Keith Rabois has been an executive at PayPal, LinkedIn, and Square, and now invests in startups at Khosla Ventures. Across all of those experiences, he keeps coming back to one framework that he considers the most important concept in hiring: barrels versus ammunition.
"Ammunition is people who can do great work when you aim them. Barrels are people who can take a vague idea and drive it to completion on their own."
The distinction is simple but powerful. Ammunition is talented people who do excellent work when given clear direction. Barrels are the rare people who can independently take a vague idea, define the problem, build the plan, recruit help, drive execution, and ship. Most companies have plenty of ammunition and are starving for barrels.
"Most people vastly overestimate how many barrels are in their organization. A team of 50 might have three or four."
Rabois considers the number of barrels to be the binding constraint on any company's growth. You can have unlimited ammunition, but without barrels to aim it, nothing ships. His advice: when you find a barrel, hire them immediately, even if you don't have a defined role. Create one. The cost of a barrel sitting idle for a month is trivial compared to the cost of not having them at all.
"The single biggest constraint on any company's growth is the number of barrels it has."
The way to identify barrels is straightforward: give someone a project with vague instructions and a deadline. If they come back having defined the problem, built the plan, and shipped something — that's a barrel. If they come back with questions about what to do next — that's ammunition. Both are valuable. But barrels are the multiplier.
