The Evolving Role of Managers in Scaling Companies

The Evolving Role of Managers in Scaling Companies

Introduction:

As a company grows and scales, the responsibilities of its managers undergo significant changes. Founding leaders must learn to let go and empower their team members to lead. Failure to adapt to this shift can lead to a loss of confidence from investors and board members. This article explores the key areas where CEOs and founders often struggle as their companies grow, provides actionable advice for each stage of growth, and emphasizes the importance of embracing new dynamics and technologies.

Hiring and People Management:

Hiring and people management are crucial aspects of a company's growth, and CEOs/founders need to adapt their approach as the company scales. In the early stages, it is essential for CEOs to stay involved in the hiring process. As the company reaches 50 to 100 employees, the CEO's role transitions into guiding and mentoring the team through the decision-making process. Once the company surpasses 100 employees, it is crucial to trust the hiring team and empower them to make the right decisions for their teams' needs. Investing in people experts, such as human resources managers and experienced recruiters, early on can save time and money in the long run.

Managing People and Product:

Managing people and product is another critical area where CEOs and founders need to adapt as their companies scale. In the early stages, CEOs may be learning how to manage people for the first time and should seek help from resources like books, podcasts, and mentors. As the company grows, it becomes essential to establish people-management guidelines and trust managers as leaders of their own teams. Similarly, CEOs need to shift their focus from the "how" to the "what" of the business. Empowering product leaders and designers and providing a high-level product roadmap allows the team to make informed decisions and fosters trust and autonomy.

Adapting to Scale:

Scaling a company requires paying attention to various factors beyond hiring and product management. CEOs and founders should consider the DNA of their early hires and assess whether they can continue to thrive as the company grows. Cross-team dynamics can create tension, and it is crucial to foster collaboration and resolve conflicts between teams. Thoughtful compensation structures and fair incentives are also essential to motivate and retain employees. Finally, it's important to recognize the human impact of hypergrowth and ensure employees are not overwhelmed or burned out.

Actionable Advice:

• 1. Invest in people experts early on: Hiring human resources managers and experienced recruiters can save time and money as your company scales.

• 2. Establish clear guidelines and trust your team: Set guidelines for hiring and people management and empower your team to make decisions within those guidelines.

• 3. Foster collaboration and resolve conflicts: Pay attention to cross-team dynamics and address any issues that arise promptly.

Conclusion:

As a company scales, the role of managers evolves, and CEOs and founders must adapt to new responsibilities. By understanding the challenges and taking actionable steps to address them, leaders can effectively navigate the complexities of scaling. Empowering teams, investing in people experts, and fostering collaboration are key to achieving sustainable growth and success in a rapidly changing business landscape.