When your company grows, your leadership must do the same

Growing pains; they’re common in childhood, yet they also happen in companies. Growth is exciting, but it can be equally challenging, especially for leaders. 

Before, you may have had a smaller team that felt cohesive. You were scrappy, and folks pitched in wherever necessary to make things happen. Now that your company is larger, what used to work is no longer effective. Perhaps your team got bigger, or maybe you now have more specialized departments with different priorities competing for resources. These are just a few ways that things can start to feel like a battle internally.

Nearly every leader will experience the reverberations of accelerated growth at some point in their career, so what can you do when it happens to you? How do you keep everything running smoothly when your organization is being stretched at the seams? Here are lessons from two clients that you’ll likely find valuable. As always, names and identifying details are changed. 

Bandwidth breakdown

When your company grows, your relationships with your team members, especially those from the early days, will evolve. They have to, due to a sheer shift in bandwidth, if nothing else. You’ve likely developed personal relationships, and you’ve worked alongside each other for years, so everyone is accustomed to coming to you for everything. Yet at a certain point in the company’s growth, that’s no longer feasible. If a leader is still working on what they used to do, there’s no way for them to stay on top of their responsibilities as the organization evolves. There's a significant opportunity cost to the business if the leader doesn't level-up their leadership to focus on the things only they can do, including big-picture and strategic thinking. 

My client, Philip, is experiencing this firsthand. When his organization was smaller, there was an all-hands-on-deck culture. He was the point person for just about everything his team needed. Now that he’s leading a bigger team, he has less time and energy to take on tasks that used to be in his wheelhouse. For example, he’s consistently called in to meetings that he doesn't need to attend in order for progress to be made or accomplish what's on the agenda. Not only is it a time-suck for Philip, but he's also not empowering his team. Some of his leaders feel micromanaged, and some defer to him when he is present. Why does Philip need to be there if they are? As a result, he’s failing to effectively manage his time and continuously feels as though he’s falling behind (and forget about taking a vacation!). The purpose of his leadership team isn’t clearly defined - to him or to his people. 

Ask yourself: What is the function of your leadership team? Are they a group of direct reports, or are there things only they can accomplish?

Furthering role clarity 

Sharon’s firm has experienced rapid growth over the past five years. What started with just 20 people has now ballooned to over 300. Much of that growth was based upon the department that Sharon spearheaded from the ground up, so she’s been promoted over the years because of the results she’s delivered. However, as positions and responsibilities have shifted for her team, friction is running high. It seems that many no longer understand their role or the roles of others within the organization. Some aren’t even sure who they report to! As a result, mistakes are being made, tasks are being dropped, and conflict and frustration are becoming a daily problem for Sharon. 

When organizations expand, their needs change, and the infrastructure must change along with it. Many organizations don’t consider this until things start going wrong, and when they do, not many are successful. Without a clear blueprint for their department - and a plan to implement it - Sharon’s team is left guessing as to what part they play in the organization, a sure recipe for disruption. 

Ask yourself: How would your people describe their role, their impact on the team and the company as a whole? 

The structural solution

A sound structure is one of the 6 conditions identified in the Team Diagnostic Survey (TDS) that result in successful teams. These conditions can predict up to 80% of a team’s effectiveness. This means that the team is clear on its 3-5 mission-critical priorities, aligned on the challenges that they’re likely and strategies to overcome. Arguably most importantly, the team is aligned on norms and work practices needed to succeed (including the team leader). 

My advice to both Philip and Sharon: don’t create the structure on your own. I like the TDS approach of the Before Action Review (BAR), a tool consisting of a straightforward set of questions - for the whole team - intended to inform the planning stages of a new initiative. The BAR outlines the intended outcomes, lessons previously learned from similar projects, anticipated challenges, and actions needed to ensure success in light of what is already known. 

Much like expectations vs. agreements, people respond better to new structures when they feel they are an active participant in the process. It gives them agency and can often lead to better, more innovative ideas. Like a sports huddle, it makes sure that everyone who has a role to play in making it a success is involved in thinking it through - together.

Ask yourself: What would your team members say the team’s top priorities are for the next 90 days to be successful? What’s the likelihood you’d receive a consistent response along with the critical actions each person must take to achieve them? What support (or agreements) do they need from you in order to accomplish this?

Renowned thought leader Brian Tracy MBA once said, “In a time of rapid change, standing still is the most dangerous course of action.” I couldn’t agree more. Navigating growth is challenging, but think of the alternative! Better to see the need for new structure and initiatives as an opportunity to strengthen your organization, the way you work, and the relationships with your people.