When founders become bottlenecks
An article by Shahnaz Hamade, Founder and CEO of Harmonie Consulting There is a particular kind of exhaustion that many founders understand. It comes from being the answer to every question, the approver of every decision and the person whose phone is never truly off. From the outside, this can look like commitment. Inside the company, however, it may signal something more serious: the operating…
The article "When founders become bottlenecks" discusses the challenges faced by startups as they grow and the need for a shift in the operating model. While founder-led decision-making is effective in early stages, it can become a hindrance as the company expands and enters new markets. Research from McKinsey indicates that around 80% of successful startups fail to scale due to people and organizational issues, with 65% of these failures attributed to people and organizational factors.
The core issue is not the founder's reduced involvement, but rather the need to change their operating system to accommodate a larger team and broader product portfolio. The article emphasizes that delegation is not a simple management skill, as it requires altering the founder's relationship with the company and establishing clear roles for functional leaders.
The distinction between advisers and decision-makers is crucial, as it helps prevent decision queues and ensures that employees have the authority to make necessary decisions. Ultimately, the solution lies in effective organizational design, with a clear distinction between decision-makers and advisers, to enable the company to scale successfully.
Brief written by urgent.news from Wamda's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
