home got in your work,
but your work definitely got into your home
and it's much harder to make that distinction.
And I guess the last one, looking at it as an executive,
one of the things I think we miss from the old world
is this, the weak social ties.
So people still get a very good sense of their peers,
their manager, or their direct reports,
but you don't stand next to random people
who work at the company in the elevator,
or behind them for coffee,
or sit next to them in the all-hands,
and if you're a salesperson,
knowing someone on the commercial legal team
If you're a recruiter, knowing someone in the employment,
just those connections are, are much harder to create,
but I think that the net answer is
we are slowly going to reconfigure our cities,
our homes, and accommodate a lot more working remotely,
and ideally, from Slack's perspective,
adopting a lot more asynchronous practices
so that people have the temporal flexibility as well,
'cause that I think, again, is even more important.
So talk about, because one of,
some of the things are adequate to the task,
some of the things aren't,
you can't live perpetually in a video environment.
What do you imagine it looking like,
you and I have been around forever,
and we'll talk about that in a second, but you know,
remember when Cisco had the presence thing
that never really worked,
like, didn't work, and then they had holograms
that were super expensive,
and then there were the idea of VR is another one
that they keep promising and it never, you know,
it's sort of somewhere after jet packs
and that it's coming soon.
What do you think is important to move the needle
so people do feel that there is an environment?
'Cause there's a creativity that you lose
when you aren't together.
Yeah, I think it's the rhythm of getting together
in person, because I think it's worth it for,
it's hard for me to imagine a role that's at all interesting
for someone to do where it wouldn't be useful
So for some teams that might be just once a year
for some teams it might be every other week,
but I feel like getting together
for the purpose of creating the work, or prioritizing,
or coming up with a plan, but I look at Slack's headquarters
is a couple blocks that way,
240,000 square feet that has 40 or 50 people going into it
on an average day now, but where, I don't know,
190,000 of those 240,000 square feet
are just, like, kind of factory farm,
battery chicken housing for people to sit
and use their laptop by themselves
and sometimes even have headphones on,
and that part they can do anywhere, right?
But the intentionally coming together to plan,
to prioritize, to build relationships, to deepen trust,
I think is going to continue to be important,
and that means a broader reconfiguration,
which is probably not super interesting for everyone,
but every company got a great bonus during the pandemic,
which was their travel and entertainment expense went boom
and everyone got a couple more points of margin,
and now that we're planning to get people, like,
deliberately get people together again,
the fact that you hired someone in Ohio
and they got paid 20% less,
doesn't matter as much if you're going to be flying them
to San Francisco or New York three times a year
and paying for hotels, and so we have to reimagine
how we budget as well, I know that's a little boring.
let's just see, like, a show of hands in the room.
How many of you have heard of the Amazon
six-page memo format for meetings?
Right, so almost everyone,
and it's kind of a trick question
because everyone's heard of it
because there's so few efforts made
to improve the efficacy of meetings
or to improve people's communication.
You think about, if you're a manager,
you spend approximately 100% of your working time
on communications, it's like one-on-one meetings,
reading and writing messages, like,
you know, all that stuff,
and you look through the organization
to the people who spend the least amount
of their working hours on internal communication,
it's still going to be 30 or 40%.
So let's say you have a 10,000-person company,
your payroll cost is about a billion dollars,
you have on average 50 or 60% of people's time
is spent on communication, that's 500 or $600 million a year
you're spending for type of people that communicate
and you probably don't even give 'em 15 minutes of training.
Like, there's no onboarding course
about how to run more effective meetings,
how to write better, to be more concise,
and I feel like, because it's intangible,
because it's electronic, digital,
there's this predisposition to say
"We just want to lower the cost of software."
Whereas if you had a physical plan,
if you have a factory and you're doing things
in an inefficient way, then it's like,
it's an emergency to change it,
and we are augmented by our software tools
in the same way that people producing physical objects
are augmented by all the robots and all the automation,
but again, because it's not tangible, we don't see it,
and so we don't see the opportunities,
and so we end up in situations
where humans do a lot of repetitive, mindless,
kind of mind-numbing work that could be automated
and it's also just more expensive.
Well, so how does that then change?
I mean, my policy is I don't do meetings at all,
I refuse, and then they can text me.
I'm like, "You can text me," my producer loves it,
I'm like, "Just text me and I'll get back to you,"
but I actually do refuse meetings, and I remember years ago,
the Google guys stopped doing meetings completely,
they got rid of their assistants
and therefore their assistants couldn't get them
on your schedule 'cause they didn't want to get
on anybody's schedule, 'cause Google people do that,
they're very aggressive, grabbing bits of time.
In any case, that's neither here nor there,
but what is, what does that, what can this software do?
Because I think about what does it look like,
because it certainly isn't going to look
like it does now where it's essentially, you know,
writing little memos to each other versus emails
or talking within a thing,
what does that look like going forward?
'Cause I think about that a lot,
if it's going to be the way people work,
does it have to have video elements, VR elements?
What do you foresee happening?
So, I feel like I'm right more than 50% of the time,
just kind of-
That's alright.
Barely, so I could be wrong about this-
It's called a guess, but go ahead.
The metaverse just has zero appeal to me
as a working tool.
Me too.
Like, it might be okay for some novelty thing,
but certainly you're never going to do that all day every day,
Right.
You're right about video,
it's just absolutely exhausting.
So the search for us has been how can we take processes
that today must be synchronous,
in other words, like, everyone's doing it at the same time,
and make an asynchronous alternative that's better,
and not everything is kind of amenable to that,
you can't do it for everything, but here's my pitch.
Okay, so Slack announced yesterday the canvas,
which is a flexible container for arbitrary digital objects,
which is, makes perfect sense to me
and is not a marketing term.
And then we have the huddles, which is like audio first.
there's a distinction between a meeting and,
and a working session, in a meeting,
in this way of looking at things,
is there's 12 people, there's a deck,
I'm going to walk through the deck,
we're going to do some questions, have a discussion,
is a group of network operations engineers
diagnosing a production incident
or marketers preparing to launch
a new version of the website
and going through the burn down list,
and so we do both of those, we call them meetings,
we use the same tools and stuff like that,
but they're actually pretty different activities.
So my dream is we figure out
how to put the live communication tools
on top of the canvas, that flexible container,
after the meeting you get a receipt,
'cause you don't even get that today,
you just have the dead calendar entry
that says, "This meeting took place at this time
with these people."
Notes, right?
Yeah, but then, yes, exactly,
the notes that would've been in a separate doc,
why have the black void behind you on the Zoom call
when you could have the notes right there and, you know,
nice previews of all the presentations that were shared,
and anytime someone refers a document
and the chat that goes along with it,
if you can make that good enough,
then people will get invited to meetings
couple years in the future and say, "Nah, that's cool,
I'll just catch it later," and right now we don't have that,
like, you spend 30 hours a week
and there's no accretion of value,
there's no kind of artifact that's left behind,
two months ago I blew 45 minutes trying to find a slide deck
that someone showed me in a meeting last week, like,
So I'm optimistic that there can be some improvements there,
but then you go up against human nature,
and here, humans, your choice is A versus B,
A is carefully articulate your thoughts in written form
and then edit it for clarity and concision,
and then evaluate their written feedback
and incorporate their ideas, well,
then B is have a meeting for 30 minutes.
So this is like, "Would you like to eat broccoli
"Would you like a Snickers bar, or something like that?"
A very dull Snickers bar, but yes.
It just seems so much easier to talk about it live
that, we do that way more than we should.
You just totally dismiss Mark Zuckerberg's future
by saying. (chuckles)
(audience laughs)
But I'm good with that because I agree with you,
but tell me, explain why that is,
because the Metaverse would be something
you might just start banding about at investor conferences,
I can see you doing that, like,
not you in particular, but-
Not me.
A buzzword and you know, such a (indistinct)
with his legless people and his meetings and stuff.
They spent literally two hours on the phone explaining to me
why no legs, but that's, and it, there's no good reason.
Can you talk about why you think that's not the way
besides all the issues that come with it?
Yeah, I remember like around 2000, maybe 2001, 2002,
this Bill Gates interview where he is talking
about the future of commerce
and it was like a 3D recreation of the store
with the aisles and you can push your cart
It's like, "Who would want that
when you can just search for the item
and click Add To Cart," or something like that?
The cumbersome, like, there's videos,
maybe Walmart, someone like that,
it was some metaverse NFT, da, da, da, thing,
and it showed someone, like,
trying to pull the item off the shelf in the metaverse
and put it into the cart and that's ridiculous.
The advantage of all the stuff is you transcend space,
and you're able to accomplish a lot more as a result.
Having said that, again, there might be novelty uses,
unimaginable.
But you don't see work
Yes, I don't see knowledge work.
If I work at Airbus or Boeing,
wiring up of A320 or a 767,
having an AR overlay-
I see surgical stuff.
Yeah, with all the wiring and stuff like that,
Surgical applications and stuff like that,
but accounts payable, product marketing?
Like, why would you want to be in the metaverse with it?
So you don't see it as a big thing you're leaning into.
Yeah, like I said, can be wrong.
(Stewart and audience laughing)
AR, I mean, one of the things about that metaverse,
it was so interesting when they put,
I thought it was the most non-creative use of it,
is, "You can change your outfit,"
But it made no sense to me in terms of the creativity.
Because I just interviewed Tim Cook
and that's all he talks, besides Auburn football,
all he can talk about is AR,
which is literally the most boring conversation
you can have, so you move to AR because Auburn football
is so boring, but AR is there,
leaning into that very heavily.
What does that do in any way for the workplace?
Do you imagine that being a critically important function
So I don't know how things will turn out,
but I remember the guy from Magic Leap,
"We should work on a Magic Leap Slack integration,
and I was like, "You kidding me?"
Like I want to put goggles on
and then see Slack messages appearing
in an overlay of reality?
That sounds horrible, and I mean, obviously I like Slack.
But being confronted with it in the-
What I can imagine though
is at some point we're going to transcend the form factor
of the smartphone.
Right.
I have no idea what that looks like,
there's a lot of companies-
The glasses, the glasses.
Glasses, or watches, or holograms, or whatever,
and the thing that I like about AR, potentially,
is being able to take advantage
of a fuller spectrum of our perceptual abilities,
'cause we're good at having things in the periphery,
and noticing changes, and being able to turn towards those,
and I think there is a lot of effort that feels forced
the 2D experience of the smartphone or the desktop computer
and the moving the mouse, and things like that,
is like an impediment to what we're able to accomplish
'cause if there was some, you know,
telepathic ability-
And even typing.
Yeah, like, to set up a spreadsheet
(audience laughs)
Is that how you to do it?
(Kara and audience laughing)
But would would definitely be better.
So there might be like applications there.
Are you investing any?
No.
No, no, not right now, because the form factor works.
Yeah, and honestly, I mean, we also have the stories
about Apple submitting the trademarks for whatever AR,
who's going to compete with Apple on that stuff?
I think we're going to be-
Right.
That's true-
It's going to be rough.
I think that's the whole point, is they're not.
So when you're thinking about that,
I always think about, the book is what I think about,
sometimes I'm like, the book kind of works,
it kind of works as a device of communication, that said,
a digital book also works, you know, very well, very well,
because these form factors are getting better and better.
Right now, you know, you and I've been around a long time.
Stewart I met when he was doing a failed company,
a gaming company, which became Slack, so good for you.
But you were sort of obsessed with that idea of gaming,
I think your first company was a gaming company.
Everything was a gaming-
The other one that failed.
So whatever he does in gaming,
invest in that company and stick around,
is because the gaming is not going to work,
but talk about why you were interested in that,
because I'm really interested
in where innovation's going to come,
I want to finish up talking about that.
Silicon Valley's going through a lot,
has been, a lot of the regulatory stuff,
I'm spending a lot of time in Washington.
Some of it deserves, some of it it's just common,
just 'cause of that way.
Yeah.
Where does, how do you create innovation?
You just mentioned Apple so big,
it's the same thing with all these companies,
whether it's Amazon, or Alphabet, or whatever,
although Meta's really small now, interestingly enough,
not that small, but small enough.
Can you talk about where you think about that?
Because you've started things up,
you've had failures, but then it turns into something else.
How do you get to innovation in this era?
'Cause it's very different.
Silicon Valley's not a place anymore, really.
Everybody's, you know, scattered to the winds
and gone to whatever chalet in Montana
Talk a little bit how you do that
when there's not the place.
Yeah, sure.
'Cause here's a physical gathering,
which is very exciting, actually.
To the first part of that.
So, started a company to make
a web-based massively multiplayer game, it failed,
that became Flickr, and that got acquired by Yahoo,
and of course I was at Yahoo when you were
the demon terrorizing-
I was not a demon.
I was absolutely completely correct, but go ahead.
(Stewart and audience laughs)
I just want to say I wasn't the source-
But I actually appreciate-
Yes, he was completely
the source of everything.
No, he wasn't.
(Stewart laughs)
And then yes, we started another company,
the same group of people,
to build a web-based massively multiplayer game
and that became Slack, but to me it's the same experience
that I had in 1992 when I got to college
and I was given an account on the schools' mainframe,
and was exposed to the internet for the first time.
And I grew up in Victoria, British Columbia,
which is very provincial,
kind of on the periphery of the continent,
like, you know, in a physical sense,
but it's also on an island and you just feel very removed,
and the transcending time and space
to be able to communicate with all these people
so the use of computing technology
to facilitate human interaction has been the focus,
whether that's, like, massively multiplayer game,
massively multiplayer photo sharing,
massively multiplayer game again, that didn't work,
massively multiplayer workplace software,
and I feel like we're very,
early is probably the wrong word,
there's so much more to experiment with.
People talk sometimes about, like,
wouldn't you like to consolidate
all of your messaging apps into one 'cause it's so...
But there is something very distinct
about interacting with someone in Snapchat versus Instagram
versus WhatsApp versus text messages,
and I think there's a lot more for us to explore,
and we use this example sometimes, like,
in the 19th century, the Thames River
and the Charles River in Boston would catch on fire
all the time, we figured out how to have the benefits
of the industrial revolution
without the most severe consequences,
and I feel like we're in a similar position
with respect to technology,
especially social technologies,
where it's obviously an enormous benefit,
for our fragile psychological mechanisms that were evolved
to deal with small tribal groups and stuff like that,
so I think there are negative consequences
to social networking services,
there are negative consequences
to kind of, like, phone addiction.
I don't know how many of you ever get that thing
from Screen Time on your iPhone that says, like,
"Congratulations, you were down 7%
to 11 hours a day on your phone."
But we'll figure that out,
humans are really endlessly inventive.
I think there's just a little bit of an advantage
to being in the Bay area,
but I think we'll continue to see more all over the place.
Do these moves by regulators
to make, to allow smaller, you came from smaller companies,
obviously you're at a larger company.
How do you continue to keep that ecosystem,
whether it's distributed or in one place?
Is there still, when you have these massive companies,
which are very innovative right now, they really are,
you couldn't say Apple's not innovative, you couldn't,
they're all, Amazon is certainly innovative,
how do you keep that spark of innovation going?
where there's a little bit of mystery to me because,
obviously, well, you can all go in Wikipedia
and you can look up the components of the DOW index
so it's kind of fascinating to go back 100 years
it's American Leather Corporation, US Steel,
American Rubber, stuff like wood, coal,
I think that there'll be perpetual opportunities.
I don't think the lock in of Google, or Facebook,
or Amazon, or anyone is a perfect mode,
and if you just look at companies that were started,
that went public in the last five years,
there's probably a couple trillion dollars
of combined market cap of all those companies
and they just keep on coming.
So there are good regulations,
I think we can have some unintended consequences
if there's just kind of like a reflexive, reactive-
Last question very fast.
Okay.
You had a kid over the pandemic, I had two,
I'm not saying I'm better, but I am.
You are faster.
(audience laughs)
Yeah, lesbians are really fast in having children,
and we should raise all the children,
but that's another time for another place.
But what is the workplace look for our kids,
my many kids, your single child.
What does it look like for them going forward?
Yeah, that is honestly a fascinating question
that I have not thought about very much
'cause it's just so hard to predict
it is not going to be the battery chicken,
factory farm housing for people to sit
and use their laptops by themselves,
maybe that AR comes into play,
and we have a broader array of abilities
that enable us to work together,
but I'm going to go out on a tiny little nub of a limb
and say that I think the smaller,
like, this kind of second-tier US cities
that grew in population over the pandemic,
the kind of the movement of people,
"I'm going to trade having a much larger house with a yard
for being in this physical center,"
the slow reconfiguration of our homes
to accommodate more work,
all of that stuff will continue
and it will be a much more flexible world.
Stewart Butterfield, everyone,
(audience cheers and claps)