Numerous promising start-ups fail in the first 20 months,
after the initial financing & infusion of capital. As they attempt to scale
their business, people management is one of the main places this begins to
unfold.
A common and worrisome
pattern that emerges as start-ups begin to grow, goes something like this. Your
business is doing well. Your revenue is on the upward climb as well. Your
long-term visions are transforming into real-life outcomes. This necessitates new
vacancies, that need to be filled, urgently and rapidly. And your first (and presumably
best) option, is to fill these positions, by promoting employees from within
your organization. Employees who started out young, with limited experience,
now find themselves stepping into shoes of a far larger size. The atmosphere is
crackling with potential, as you support and encourage teams to step into
leadership positions. It’s an environment charged with quick thinking wit, and
bold actions, to meet your company’s fast-paced growth.
Soon, in this whirlwind of expansion, cracks begin to
appear. Teams are expected to develop leadership skills at breakneck speed,
seemingly almost overnight. And you, as the CEO, are lacking in time and mind
space to pre-empt the challenges, that come with such unrealistic expectations.
Today’s article hopes to help you hurdle over some of the challenges
that occur, when middle management transitions into senior leadership
positions.
Growth that happens at
the pace of an eye-blink, seldom pans out as envisioned. Important timelines
get missed, and a vortex of pressure begins to build. Time is what the new team
head requests. And so, you decide to give it another month, only to realize
there seems to be a gross expectation mismatch. You begin to question your decision-making
capabilities. And more importantly, their abilities. Did you act in
haste? Is this person/team, the right fit for this role? Do I need to replace
them, and hire someone else? What do I now do with this person, who is
already promoted? The list goes on, as the building challenges begin to hijack
other important projects, that require the company’s focus and attention. What
follows is ebbing team confidence, inter-departmental blame games, and consumer
complaints, all testing the company culture in real-time. And these are just some
of the many changes that reverses the status quo, and replaces the optimism
this person, and the team felt, only a couple of months ago. You ask
yourself, did a growth opportunity just turn into a chaotic whirlpool of
blame and doubt?
Yes. Maybe, it did.
After all, the teams and you are left feeling confused, disillusioned and
aggressive. But here’s the thing – it’s never too late. It really is never
too late. You began a business knowing all too well, it may not always
be a bed of roses. You knew this, and honestly, it is what excites you. You may
not recall that feeling today, but it’s important to remember how far you’ve
come together, and deep down, you believe this team is worth holding onto.
With that in mind, let’s move onto understanding how
best, can you and your team re-frame the status quo. How can you help them (and
yourself!) befriend the unfamiliar and the uncomfortable? Your super-driven
team needs you - now, more than ever before.
Here are three places you can begin.
1. Set expectations
authentically and clearly:
Individuals
promoted to senior management roles need to understand, that the very skills
that got them the promotion, are going to be of little use going ahead. To
excel in their new role, they need new and different skills - Identify a few of
these skills together. Sit down and make a plan with teams/ individual on their
up-skilling timeline. Set your expectations with specificity. The key here is
‘specificity’ - the level of specificity is directly proportionate to the
quantum of leap. From their vantage point, they can’t know what they don't
know; invest in their growth. Invest in them, in a planned and organized
fashion; not as an ad hoc requirement you suggest, when things begin to go
south. It could be courses, or mentors, or coaches and advisors. When you
invest time and resources into their learning, the process itself will state
clearly and honestly what the expectations are; that growth hereon is
learning-focused.
Identifying sources of
intellectual and emotional support, and following through in a committed
fashion is a common-sensical step most start-ups underestimate; thus failing
even before they started.
2. Find the sweet spot
between the two extremes of micro-management and complete autonomy:
Enough and more has
been written on the detrimental effects of micromanagement - here’s a useful link here for those who need
a quick reference to its catastrophic effects - https://tracktime24.com/Blog/the-negative-effects-of-micromanagement
Let’s move on to the
other extremity - Complete autonomy. This extremity is an inefficient choice,
especially if made on the premise that this frees up your time as the CEO, and
you can divert focus to ‘other far more important tasks and projects’. This is
the #1 fallacy that you want to be wary of. Too much autonomy too soon, is just
plain overwhelming for any person. In fact, you probably will end up
spending more time fire-fighting all that goes unchecked for too long . What
you want to do instead, is plan your schedule (or an appointed mentor’s
schedule) a little more cleverly, to accommodate opportunities for support and
reflection to the newly promoted individual. Establish a timeline by which you
factor in some additional time that can be offered if needed, and prioritise it
into your calendar. Promotions (of mid management to senior management, at the
risk of sounding a bit corporate-ish) need more of your time initially, than
less. And think of this as an investment, that’ll give you returns in the
longer run. Autonomy needs to be phased out, to make it less overwhelming. This
prevents burning bridges on several fronts - Mentee self-esteem, your
relationships, company goals etc. Your intuition and sensitivity will play a
huge role here. No employee likes to feel they are being watched over, every
minute of the day. And at the same time, no employee likes to feel paralyzing
incompetency, when things aren’t turning out the expected way.
Define clearly what
you would like to know when. A clear sign that indicates that the process is
working, is when the information loop is consistently being bridged by the
individual you have promoted. Precise and consistent feedback from them to you,
is a clear indicator, that trust has been established, and efficiencies are
being built into the systems and process.
3. Double-dose on
emotional regulations and intelligence:
When you as a CEO prioritize emotional intelligence, it directly creates spaces of pause in chaotic environments. It allows you and your team, to detach from disserving narratives, so that you’ll are able to widen the lens and assess information objectively, especially when the pace of incoming information is fast and dynamic. Emotional intelligence facilitates self-leadership, and self-leadership is what is going to play an important role as your company scales. An emotionally intelligent leader is almost always collaborative, curious, and forgiving; and this is what’s going to shape sustainable growth for your start-up.
"The most effective leaders are all alike in one crucial way: They all have a high degree of what has come to be known as emotional intelligence. It's not that IQ and technical skills are irrelevant. They do matter, but...they are the entry-level requirements for executive positions." This quote is by noted psychologist Daniel Goldman, who coined the tern Emotional Intelligence in 1990.
Knowledge and
expertise here-on will be powerful, when based on a solid foundation of
emotional intelligence.
So to summarize. Set
expectations clearly and authentically. Let them know they are being valued, on
how fast they can learn and apply this knowledge intelligently and sensitively
across their teams.
Co create a plan that
spells out ‘The What’ that has to be learned, especially when the person you’ve
promoted, has little or no experience in the new role they’re stepping into. Be
prepared to invest time and money into ‘The how’ and re-emphasize your
expectations through tangible action points. And lastly, value emotional
regulation and intelligence and its importance to any process, hereon. You’ll
grow 10x faster when your teams are able to lead themselves first, as you’ll
move towards solving the big challenges boldly and unabashedly.