• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Corporate therapy for Silicon Valley

By
JP Mangalindan
JP Mangalindan
Down Arrow Button Icon
By
JP Mangalindan
JP Mangalindan
Down Arrow Button Icon
April 21, 2014, 8:50 AM ET
Hagberg started coaching Dropbox CEO Drew Houston (left) in early 2012. “It’s sort of like a very powerful mirror that you shine on yourself,” said Houston, who is pictured with co-founder and CTO Arash Ferdowsi.

FORTUNE — At a going rate of $30,000 a year per client, Richard Hagberg doesn’t come cheap. But his clients might argue his services are worth the price.

A trained psychologist, Hagberg has spent the last 35 years of his career as an executive management coach training over 5,000 executives to become better leaders. Many of them work at well-known technology companies, such as Twitter (TWTR), Microsoft (MSFT), eBay (EBAY), and Dropbox. And while the skills he has them hone — delegating, dealing with conflicts, decisiveness — may sound like no-brainers, they’re vital to the long-term prospects of a company, particularly in an era where startups often live and die by out-innovating their competitors.

Entrepreneurs often go to extremes when managing for the first time: They either shy away from making decisions, or they go to the other end and just micromanage, explained Hagberg, who flies from his Whidbey Island, Wash., home to the San Francisco Bay Area every other week to meet with several of his 20 or so clients.

“As a result, they end up burning out, and they end up having organizational chaos,” he adds.

MORE: Satya Nadella needs more than one trick to fix Microsoft

Once an executive hires Hagberg, he puts that client through a series of tests. One test screens the client for nearly 50 different personality elements, such as degrees of optimism, independence, and risk-taking. (“It’s like a Myers-Briggs personality test on steroids,” quipped Dropbox CEO Drew Houston, one of Hagberg’s clients.)

Another test, dubbed the “360,” involves getting feedback about the client from up to 20 people: company investors, co-founders, and subordinates. All the data Hagberg collects are brought together in a presentation that he gives to the client. It outlines his or her strengths and weaknesses, and offers a customized plan that Hagberg will use to improve the client’s management skills.

“The plan needs to accommodate your personality,” explained Hagberg. “If you’re extremely shy, your company is going to IPO, and you need to go out there and do a roadshow, that may require some work for you to get over your fear of public speaking, or your general social anxiety.”

Entrepreneurs often go to extremes when managing for the first time: They either shy away from making decisions, or they go to the other end and just micromanage, Hagberg says.

Dropbox’s CEO Houston recalls undergoing a rigorous battery of data-driven tests when the file-sharing and storage company hired Hagberg in early 2012.

“He has this presentation where he starts going through your strengths,” Houston explained. “‘Oh, you’re really, really creative. You like new ideas,’ he’ll say, and, ‘You’re really flexible.’ And you’re thinking, Oh, that’s great. This is going pretty well. Then he goes through your weaknesses: You’re bored by routine. You’re unreliable. You drop balls. You don’t like planning. You’re conflict-avoidant.”

The truth was harsh, but indispensable, added Houston: “It’s sort of like a very powerful mirror that you shine on yourself.”

Hagberg worked intensively with Houston over the course of a year, shadowing him, observing his interactions with employees and conditioning the Dropbox CEO to improve on his weaknesses.

For example, Hagberg pushed the typically conflict-avoidant Houston to discuss and confront all company issues head-on. He also studied and worked with the rest of Dropbox’s management team to understand which skills they excelled at and which skills were lacking. Hagberg’s feedback led Dropbox to hire Google (GOOG) veteran and ex-Motorola Mobility CEO Dennis Woodside as its chief operating officer earlier this year. Indeed, Houston continues to check in with Hagberg on a monthly basis.

Houston is one of 40 or so startup entrepreneurs Hagberg has coached since 2009, and the difference between today’s startup founders vs. those of 15 years ago is vast, he says.

MORE: What corporate boards can learn from Delaware

Many of today’s entrepreneurs build their companies right after college (or in some cases, right after dropping out of college), whereas founders from decades past generally came to entrepreneurship with more experience in the corporate environment — experience that Hagberg says can be a disadvantage.

“If you come out of a big company, you may already have ideas about which models are appropriate for organizational structure, human resources systems, or budgeting disciplines,” Hagberg said.

Many younger entrepreneurs don’t come to a company with those preconceived ideas, he added. Rather, “they arrive with a tremendous appetite for learning and minimal ego problems compared with some of the people I’ve worked with at big companies over the years.”

 

About the Author
By JP Mangalindan
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Ally Bank reached 50/50 spend on men’s and women’s sports. Now its CMO is taking on ‘fanflation’
NewslettersMPW Daily
Ally Bank reached 50/50 spend on men’s and women’s sports. Now its CMO is taking on ‘fanflation’
By Emma HinchliffeApril 14, 2026
32 minutes ago
Bitcoin, Ethereum approach two-month highs as markets grow optimistic over U.S.-Iran peace negotiations
CryptoBitcoin
Bitcoin, Ethereum approach two-month highs as markets grow optimistic over U.S.-Iran peace negotiations
By Ben WeissApril 14, 2026
47 minutes ago
Sam Altman’s attacker had a kill list of AI executives. Experts warn this is just the beginning
AIchief executive officer (CEO)
Sam Altman’s attacker had a kill list of AI executives. Experts warn this is just the beginning
By Marco Quiroz-GutierrezApril 14, 2026
1 hour ago
mike rowe
Successskills
Dirty Jobs host Mike Rowe is giving away $10 million to get Gen Z into trades—and says the skills gap has never been worse
By Jake AngeloApril 14, 2026
1 hour ago
James Quincey
SuccessCareers
Coca-Cola chairman calls work-life balance a ‘weird phrase’ and says success is down to survival—’kind of like Squid Game’
By Preston ForeApril 14, 2026
2 hours ago
United Airlines CEO Scott Kirby
Successwork-life balance
United Airlines CEO Scott Kirby lies on his office floor and takes 20-minute naps—and he says it doesn’t mean he’s accomplished any less
By Emma BurleighApril 14, 2026
2 hours ago

Most Popular

Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
Success
Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
By Fortune EditorsApril 13, 2026
1 day ago
'People are trying to be creative': Tariff-battered American companies are so cash-starved they are using refund claims as collateral for loans
Economy
'People are trying to be creative': Tariff-battered American companies are so cash-starved they are using refund claims as collateral for loans
By Fortune EditorsApril 12, 2026
2 days ago
'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
Politics
'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
By Fortune EditorsApril 11, 2026
3 days ago
Current price of gold as of April 13, 2026
Personal Finance
Current price of gold as of April 13, 2026
By Fortune EditorsApril 13, 2026
1 day ago
U.S. naval blockade on Iran will trigger a currency devaluation spiral and hyperinflation, potentially ending the war more quickly, analyst says
Economy
U.S. naval blockade on Iran will trigger a currency devaluation spiral and hyperinflation, potentially ending the war more quickly, analyst says
By Fortune EditorsApril 13, 2026
1 day ago
Current price of oil as of April 13, 2026
Personal Finance
Current price of oil as of April 13, 2026
By Fortune EditorsApril 13, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.