Are you managing monkeys or are you managing highly competent human beings? Are your employees actually any
good?
The whole exchange stank of condescension and patronization. This is a high-level exec at a company, his basic intelligence doesn't need to be questioned - he did not need the principle of 1:1's to be explained to him as if he were a child.
One of his direct reports is violating a very clear, established policy. "Steve" needs to fix it, pronto, and that's all that needed to be communicated. The whole pointlessly patronizing "lesson" in business and the direct threat to Steve's job was entirely unnecessary. It's unproductive and just plain power-posturing.
It's only necessary if your workforce is consisted entirely of slack-jawed yokels that need to be hand-held through the very job you hired them to do. If that's the case, you should fire yourself for having created an organization full of slack-jawed yokels.
Side note, from the article:
> "it’s personally very important to me that Opsware be a good company. It’s important to me that the people who spend 12 to 16 hours/day here, which is most of their waking life, have a good life"
Protip: if you want to have a good place to work, and your employees to have a good life, don't have 12-16 hour days.