Effective Growth Management: Scaling Startups
Molly Graham has a proven track record in nurturing work cultures that can sustain effective growth management. From her pivotal role at Google to her transformative tenure at Facebook, and now as COO of Quip, she has valuable insights on navigating the unique challenges of scaling a startup. Here’s what she has learned about managing rapid growth and creating a resilient company culture.
Molly Graham’s Scaling Experience
Graham’s experience spans significant growth phases. At Google, her team expanded from 25 to 125 within nine months. During her tenure at Facebook, the company surged from 500 employees to over 5,500, while user numbers skyrocketed from 80 million to over 1.1 billion. Now at Quip, she is laying the foundation for a team poised for rapid expansion while supporting startups like Instacart and New Relic.
The Unique Challenges of Scaling
Scaling presents a distinct set of challenges, some amusing and others more severe, which require effective growth management. For instance, companies might need to replace large desks with smaller ones to accommodate a growing workforce or move to an office that quickly becomes too small. More critically, rapid scaling can lead to significant stress and ambiguity.
Graham notes, “If you’ve ever seen a top performer struggle after thriving for years, you understand the turmoil of scaling. It’s crucial to manage growth proactively to avoid serious issues.”
Navigating the Emotional Roller Coaster
The ‘Give Away Your Legos’ Principle
Graham uses the metaphor of building a complex Lego tower to describe the experience of scaling. Initially, everyone is enthusiastic, with ample resources and opportunities. As the team grows, the influx of new members can trigger anxiety and insecurity. Employees may fear that new hires will encroach on their responsibilities or outshine them.
Graham explains, “The feelings of anxiety and insecurity when handing over parts of your job are akin to a child sharing their Legos. It’s a natural reaction, but necessary for building something greater.”
To succeed, team members must learn to embrace these changes and focus on new, larger projects rather than clinging to their old responsibilities. Graham stresses that this shift in mindset is essential for thriving in a rapidly growing company.
Effective Growth Management: Phases of Growth: Key Stages in Scaling
1. 30 to 50 Employees: The Foundation Stage
At this stage, companies often struggle with communication and decision-making as they outgrow their initial, informal systems. “When you exceed the capacity to fit everyone around one table, maintaining clarity and connection becomes challenging,” says Graham. To counter this, it’s crucial to document your company’s mission, values, and processes before rapid growth sets in.
Graham advises, “Establish clear principles and communicate them constantly. This helps in aligning everyone with the company’s goals and maintaining cohesion.”
2. 50 to 200 Employees: Building the Framework
This phase is like the formative years before adolescence, where the foundational values and culture of the company are solidified through effective growth management. In fact, it’s a time for careful hiring and maintaining high standards. According to Graham, “Early hires shape the company’s future. Moreover, it’s vital to ensure that you’re hiring people who align with your values and swiftly address underperformance.”
3. 200 to 750 Employees: The Growth Spurt
In this stage, the company starts to take on the characteristics of a teenager, experiencing growing pains and developing its identity. Graham notes, “Scaling at this size requires a focus on maturity and adapting to new challenges. It’s crucial to manage company culture and address any negative trends proactively.”
4. Over 750 Employees: The Mature Organisation
When a company surpasses 750 employees, individual identities often shift from being part of the company to being part of specific teams, making effective growth management crucial. This phase can also introduce internal politics as individuals begin to act in their own interest. Graham highlights the need for strong communication and clear connections between individual contributions and company goals to mitigate these issues.
Managing Scaling Challenges
Graham’s advice for leaders during scaling is to normalise the emotional experiences of their teams and focus on forward momentum. For instance, rather than reacting to insecurities, encourage team members to view new roles as opportunities to build new, exciting projects.
She also suggests setting up regular check-ins to monitor how team members are adapting to their new roles and addressing any issues that arise.
Effective Growth Management: Conclusion
Scaling a startup presents complex challenges, but with proactive management and a focus on clear principles, companies can navigate these growing pains effectively. By embracing change, communicating clearly, and maintaining a strong culture, startups can transform their growing pains into opportunities for greater success.
