Insprie

Situation 06 / Leadership & Scale

The business has outgrown its leadership structure.

Written by Ella Crosswell, Partner

What gets a company from $1 million to $10 million is not necessarily what gets it from $10 million to $50 million.

An executive standing alone in a glass-walled meeting room, seen through the glass with a team working beyond

The situation

The founder is still approving almost everything.

Senior executives wait for decisions.

Responsibilities overlap.

Nobody owns some important functions while three people appear to own others.

The organisation has grown, but the way decisions are made hasn't.

This is common.

Founder-led businesses often succeed precisely because their founders move quickly, obsess over detail and stay close to everything.

Those behaviours can be enormous strengths.

Until the organisation becomes too large for one person to remain at the centre of every decision.

What matters now

This isn't automatically a conversation about replacing the founder.

It is a conversation about designing the organisation the next stage requires.

  • What should the founder continue doing?
  • What should they stop doing?
  • What capabilities are missing?
  • Who genuinely owns each business outcome?
  • What should be delegated?
  • What needs stronger management?
  • And what role does the founder actually want in three years?

What we would do

Start with the business rather than the organisational chart.

Define the next stage of strategy.

Then determine the leadership capabilities required to deliver it.

That can mean:

  • clarifying executive responsibilities
  • redefining founder and CEO roles
  • strengthening the leadership team
  • establishing delegations
  • introducing proper management reporting
  • redesigning meeting cadence
  • creating accountability around KPIs
  • recruiting missing capability
  • succession planning
  • coaching founders and executives through the transition

The bigger lesson

Companies rarely scale simply by adding people.

They scale by changing how decisions are made.

A founder should remain one of the organisation's greatest assets.

They shouldn't become its busiest approval process.

Relevant capabilities

Organisational DesignFounder AdvisoryExecutive LeadershipGovernanceStrategyScale

More Situation Notes

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