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Execution & Leadership

Management’s Top Challenge: How To Scale

Russ ReederMarch 8, 20215 min read

Every growing company hits the same wall. What got you here won’t get you there. The processes, the team structure, the decision-making style that worked at $10M breaks at $50M. And the leaders who built the company to its current stage often struggle to see what needs to change because they’re inside the system.

Scaling is management’s top challenge because it requires you to simultaneously run the current business and rebuild the operating model for the next stage. That’s like changing the engine on a plane while it’s flying.

The companies that scale successfully do a few things differently. They ruthlessly prioritize. Not everything can be a priority. If you have ten priorities, you have none. The discipline to say no to good opportunities so you can say yes to great ones is what separates companies that scale from companies that sprawl.

They question everything. ‘We’ve always done it this way’ is the most dangerous phrase in business. Every process, every role, every meeting should be justified by its contribution to current outcomes, not its historical existence.

They build systems instead of depending on heroes. The VP who personally closes every big deal is a hero today and a bottleneck tomorrow. Scale requires making the organization less dependent on any single individual and more dependent on processes that anyone in the role can execute.

Define it. Measure it. Own it. Close it. Scale it. That’s the mantra. And it applies to the company’s operating model just as much as it applies to any individual initiative.

RR

Russ Reeder

Founder & CEO, KeyDelta | Forbes Technology Council

30+ years scaling technology companies as a CEO, COO, and operator across Oracle, GoDaddy, OVHcloud, Netrix Global, and XTIUM. Founded RightsLine (Disney+, Hulu, Sony). Forbes Technology Council member. HBS Executive Education. Russ advises CEOs and PE-backed leadership teams on execution clarity through the VOOCS operating system.

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