twilio ceo jeff lawson says wisdom lies with your developers

Jeff Lawson, the Chief Executive Officer of Twilio, possesses significant experience in empowering software developers. His organization has achieved a market valuation of nearly $60 billion by developing a suite of instruments that simplify the integration of diverse communication capabilities into applications using minimal code. Considering this history, it’s unsurprising that Lawson recently released a book titled “Ask Your Developer,” which became available this week.

The central tenet of Lawson’s book revolves around the idea that if a solution can be created internally, it should be. Every organization faces the decision of whether to develop software in-house or procure it externally. Lawson strongly advocates for the advantages of self-reliance through internal development rather than relying on pre-packaged solutions. Utilizing building blocks, such as those offered by his company and other providers of specialized functionality through APIs, allows businesses to construct precisely what their clientele require, instead of being limited to vendor offerings.

Lawson acknowledges that a build-versus-buy approach isn't universally applicable, but he suggests that engaging developers in conversation can help determine the most appropriate course of action. These conversations should originate from identified customer challenges, and companies should pursue digital resolutions with the active participation of their development teams.

Building great customer experiences

Lawson suggests that a superior customer experience is achievable through a deeper understanding of your customer base than any broadly focused provider could offer. “Essentially, we’re observing a trend across almost all sectors where businesses that effectively listen to their customers, identify their requirements, and subsequently develop exceptional digital products and experiences are the ones who ultimately gain customer loyalty and revenue,” Lawson explained during a discussion regarding his book this week.

He notes that this evolution has altered the way organizations view their IT divisions. These departments have transitioned from being viewed as expense centers focused on providing equipment and purchasing human resources tools to becoming crucial contributors that develop digital products directly influencing the company’s financial performance.

The book illustrates this point with the example of the banking industry. Previously, a bank’s reputation was based on factors such as the appearance of its physical locations, the friendliness of its staff, and small gestures like offering children treats. Currently, the primary determinant of customer satisfaction is the quality of the bank’s mobile application.

“Today, for many people, their bank *is* a mobile app, and they appreciate their bank if the software operates quickly, is free of errors, and receives consistent updates introducing new features and improvements that enhance their daily lives [ … ]. This same shift is occurring in almost every industry, and therefore, you cannot achieve a competitive advantage if all banks simply purchase and implement the same mobile app from a common vendor,” he stated.

Ask the experts

Regarding your business, the choice between developing a solution internally or procuring one externally can appear challenging. However, Lawson recommends consulting your development team, aligning with the core message of his book, and then arriving at a conclusion. If they demonstrate strong enthusiasm, he advocates for a strategy of experimentation and iterative development to assess the viability of the concept.

“Effective business leadership involves seeking guidance from the technical experts and individuals who possess a thorough understanding of the technology’s capabilities. These are the people who can identify the most efficient route from the company’s current state to the implementation of a solution. Leaders should solicit their developers’ insights to determine which areas warrant purchasing solutions and which are better suited for internal development,” he stated.

This isn't merely theoretical advice; his own company embodies this approach. When Twilio determined that its annual customer conference would need to transition to a virtual format last year, it demonstrated its commitment by constructing a conference platform utilizing its own technologies. This was a significant undertaking, but Lawson shared that they successfully executed the decision, adhering to the principles outlined in his book.

“Within the book, I emphasize that experimentation is essential for fostering innovation. [Our conference team] presented a concept and rapidly developed a working model. We responded positively, recognizing its potential and authorizing its implementation. This led to our decision to build a custom platform, in part because, as a company centered around communication products, we saw it as an excellent opportunity to showcase our own offerings,” Lawson clarified.

Even for organizations that aren't as heavily focused on development as Twilio, he maintains that this remains the optimal course of action. He observes that many companies encounter difficulties when they attempt overly ambitious projects from the outset or expect an application to be flawless immediately. “It’s important to validate your concepts with customers, beginning with a limited scope. Once you’ve confirmed the value of your ideas, you can then proceed with scaling them,” he advised.

However, one factor that can stifle this type of experimentation is a negative response to unsuccessful attempts. Lawson points out that while many leaders profess a desire for innovation, their actions can inadvertently discourage risk-taking. He contends that even discovering what doesn’t work provides valuable insights.

“If a team proposes an idea and builds a prototype, and then reports back after a few months stating that ‘it didn’t resonate with customers,’ are those individuals recognized for efficiently and affordably identifying a flawed concept, or are they subtly penalized?” Lawson questioned.

Finding developer talent

Given the reported shortage of software engineers in numerous areas, and the difficulties even established technology firms face in locating skilled professionals, it's reasonable to inquire about the source of this talent. However, Lawson is actively investing in solutions. The revenue generated from his book will be donated to four different organizations – NPower, Black Girls Code, Smash, and YearUp – with the goal of expanding access to development careers for individuals from diverse backgrounds and ultimately increasing the number of available programmers.

Furthermore, he emphasizes the importance of cultivating a company atmosphere that appeals to developers. “It’s crucial to present a compelling case to technical professionals, demonstrating that senior leadership is committed to fostering a culture that encourages innovation and supports developers,” he explained. “Additionally, organizations must ensure they are fully utilizing the skills and potential of their development teams.”

This involves treating developers with respect and professionalism, involving them in key decisions, allowing for experimentation and learning from mistakes without penalty, and establishing a workplace where their contributions are recognized and appreciated.

By implementing these strategies, organizations can position themselves to become innovative entities that prioritize internal development over external acquisition, and, according to Lawson, achieve sustained success as a result.