Why do so many promising startups go off the rails? Often they have
trouble scaling. Founders may resist imposing discipline for fear of
losing agility and control—but the price may be chaotic operations and
unpredictable performance. Drawing on extensive case studies and 75
years of research, the authors outline four activities that can help
companies handle greater complexity as they seek new avenues for growth.
Firms should: • Hire specialists in functions such as sales, HR,
marketing, R&D, and manufacturing. This lets them tackle work more
efficiently and catalyzes future growth by creating slack in the rest of
the organization. • Add management structure. A few people at the top
can’t effectively supervise everyone’s increasingly specialized daily
work—and it’s hard for employees to stay focused and engaged without
guidance and processes. • Establish a framework of plans and goals.
Otherwise, improvisation may amount to aimless riffing. • Sustain the
culture. Articulate the founding values in mission statements and job
descriptions, and hire and reward for cultural fit. Between the extremes
of ad hoc and prescriptive organizing lies a useful middle ground—and
leaders who can find it gain an important edge on their rivals.
[ABSTRACT FROM AUTHOR]