How To Lead A Scaling Business

Growth: it’s the universal business aspiration. But delivering it is only half the battle. As any business leader will tell you, managing it is just as much of a challenge. When a company morphs from a few hires into an established enterprise, potentially spread across multiple geographies, leadership styles must adapt accordingly.

For practically any organization, there are proven strategies for managing complexity. Two-way feedback sessions between managers on different tiers can be helpful, so too careful goal setting to align every individual’s development with what the business is ultimately trying to achieve.

But not all advice is so one-size-fits-all. Mike Henderson, HSBC UK’s Head of Leveraged Finance, says that ‘‘businesses need to consider the unique dynamics of their industry, market, organizational structure, culture, and ultimate ambitions to determine which leadership strategies will yield the greatest results.’’

Here, three experienced business leaders offer leadership advice for different growth scenarios…

You’re Leading: A Startup You Founded, That’s Rapidly Scaling

Learn From: Michael Cockburn, CEO And Founder Of Desana

Michael Cockburn, CEO and founder of Desana

Desana simplifies how mid-market companies handle their office space: Its software lets users manage, pay for, and use their own facilities or flexible workspaces as required. Founded in Edinburgh in 2018, it now services 72 countries and employs over 50 people across the US, Europe, and Asia. Here, its founder Michael Cockburn shares his top three leadership tips…

Let Go Of “Past You”

Cockburn admits he was reluctant to accept how his relationship with the team was evolving.

“It’s particularly challenging to realize that you’re no longer one of the gang; people see you as the boss,” says Cockburn. “And that is challenging personally, because you think you are still one of the gang.” It’s paramount you let that go, and embrace your more “grown up” role. “As a founder, you are synonymous with the business, and as the company matures, so must you.”

Don’t Micromanage, “Calibrate”

As the business gets bigger, you’ll no longer be able to control everything. One way to balance company standards with employee autonomy is to foster a culture in which employees are likely to act in the way you expect.

“I like everybody to align with some core principles of how we think things through at the company before they get full autonomy,” he says. “Because if you don’t calibrate, and then you give people autonomy, you dilute the organization, especially at 50 people: It’s very easy to tip the culture into something that it doesn’t intend to be because of a powerful personality.”

He admits that this process itself might feel like micromanagement initially but, he says, once everyone is on the same page it means the boss doesn’t have to constantly intervene. How best to “calibrate” people? Communication is key, and it should incorporate multiple channels. In addition to training and coaching, consider newsletters, videos, webinars, posters, or meetings. Reward those who best exhibit the desired behaviors.

See Yourself As A Work-in-progress

A scaling business should be seen less as a vindication of your leadership abilities, and more as a prompt to work ever harder on them. “I’m constantly trying to understand what makes a good leader,” says Cockburn, “and constantly speaking to folks who are way ahead of where I am.” Cockburn says that one area he is working on is humility. “It’s the most important trait that I have had to develop in myself as a leader,” he says, noting that it isn’t just about being “a nice person” but warding off complacency. If leadership constantly assesses its own strengths and weaknesses, then so will employees, promoting creeping excellence within the organization.

You’re Leading: A Business You’re Ready To Step Back From

Learn From: Aleksandra Pedraszewska, Cofounder And Former COO Of VividQ

Aleksandra Pedraszewska, Cofounder And Former COO Of VividQ

Aleksandra Pedraszewska cofounded the “holographic display” business VividQ in 2017, after meeting her cofounders while doing her Master’s at Cambridge. In mid-2023, after raising almost $30 million over six years, scaling to 50 people, and expanding commercial operations into the UK, US, and Taiwan, VividQ entered a more mature phase. Pedraszewska decided that it was best for the business, and for her own development, to move on.

Put Vanity To One Side

It might seem counterintuitive, but a founder stepping down for the good of the business is relatively common in startups. As they scale, the direction, priorities and requirements of a business can shift radically. And since the founder is almost certainly a shareholder, and therefore incentivised to think commercially, many take such a decision in their stride. The crucial thing is to remove ego from the equation and dispassionately assess the situation for what it is.

Pedraszewska was serving as COO, moving her focus between product management, people operations, and marketing as the company grew, but by the end of her tenure was spending most of her time covering the CFO role. As the company geared up for larger funding rounds, however, “our investors’ profile was shifting from tech-driven to finance-driven,” she says, “reinforcing the need for a formal CFO role.” What’s more, as the scale-up phase tapered off and the focus shifted to more sustainable operating income, distributing responsibilities among fewer senior executives could help the bottom line. To her, the decision was obvious.