3 Things to Help A Leader Scale the Organization
Hiring. Talent Acquisition. Recruitment. Staffing. The synonyms can go on and on and on.
The truth is, for startups, the fuel for growth is dependent on making sure you have enough of the right people in the right jobs. A lot of growing organizations do not think about the people infrastructure of their company until ignoring it becomes untenable. The problems force a reactive solution.
Smart business leaders would never allow such reactivity to dominate a product strategy. Yet, reactivity is the default approach that many startups unintentionally take to their people strategy.
In my career, I have been fortunate to work with leaders at scrappy startups, exponential scale-ups, as well as massive global enterprises. I’d like to share some of my own personal lessons for founders and leaders of companies facing their next inflection point of growth.
Lesson #1 - Create an intentional communication strategy.
Founders and leaders have often expressed to me that they consider themselves to be excellent, clear communicators. They’re stunned when they find out how much the people in their organizations do not actually know. The problem is worsened with exponential headcount growth. For example, an easy standup meeting in the early days might have worked to share announcements, but as the team expands, leaders need to create an intentional communications strategy. Plan it, execute it, and repeat yourself more than you think you need to. Be open to feedback, test what works, and commit to the process. With each layer that gets added to the organization, the less easily messages are transmitted up and down the organization. Remind yourself, consistent and persistent communication works.
Lesson #2 - Power and influence are not interchangeable
Power comes with a title and position within the company. Influence comes through credibility and trust. The best leaders wield power lightly and rely on their capacity to influence others to move the mission of the company forward. The hammer of power can be very powerful in the short-term by using your position as a means to get what you want. In working with countless leaders, I’ve learned the important paradox that the more a leader exerts her power, the less power she actually has. In other words, the most effective leaders are those who use their formal authority sparingly.
Lesson #3 - HR as a business partner
Let’s face it, for growing companies the HR function can struggle to express its value. That’s why you see so many HR functions rebrand themselves to try to convey the value they provide. People Operations, People & Communities, Talent Management, Human Capital, and, yes I’ve even seen Employee Resources, as a subtle spin on the focus. No title really captures it well. Here’s the point: they’re all trying to make. They’re trying to signal something about the value they bring to the table. As you hire your first HR leader in the company, here are some tips. You might look for somebody who has worked outside of HR early in her or his career, to ensure they understand the operational elements of growing a company. Make sure that person has an insatiable curiosity about how the business makes money and what the product strategy is. But, for heaven’s sake, don’t put somebody in charge of HR who has never done it before. Would you hire a CFO that has never overseen a quarter close? Would you hire a CMO who had never executed a product launch? Would you hire a CTO who doesn’t know any programming languages? For some reason, there’s a tendency to believe that HR is a function that “anybody who is good with people” can run. It’s a highly disciplined function that, when run well, not only protects the company as it grows but also creates systems and structures that will unlock the best of your team. Then, once brought on board, make sure to involve the new HR leader as a full member of the leadership team. Invite her or him to strategy meetings, quarterly business reviews, product demos, etc. The more the HR leader is plugged into the heartbeat of the company, the more rapid and compelling the impact will be.
Bringing it all together
Every successful organization creates a thoughtful product and customer strategy. As companies grow and scale, it is critical to create and execute upon a thoughtful people strategy. Clearly and frequently repeating messages is critical for team members to remember and retain learnings. As a founder or leader with a rapidly growing organization, learn to develop your capacity to influence versus wield power. Finally, as you hire your first HR leader, ensure that person quickly gains a full view of the organization, instead of relegating it to hiring and firing. In my experience, when these three lessons are learned and applied, it’s like adding rocket fuel to the growth of the company.
