The Demise of Team Treehouse: A Cautionary Tale

Team Treehouse, an e-learning company, has laid off most of its staff despite receiving over $12 million in funding in 2013. This is a shocking turn of events, especially when compared to Mammoth Interactive, which has sold over a million courses worldwide since 2011. So, what went wrong?

Initially, Team Treehouse was a well-regarded content producer, with polished tutorials and a large team behind it. However, the company struggled with several mistakes, including implementing a 32-hour workweek, which didn't work out, and adopting a "no boss" structure, which also failed.

As a business owner, it's essential to try new things and adapt to changing market conditions. However, not all attempts will succeed. A commander-in-chief is necessary to move a company forward, as seen in the success of Elon Musk at Tesla. While it's important to recognize and reward smart subordinates, a complete absence of a command structure is likely not the most effective way to manage a team.

A looser command structure, with regular reevaluation, may be a better approach. This allows for more flexibility and opportunities for subordinates to grow and contribute. As a CEO or company leader, it's crucial to strike a balance between innovation and structure, using the experiences of others as a guide to improve and grow your own business.

Team Treehouse's Approach to Work Structure and Employee Management

Team Treehouse's approach to work structure and employee management was unique, but ultimately flawed. They delegated more important tasks to other people, and had flexibility in work schedules and responsibilities. However, their 32-hour workweek experiment didn't work out as planned.

As the CEO, delegating tasks and responsibilities to other team members is essential. However, having a clear command structure is also necessary for a well-run organization. Some employees need to work long hours, including the CEO and managers. Different employees have different work styles and needs, and it's essential to accommodate these differences.

A goal-oriented work schedule, where employees are rewarded for meeting specific goals, can be an effective way to manage employees. This approach allows employees to work at their own pace and take time off when they need it. Additionally, accommodating freelancers and employees with non-traditional work styles can be beneficial for the company.

Over-hiring and inefficient use of employee time and resources can be a significant problem for e-learning companies. It's essential to delegate tasks wisely and ensure that employees are used effectively. As the company grows, it's important to adapt to changing employee needs and work styles, and prioritize flexibility, goal-oriented scheduling, and accommodating different work styles.

Challenges and Possible Reasons for Layoffs

Several factors may have contributed to Team Treehouse's layoffs, including overhiring, limited VC funding, and failure to secure additional funding. The company may have struggled to manage its resources effectively, leading to a lack of funds and ultimately, layoffs.

The Power of PR Firms

PR firms can be instrumental in getting a company's message out to a wider audience. They can help companies get featured in major news outlets, which can be expensive. With funding, companies can afford to hire PR firms, giving them a significant advantage.

Advertising Budget

Many e-learning companies, including Team Treehouse, use Facebook and Google ads to reach their target audience. However, getting a good ROI on advertising can be challenging, especially for e-learning companies.

Team Treehouse's History

In 2013, Team Treehouse's ads were everywhere, including YouTube, Facebook, and Google. The author of this passage even created a mock video called "Coding for Cats" as an April Fool's joke, which featured the same stock music as Team Treehouse's ad.

E-Learning Industry Trends

The e-learning industry has seen significant growth since the pandemic. Some e-learning companies, like Cloud Guru, have been acquired, indicating a trend of consolidation in the industry. However, the industry still faces challenges, including the problem of scalability, where many e-learning platforms prohibit developers from scaling their content.

Challenges in the E-Learning Industry

The pandemic did not necessarily boost e-learning companies, as a good strategy is essential. The e-learning industry lacks investment in content, making it difficult for companies to grow. The majority of e-learning VC funding goes towards platforms, not content.

What Went Wrong with Team Treehouse

Team Treehouse explored too many new ideas and hired too many people, which can be detrimental to a business. The company may not have managed its $12 million investment effectively. The e-learning industry may not be as healthy as other industries, such as video games or movies.

Lessons Learned

To run a successful business, you must run a lean operation, even with VC funding. You must manage your resources effectively to achieve success. The e-learning industry needs more studios like Team Treehouse, with a focus on content development. The acquisition of Cloud Guru is a significant event in the industry, but the e-learning industry still faces challenges.

In conclusion, the demise of Team Treehouse serves as a cautionary tale for e-learning companies and businesses in general. It's essential to strike a balance between innovation and structure, manage resources effectively, and prioritize flexibility and goal-oriented scheduling. By learning from Team Treehouse's mistakes, we can build stronger, more successful businesses in the e-learning industry.