Introduction

As startups grow, they must transition from a nimble, founder-centric structure to a more mature organisation. Three main options present themselves: bureaucracy, anarchy, or a culture-driven approach. In this post, we'll explore these options and guide founders in becoming leaders of leaders and culture.

The Entrepreneurial Startup Structure

Startups typically begin with an entrepreneurial structure where the founder has complete control, and communication is mainly one-on-one. This structure is effective for small organisations focusing on simple tasks. However, as the startup grows, this structure becomes unsustainable, and a change is necessary.

Option 1: Bureaucracy

One option is adopting a bureaucratic structure, characterised by numerous rules, procedures, and a clear hierarchy. While this may provide stability, it can also stifle innovation, slow down decision-making, and create a rigid environment.

Option 2: Anarchy

The second option is anarchy, where chaos and confusion reign. This approach may foster creativity and rapid decision-making, but it can also lead to mismanagement, inefficiencies, and a lack of direction.

Option 3: Culture-Driven Leadership

The third option, and arguably the most effective, is leading through culture. This approach finds a balance between bureaucracy and anarchy by fostering a strong organisational culture that guides decision-making, drives innovation, and maintains a sense of direction.

Becoming a Leader of Leaders and Culture

To successfully navigate the growth phase, founders must evolve from leading their team to leading the entire organisation. They need to develop into leaders of leaders and become the driving force behind the organisation's culture. Here are some steps to achieve this:

1. Define your organisational values and vision: Create a clear vision for the company's future and establish a set of core values that will guide decision-making, behaviour, and daily operations.

2. Communicate and embody the values: Ensure that every member of the organisation understands and aligns with the company's values. As the founder, you must consistently demonstrate these values through your actions and decisions.

3. Empower your team: Delegate authority and trust your team members to make decisions based on the shared values and vision. This will encourage a sense of ownership and responsibility among your team.

4. Invest in leadership development: Provide opportunities for your team members to develop their leadership skills, enabling them to take on more significant roles as the organisation grows.

5. Foster collaboration: Break down silos and encourage cross-functional collaboration. This will promote innovation, knowledge sharing, and a sense of unity within the organisation.

6. Regularly reassess and adapt: Continuously assess the organisation's performance, culture, and structure. Be prepared to make adjustments as needed to ensure growth and resilience in an ever-changing business landscape.

By following these steps, founders can successfully transition from leading a team to leading an entire organisation, ensuring that their startup can continue to grow and thrive. This shift to becoming a leader of leaders and a champion of the organisation's culture will help maintain a balance between structure and flexibility, allowing the company to navigate the challenges that come with growth while staying true to its core values and vision.

Conclusion

As a startup evolves, the founder's role must change to facilitate growth and maintain the organisation's adaptability. By recognising the limitations of a pre-bureaucratic structure and moving towards leading through culture, founders can foster an environment that encourages innovation, collaboration, and resilience. By becoming a leader of leaders and a leader of culture, you can ensure that your organisation remains agile and responsive, unlocking its true potential and setting it up for long-term success.

Next Steps

Want to learn more about the founder bottleneck and how to scale your organisation? Check out these links:

Overcoming the Founder Bottleneck: Unlocking Your Business's True Potential

High Performing Teams Characteristics - 15 Things All High Performing Teams do

Growing A Business - 10 Barriers to Business Growth

To find out how PerformanceNinja could help you with overcoming the founder bottleneck, book a free strategy call or take a look at our GrowthLab.