High Growth Handbook
Founders
- Evolving roles: Adjust your role as founder continuously as the company scales; what worked at 10 people won’t at 100 or 1,000
- Key transitions: Navigate key transitions from founder to CEO by developing new skills in management, delegation, and planning
- Management structure: Establish clear management structures early; flat organizations don’t scale beyond 20-30 people
- Leadership team: Build your executive team before you desperately need them; hire ahead of growth
- Decision making: Create explicit decision-making frameworks as you scale to maintain speed while including right stakeholders
- Priority setting: Focus relentlessly on 2-3 top priorities and communicate them consistently
- Operational cadence: Establish regular operational rhythms with clear meeting structures and decision processes
- Cultural reinforcement: Codify and reinforce culture through hiring, firing, and promotion decisions
- Scaling communication: Implement formal communication channels as informal methods break down at scale
- Personal development: Invest in your own development as CEO through coaching, mentorship, and peer networks
CEO
- Time allocation: Spend your time on what only you can do: setting vision, hiring key leaders, securing resources, and making critical decisions
- Delegation approach: Delegate everything else; your job is making others successful, not doing their work
- Strategic vision: Clearly articulate where the company is going and why it matters
- Board management: Manage your board actively rather than reactively; prepare thoroughly and maintain relationship between meetings
- Fundraising strategy: Approach fundraising strategically with clear timing, targets, and thesis
- Crisis leadership: Lead decisively during crises; be visible, communicate clearly, and focus on solutions
- Personal bandwidth: Guard your calendar ruthlessly; your time is the company’s scarcest resource
- Information gathering: Create systems to stay informed without micromanaging; use skip-level meetings and structured reporting
- Decision framework: Develop clear frameworks for which decisions you make versus delegate
- Succession planning: Always be developing potential successors for yourself and key executives
Organization
- Organizational design: Design your org structure around your strategy, not personalities or legacy
- Centralization balance: Balance centralization and decentralization based on your stage and needs
- Functional vs. divisional: Choose functional organizations for speed and alignment in early stages; shift to divisional as you scale and diversify
- Reporting structures: Create clear reporting structures with appropriate spans of control (5-8 direct reports)
- Matrix challenges: Avoid matrix organizations until absolutely necessary; they add significant complexity
- Reorganization approach: Execute reorganizations quickly and clearly; communicate the why, what, and how
- Role clarity: Ensure every role has clear responsibilities, decision rights, and success metrics
- Organizational debt: Address organizational debt (misaligned teams, unclear responsibilities) as aggressively as technical debt
- Org evolution: Plan for organizational evolution with growth; revise structure every 6-12 months during hypergrowth
- Transition management: Manage transitions carefully with clear communication and support
Board
- Board composition: Construct your board thoughtfully with complementary skills and experiences
- Size management: Keep your board appropriately sized (5-7 members) for effective decision making
- Meeting preparation: Prepare thoroughly for board meetings with pre-reads distributed well in advance
- Strategic focus: Focus board discussions on strategy, not operational reviews
- Material preparation: Send board materials 72+ hours in advance; include key metrics, challenges, and decisions needed
- Meeting structure: Structure meetings effectively with clear agendas and time for strategic discussion
- Communication cadence: Maintain regular communication between meetings; avoid surprises
- Conflict management: Address board conflicts directly and professionally
- Independent directors: Add strong independent directors who bring specific expertise
- Advisory relationships: Develop advisory relationships with board members between formal meetings
Executive Staff
- Executive profile: Hire executives who have scaled beyond where you need to go next
- Team composition: Build a complementary executive team with diverse strengths and perspectives
- Hiring process: Use rigorous, consistent hiring processes for executives with extensive reference checks
- Onboarding importance: Invest heavily in executive onboarding; first 90 days are critical
- Performance management: Set clear expectations and give direct feedback to executives early and often
- Team dynamics: Foster healthy executive team dynamics with trust and productive conflict
- Compensation strategy: Design executive compensation to align with company goals and retain key talent
- Succession planning: Require succession plans from all executives for their key roles
- Development investment: Invest in developing your executives; they need coaching too
- Removal decisions: Make executive removal decisions quickly when necessary; delays are costly
Growth
- Growth mindset: Develop a growth mindset throughout the organization; set ambitious targets
- Metrics focus: Focus on the right growth metrics for your business model and stage
- Growth team: Build dedicated growth teams with clear ownership and accountability
- North Star Metric: Establish a North Star Metric that aligns the entire company
- Experiment culture: Create a culture of rapid experimentation with clear hypotheses and measurements
- Channel expansion: Systematically expand acquisition channels as existing ones saturate
- Scalable processes: Build processes that scale with your growth rather than break under pressure
- International expansion: Approach international expansion strategically with clear market prioritization
- Growth constraints: Identify and systematically remove growth constraints before they limit you
- Sustainable growth: Focus on sustainable growth drivers rather than short-term tactics
Scaling Culture
- Culture definition: Define your culture explicitly in terms of behaviors, not just values statements
- Hiring alignment: Align hiring processes with cultural priorities; screen rigorously for cultural fit
- Cultural reinforcement: Reinforce culture through recognition, promotion, and when necessary, firing decisions
- Communication scaling: Scale communication systematically as you grow with all-hands, emails, and documentation
- Decision making: Establish clear decision-making frameworks that embody your cultural values
- Cultural champions: Identify and empower cultural champions throughout the organization
- Founder presence: Maintain appropriate founder presence to reinforce cultural values
- Subculture management: Manage emerging subcultures carefully; allow appropriate variation while maintaining core values
- Culture measurement: Measure culture with regular surveys and feedback mechanisms
- Cultural evolution: Allow culture to evolve appropriately as you scale while preserving core elements
Common Scaling Challenges
- Hiring velocity: Build recruiting capacity before you need it; hiring constraints will limit growth
- Communication breakdown: Address communication breakdowns with deliberate processes and tools
- Middle management: Develop effective middle managers; they become critical as you scale
- Process balance: Find the right balance between process and agility; too little or too much process can be fatal
- Decision bottlenecks: Identify and eliminate decision bottlenecks through clear frameworks and delegation
- Growth plateaus: Expect and plan for growth plateaus; they require different strategies than growth phases
- Organizational debt: Address organizational debt regularly; outdated structures create friction
- Burnout prevention: Prevent burnout with sustainable pace and explicit recovery periods
- Competition response: Respond to competitive threats strategically, not reactively
- Market evolution: Anticipate and adapt to market evolution; what got you here won’t get you there
Scaling Yourself
- Time audit: Conduct regular time audits to ensure you’re focusing on highest-leverage activities
- Delegation mastery: Master the art of delegation; give outcomes, not tasks
- Learning velocity: Maintain high learning velocity through reading, networks, and structured reflection
- Coach engagement: Engage coaches and mentors appropriate to your stage and challenges
- Peer networks: Build peer networks for support, learning, and perspective
- Energy management: Manage your energy, not just your time; prioritize physical and mental health
- Decision frameworks: Develop personal decision frameworks to maintain consistency and reduce fatigue
- Personal board: Create your own personal board of advisors for guidance and accountability
- Strength leverage: Double down on your strengths rather than fixing all weaknesses
- Work-life integration: Find sustainable work-life integration; marathon pace beats sprinting
Key Takeaways
- Role evolution: Continuously evolve your role as founder/CEO as the company scales
- Executive team: Hire executives who have operated successfully at your next scale
- Board management: Manage your board actively as a strategic resource
- Organization design: Design your organization around strategy, not personalities
- Growth focus: Maintain relentless focus on the right growth metrics for your stage
- Culture reinforcement: Reinforce culture through hiring, firing, and promotion decisions
- Decision frameworks: Create clear decision frameworks to maintain speed at scale
- Communication systems: Build systematic communication as informal methods break down
- Time allocation: Allocate your time ruthlessly to the highest-leverage activities
- Sustainable pace: Set a sustainable pace for yourself and the organization; hypergrowth is a marathon