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The Foundr Podcast with Nathan Chan

664: He Changed How the World Builds Startups. Now He's Warning You About What Comes Next | Eric Ries

The Foundr Podcast with Nathan Chan

Nathan Chan

Entrepreneurship, Business, Marketing

4.9664 Ratings

🗓️ 21 May 2026

⏱️ 57 minutes

🧾️ Download transcript

Summary

Eric Ries wrote the book that changed how the entire world builds startups. Now he's back with a more urgent argument: the way we're taught to build companies is quietly turning them against everything that made them worth building in the first place. The creator of The Lean Startup has spent years watching mission-driven founders get fired from their own companies, watching the spark that started everything get extinguished by the very success they worked so hard to create—and he's finally written the blueprint to stop it. In this interview, Eric breaks down the core ideas behind his new book Incorruptible, why your corporate charter was designed to sound boring so you'd ignore it, and how the loyalty of your best customers is the most valuable—and most endangered—asset your business has. What you'll learn in this interview: • Why the metrics you're tracking are actively destroying customer loyalty—and what to measure instead • The IMVU pivot story: how six months of data finally broke through Eric's stubbornness and forced the pivot that saved the company • Why product improvements that don't change customer behavior aren't improvements at all • How to know when it's time to pivot—and why the real problem is never the decision itself but getting your team to agree on the facts • Why DTC brands are systematically burning their most loyal customers with re-acquisition marketing they've already earned • The Saul Price story: how the founder of Fed-Mart was locked out of his own company—and came back to build Costco • Why only 20% of founders are still CEO three years after IPO—and the governance decisions made at founding that cause it • Why your corporate structure was deliberately designed to sound boring so you'll ignore it until it's too late • The two paths every mission-driven founder must master: the path of ethos and the path of integrity • How Novo Nordisk's 100-year-old governance structure—built by a Nobel laureate in the 1920s—accidentally created the most profitable pharmaceutical in history If you're an early-stage founder, a DTC operator who cares about building something that lasts, or anyone who's ever wondered why the companies that start with the most idealism seem to end up the most corrupt, this conversation will fundamentally change how you think about structure, loyalty, and what it actually means to build a company worth protecting. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://your.omnisend.com/foundr⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → ⁠⁠⁠⁠⁠⁠https://foundr.com/operators⁠⁠⁠⁠⁠⁠ HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.foundr.com/startdollartrial⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://foundr.com/pages/coaching-start-application⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ → Already have a store? Apply here → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://foundr.com/pages/coaching-growth-application⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ CONNECT WITH NATHAN CHAN Instagram → ⁠⁠⁠https://www.instagram.com/nathanchan⁠⁠⁠ LinkedIn → ⁠⁠⁠https://www.linkedin.com/in/nathanhchan/⁠⁠⁠ CONNECT WITH ERIC RIES Instagram → ⁠https://www.instagram.com/ericriesactual/ LinkedIn → https://www.linkedin.com/in/eries/ Website → https://theleanstartup.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://bit.ly/2uyvzdt⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Website → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.foundr.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Instagram → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.instagram.com/foundr/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Facebook → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.facebook.com/foundr⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Twitter → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.twitter.com/foundr⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ LinkedIn → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.linkedin.com/company/foundr/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Podcast → ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.foundr.com/podcast⁠

Transcript

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0:00.0

Hey Founder fam, before we jump in, I want to take a quick moment to talk about our sponsor Omnisend,

0:06.8

the email marketing and SMS platform built specifically for e-commerce founders.

0:11.9

We've been recommending Omnisend to Founders students and members of our platform for a while now

0:16.4

because it just works.

0:17.9

So whether you're launching your first store or you're scaling it to seven

0:20.8

figures, it really helps you automate your marketing and get results. And did you know, on

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average, Omnysend customers make $79 for every $1 they spend, which is an insanely good return on

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investment? And if you're already on another platform, here's the thing. In just five days,

0:37.0

you could actually be paying 35% less without doing an absolute thing. Omnysend will move every flow across, list and template. You just show up when it's done. And finally, because you're part of the founder community, you get 50% off your first three months with the code, founder, 50. Just head to Omnysend.com forward slash founder

0:56.5

and that's Founder without the E to get started. All right, now let's jump in the show.

1:03.0

What of success itself is the thing that destroys everything that you've built and the way

1:07.8

most companies are structured practically guarantees it.

1:10.9

Today's guest, Eric Rees, the creator of the Lean Startup, which is the framework that changed

1:15.2

how the entire world builds startups is back with a new bold book called Incorruptible and an

1:20.8

urgent argument that the way we were taught to build companies is quietly turning them against

1:25.5

the very people and principles that made them

1:28.0

worth building in the first place. So in this conversation, you're going to discover why the loyalty

1:32.6

of your best D to C customers is your most valuable and overlooked asset and how most brands

1:39.1

are actively destroying it without realizing. You'll learn why the corporate structure your lawyer

1:43.9

called best practice is designed to sound boring, so you'll ignore it. And why ignore destroying it without realizing. You'll learn why the corporate structure your lawyer called

1:44.2

best practice is designed to sound boring, so you'll ignore it. And why ignoring it is exactly

1:49.4

how founders lose control of everything that they've built. And you'll also hear why success,

...

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