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In this week’s episode, I’m diving into a topic that’s close to the heart of every entrepreneur: building a highly productive company that maintains its edge as you scale.
When you start a business, you’re the captain of a small sailboat, intimately involved in every maneuver. Yet, as your team expands, this sailboat transforms into a cruise ship. Steering it isn’t just about your hand on the wheel anymore; it requires a cohesive crew to keep everything on course.
Many startups hit a snag when they grow to around 40 to 50 employees, because informal processes that worked for smaller teams start to buckle under the weight of expansion.
In addition to more formal processes, culture initiatives, and management structures, there are 6 critical areas that founders can focus on to enhance productivity and glide smoothly through phases of company growth.
1. Focus on One Big Goal at a Time
It’s all too tempting to chase every shiny opportunity that comes your way. Who wouldn’t want to revolutionize multiple industries simultaneously?
However, trying to do everything often leads to achieving nothing of significance. Think of it like learning five musical instruments at once—possible, but it’s likely you’ll master none. By zeroing in on one significant goal, you align your team’s efforts and create a unified direction.
As your team grows past 50 people, this alignment becomes crucial. If your main focus is growing your user base, anything that doesn’t contribute to that mission is a distraction. You don’t grow fast by doing many things, but by doing ONE thing extremely well.
2. Design Work Processes Wisely
This isn’t about imitating the industry giants or clinging to past methods. It’s about scrutinizing your processes—identifying what truly adds value and what doesn’t.
Are there unnecessary hurdles slowing you down? Bottlenecks frustrating your team? Address these early. As your company grows, implementing change becomes trickier.
Approach work design with purpose by questioning current methods. For instance, ask:
- In an ideal world, how would we want to do work and why?
- What do we need to meet our customers’ expectations?
By addressing these, you ensure your processes evolve with your organization’s needs.
3. Be Explicit About Communication Channels
As your team expands, clarity in communication becomes vital.
Define where different types of communication should happen. For example, ensure all action items from meetings are documented in a shared space. When everyone knows where to find information and how to share it, misunderstandings decrease and accountability increases.
Embedding these habits early ensures they’re passed on to new joiners, maintaining effectiveness as you scale.
4. Embrace Technology Thoughtfully
When workloads increase, the instinct might be to hire more people. Yet, adding to headcount isn’t always the best move.
Consider technology to eliminate redundant tasks, streamline recurring work with templates, and automate where possible.
Implementing AI wisely can significantly boost productivity. Set clear guidelines on AI’s use to ensure it enhances rather than complicates your operations.
5. Focus on Outcomes, Not Activities
It’s a common pitfall to equate busyness with productivity.
Instead, work with your team to set clear, measurable goals. It’s about the results they achieve, not the hours logged. This shift in mindset empowers teams to work efficiently and take ownership.
Micromanagement can crash productivity; instead, hold people accountable for results. If an employee finds a different method to achieve the desired outcome, and it works, let them run with it. This fosters innovation and shows you value their expertise.
6. Monitor Capacity Metrics
Invest time in understanding your team’s workload. Know how much effort goes into producing your company’s outputs.
Monitoring these metrics helps you identify when your team reaches full capacity and prevents burnout.
A well-rested team is more creative and productive. Expanding your team becomes a strategic decision based on actual needs, not guesswork.
By applying these principles, you’ll not only streamline your operations but also create a positive work environment where your team can thrive.
Stay tuned for the next episode, where I’ll tackle a key decision: having HR in-house or outsourced.
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Nahed Khairallah