PayPal has gone through a cultural transformation with radical transparency as a cornerstone of the plan.
Three years ago, PayPal was growing exponentially, staying profitable and was considered the most successful online payments company in the world. This should have been the recipe of a company that was attracting top talent across the globe, and keeping their core engineers happy, thriving, and innovative. But, at the time, the PayPal engineering team wasn’t where they needed to be to stay ahead of the curve — they didn’t have the process, the tools, or the resources to extend their talent and stay engaged in creating amazing products and services.
Leadership had encouraged the formation of engineering silos to “concentrate expertise,” but this made it incredibly challenging to get things done. At the same time, popular services such as Google and Amazon were raising the bar for everybody. All businesses — not just software-focused businesses — needed to have websites (and mobile apps) that were snazzy and responsive in addition to being reliable. PayPal engineering needed to push the proverbial envelope to stay competitive in a fierce and unrelenting industry landscape.
For PayPal, the transformation started at the edge of the stack. The Kraken project, which was started by an internal team to support a new checkout system, proved that an open source platform could reduce time to market and still perform at scale. This was achieved largely in spite of the silo culture that ran rampant and tended to restrict innovation and creativity. Support from senior management and perception of less risk at the edge of the stack helped the project and ultimately unleashed a gold rush of interest in repeating the win with releases of internally developed improvements to other open source projects. When I came into PayPal, I received an avalanche of mail from teams who wanted to “open source something.”