PMs Run Areas Like Mini CEOs at Intercom

Intercom's transformation from a plateauing SaaS business to an AI-first company demonstrates that radical reinvention requires decisive, top-down leadership during times of disruption.

When Owen McCabe returned to Intercom as CEO, the company was approaching zero net new ARR after five consecutive quarters of decline. Six weeks after ChatGPT launched, they had a working prototype of what would become Fin, their AI agent for customer service. Rather than incrementally adapting, Owen chose to fundamentally transform the company, believing that "if you're not in it, you're about to get kicked out of all of it."

This transformation required what Owen calls "wartime company" leadership. He made unilateral strategic decisions, cutting costs aggressively, abandoning unfocused initiatives, and rewriting company values to create "a sharp knife to cut out the parts of the company that I just knew wouldn't be effective." This approach prioritized resilience, high standards, hard work, and shareholder value—values that proved controversial within the existing culture.

The shift wasn't merely technological but cultural. Owen implemented quarterly performance processes that evaluated both results and alignment with values, creating a formula that removed people who fell below certain thresholds. This led to approximately 40% employee turnover and even a "soft coup" attempt, but ultimately created a more aligned organization. As Owen explains, "Greatness is created when you find a CEO who's willing to make brave, hard decisions and own the results."

For leaders navigating AI disruption, Owen's experience suggests that incremental adaptation may be insufficient. The companies winning in AI are often younger organizations working at extraordinary intensity—"literally twelve hours a day, literally 365 days a year." This creates a stark choice: either commit fully to transformation or risk obsolescence.

For ICs, this perspective means recognizing that during transformative periods, organizations may shift from collaborative decision-making to more directive leadership. Those who thrive will be those who can align with the new direction and intensity. As Owen notes, "Employee-founder-product-market fit" matters—having the right employees for the type of business you're creating. Some may be better suited to more stable, democratic environments, while others will excel in high-intensity transformation.

The payoff can be substantial. Fin is now growing at over 300%, reaching "solid mid-eight digit ARR," and Intercom projects becoming the fastest-growing public software company. But this comes with a clear message: in times of AI disruption, half-measures likely won't succeed. As Owen puts it, "You either decide to pay the price or get out. Don't half-ass it."