The woman behind Canva shares how she built a $42B company from nothing | Melanie Perkins

Key Concepts

• Column B Thinking: A strategic approach that involves envisioning a desired future state (Column B) and then working backward to achieve it, rather than starting with current resources and limitations (Column A).
• Chaos to Clarity: A framework for developing ideas, where initial concepts begin in a state of "chaos" and are progressively refined through incremental steps towards "clarity."
• Crazy Big Goals: Ambitious, seemingly improbable objectives that inspire hard work and dedication, fostering a sense of inadequacy that drives individuals to achieve them.
• Two-Step Plan: Canva's overarching mission: 1. Build one of the world's most valuable companies. 2. Do the most good we can do.
• 1% Pledge: A commitment to donate 1% of time, money, equity, and profitability to philanthropic causes.
• Closing the Loop: A product development process that involves actively soliciting and acting upon customer feedback and requests.
• Problem-Centric Approach: Focusing on solving a core, unmet need for users rather than being driven by competitor analysis or existing solutions.

Summary

This transcript features an interview with Melanie Perkins, CEO and co-founder of Canva, discussing her journey, the company's philosophy, and its future. The conversation delves into strategic thinking, goal setting, product development, and the company's philanthropic mission.

Column B Thinking and Crazy Big Goals

Melanie Perkins introduces the concept of "Column B thinking," contrasting it with traditional planning (Column A). Column B involves envisioning a perfect, improbable future and then working backward to make it a reality, akin to building a castle on a hill. This is contrasted with Column A, which focuses on what can be achieved with existing resources, like stacking bricks. Perkins emphasizes that Canva's entire foundation was built on Column B thinking, driven by a vision of a future where design is online, collaborative, and simple.

This vision is intrinsically linked to Canva's core value of "crazy big goals." Perkins explains that these goals, such as empowering the world to design or ensuring everyone has their basic human needs met, make individuals feel inadequate, motivating them to work harder to achieve them. She argues that reasonable or realistic goals can lead to complacency or abandonment when faced with obstacles, whereas crazy big goals, while difficult, are worth pursuing even if only partial progress is made.

Operationalizing Vision: Chaos to Clarity and Vision Decks

The concept of "Chaos to Clarity" is presented as a framework for bringing ideas to life. Every idea starts in a state of chaos and progresses through incremental steps that add clarity. The initial step might be as simple as writing down an idea, followed by creating a pitch deck, refining designs, and developing prototypes. Visual communication is highlighted as crucial in this process, as it makes amorphous ideas visible and tangible.

This process is operationalized through "vision decks," which are created for every project. These decks help to clarify thinking and allow others to see the vision. Perkins likens new ideas to "ugly babies" that are fragile and need time to develop, emphasizing the importance of not prematurely discarding them. The very first step in this process can feel "embarrassing" because it involves acknowledging a lack of mastery and not having all the answers, but it's essential for willing the idea into existence.

Canva's Mission and Mission Pillars

Canva's overarching mission is to "empower the world to design." This mission is broken down into "mission pillars," such as empowering everyone to design anything, with every ingredient, in every language, on every device. These pillars are then further defined by "successive goals" set annually. For example, the "design anything" pillar has expanded from social media and presentations to include docs, websites, whiteboards, video, and more. Similarly, the "in every language" pillar has grown from English to over 100 languages, with a current focus on localization. The "on every device" pillar has evolved from a web platform to include mobile apps and cross-platform functionality. This structured approach allows for the gradual realization of ambitious, seemingly outlandish goals through consistent investment and compounding effort over time.

Navigating Setbacks and Investor Rejection

The transcript details significant challenges faced by Canva. A notable example is a two-year front-end rewrite that prevented the company from shipping any new product, a period described as being in a "dark dark tunnel." This was a difficult time for a product company, but the work was critical for future capabilities like cross-platform functionality and right-to-left language support. To cope, the team gamified the process with a board game featuring bath toys representing project components, making the experience both fun and distressing.

The story of over 100 investor rejections early on is also highlighted. Perkins recounts how investors' feedback, though often in the form of rejection, was valuable. Negative feedback like "your market's not big enough" prompted her to add slides to the pitch deck demonstrating market potential. Similarly, concerns about competition led to slides illustrating market gaps. This iterative process of refining the pitch deck based on feedback strengthened the company's narrative and pre-empted potential objections. Perkins emphasizes that rejection, when used to refine one's approach, can make a company stronger.

Leadership and Company Culture

Perkins reflects on her growth as a leader, noting that while some core principles remain, the approach to scaling has evolved. She uses the analogy of building a house, where trying to incorporate "bricks" from other companies' houses might not fit. Canva prioritizes authenticity and building what is true to its own journey. A key aspect of this growth involves "giving away hats" – delegating responsibilities to others who can perform them better as the company scales.

Canva's unique approach to goal achievement includes fun celebrations. When a crazy big goal is met, such as launching in Spanish or reaching 100 languages, the team engages in celebratory activities like smashing Greek plates or releasing doves. These moments are crucial for acknowledging achievements and preventing the constant pursuit of goals from becoming arduous.

The Two-Step Plan and Philanthropy

Canva's "two-step plan" is central to its identity: 1. Build one of the world's most valuable companies. 2. Do the most good we can do. Initially, Perkins thought these steps would be sequential, but she realized they could fuel each other. This is exemplified by the 1% pledge and the commitment to donate 30% of Canva's equity through the Canva Foundation. The foundation has donated $50 million to "GiveDirectly" to support individuals in extreme poverty and has pledged another $100 million over four years. Perkins emphasizes that wealth creation is a means to an end – enabling basic human needs to be met globally. Canva also provides its education product for free to 100 million users monthly and gives away its paid product to nonprofits, totaling $1.5 billion in product value annually. This philanthropic focus provides deep meaning to the work.

Product Expansion and AI Integration

Canva is continuously expanding its product suite, aiming to live up to its mission of enabling users to "design anything" and "publish anywhere." Recent and upcoming launches include significant advancements in video, email design, forms, and the embedding of AI across the entire product suite. AI is being integrated into the core editor and elements tab to generate presentations, videos, emails, websites, code, and photos. Comments are also being introduced for enhanced collaboration.

Perkins highlights that Canva's product strategy involves two core components: building towards the mission and listening to the community. The company receives over a million requests annually, with a dedicated team tallying and delivering them to product teams. This "closing the loop" process has led to numerous product features, from gradient text to the sheets product. User testing is also a critical part of this process, with individuals running hundreds of tests to gather feedback.

Regarding AI, Perkins states that its integration is driven by its ability to genuinely help customers achieve their goals with minimal friction. Canva was exploring AI concepts even before it was a mainstream technology, recognizing its critical role in enabling people to communicate their ideas. AI is used personally for exploring ideas, generating more ideas within Canva's context, and for "AI walks" to filter thoughts and gain macro-level perspective.

Vision for the Future and Personal Philosophy

Perkins shares her "2050 wall," a vision for the future that emerged from concerns about the current trajectory of humanity. This vision emphasizes basic human needs for all, global education as a human right, and a world characterized by bountiful communities and deep purpose derived from collective achievement. She believes that while individual actions are important, achieving such grand visions requires a global, collective effort. She advocates for shifting focus from the current "freight train" to what humanity truly desires for its societies and the world.

Her life mottoes include "happiness is when what you think, what you say, and what you do are in harmony" and the belief that "everything is led by imagination." She draws parallels between her past as an aspiring figure skater, learning to fall and get back up, and the resilience required in building a company.

Lightning Round Highlights

• Recommended Books: The Power of Moments and Designing the Obvious.
• Favorite Product (Non-Canva): The Calm app.
• Product to Work On: Funding companies that create global infrastructure to empower more people, aligning with the "rising tide lifts all boats" philosophy.
• Life Motto: "Happiness is when what you think, what you say, and what you do are in harmony," and the power of imagination.
• Learnings from Figure Skating: Resilience, hard work, determination, and the metaphorical aspect of falling and getting back up.

Conclusion

Melanie Perkins' insights reveal a deeply intentional and visionary approach to building Canva. The company's success is rooted in a combination of ambitious long-term vision ("Column B thinking," "crazy big goals"), a structured process for idea development ("Chaos to Clarity"), a strong connection with its community, and a profound commitment to social good through its "two-step plan." The narrative underscores the importance of perseverance through setbacks, the value of feedback, and the power of a clear, authentic mission in driving innovation and impact.