The Art of Scaling: Common Pitfalls and How to Avoid Them
When it comes to scaling organizations, one of the critical challenges many startups face is finding the right balance in processes and structure. The key is not to swing to either extreme - being completely process-averse or overly structured. Instead, successful scaling requires finding the optimal balance where processes enable rather than hinder growth.
A practical approach to maintaining this balance is regularly auditing existing processes. This includes evaluating recurring meetings, examining workflows, and questioning whether existing structures still serve their intended purpose. The goal is to maintain only what adds value and removes what doesn’t.
The Business-First Approach to People Operations
One of the most significant insights from our discussion was challenging the popular “people-first” mentality. The more effective approach is being business-first and people-centric. This perspective recognizes that sustainable people practices must be grounded in business reality.
This philosophy becomes particularly relevant in decisions about benefits and compensation. While generous benefits might seem attractive, they need to be sustainable as the company grows. Short-term decisions that prioritize immediate employee satisfaction without considering business sustainability can ultimately harm both the organization and its people.
When Is the Right Time for HR?
For growing startups, the optimal time to make their first HR hire typically falls between 30-50 employees. However, this timeline can vary based on factors such as industry regulations and growth projections. Companies in highly regulated industries or those expecting rapid growth might need to make this hire earlier.
The type of hire needed varies based on company context. Fast-growing companies might require a Head of People focused on building scalable infrastructure, while stable, smaller organizations might benefit more from an HR generalist or a combined operations role.
Building Strategic Influence in HR
To increase strategic impact, HR professionals should focus on three key areas:
- Business Acumen: Understanding financial statements and business metrics is crucial. This knowledge enables HR leaders to participate meaningfully in strategic discussions and make informed decisions.
- Strategic Planning: Moving beyond reactive task management to proactive strategic planning is essential. This includes developing clear priorities and learning to manage competing demands effectively.
- Stakeholder Management: Success in HR requires understanding various stakeholders’ interests and finding solutions that align with both business objectives and people needs.
Looking Forward
The future of People Operations lies in its ability to blend business acumen with people expertise. The fundamentals of business - understanding financials, strategic planning, and operational efficiency - are transferable across industries and crucial for HR success.
For those looking to develop these skills, resources like SaaS CFO newsletters for financial literacy and formal education through programs like HBX Core Credentials of Readiness or relevant Coursera modules can provide valuable foundations.
My Final Thoughts
As someone deeply invested in the evolution of People Operations, this conversation with Melissa reinforced many crucial points about modern HR leadership. What particularly resonated was the alignment in our views about HR having a seat at the table - it’s not something that needs to be fought for, but rather earned through business understanding and strategic alignment.
The success of HR leaders today isn’t just about implementing good people practices; it’s about understanding the business deeply enough to design people strategies that drive organizational success. This means moving beyond administrative excellence to become true business partners who can speak the language of finance, understand operational implications, and align people strategies with business objectives.
Most importantly, this conversation highlighted that the path to HR influence isn’t through pushing for a seat at the table, but through demonstrating value through business impact. When HR leaders approach their role with a business-first, people-centric mindset, their strategic value becomes self-evident, and their influence grows naturally. This is the future of People Operations - not just a support function, but a strategic driver of business success.
Nahed Khairallah