Editor's Note: Growing a business requires not only robust, scalable systems but also leadership that adapts as well. In the third article of this series, we delve into how leadership roles must evolve as the organization grows. We'll discuss the shift from hands-on management to strategic oversight and the importance of fostering a culture that supports sustainable growth.

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Leadership plays a pivotal role in any organization's success, but as companies grow, the demands on leaders can evolve and increase significantly. What worked within your smaller, more entrepreneurial setting may not be effective in the larger, more complex organization. In this third article of our series, we examine how leadership must adapt to guide a growing organization successfully, drawing on principles from Designed to Scale.

The Leadership Shift: From Operational to Strategic

In the early growth stages of a business, leaders are often deeply involved in day-to-day operations. They make quick decisions, solve problems directly, and have a hands-on approach to managing their teams. However, as the organization succeeds, this level of involvement becomes unsustainable. The leader's role must shift from operational management to enterprise-level strategic oversight.

This shift requires a change in mindset. Instead of focusing on the immediate tactical tasks, leaders need to think long-term, anticipate challenges, and position the company for future success. Delegating more operational responsibilities to trusted managers and focusing on the bigger picture—setting the direction for the organization, aligning teams around common goals, and fostering an environment that supports innovation and growth must become the norm. As one of my retired colleagues, Mike Sleppin, often quipped, "If the Generals are in the foxholes with the corporals and privates, who is running the war”?

Building a Leadership Team

Building a strong leadership team is crucial as an organization scales because no single leader can manage everything alone. This team should consist of individuals with expertise in their respective functional areas but, equally important, share the company's core values and vision. Creating a cohesive leadership team is undoubtedly hard work, but it helps ensure that all aspects of the business are aligned and moving in the same direction.

Designed to Scale emphasizes the importance of hiring leaders who are not only skilled but also adaptable. In a growing organization where change is constant, leaders must navigate this change effectively. They should be capable of leading their teams through transitions, whether integrating new technologies, entering new markets, or scaling operations.

Fostering a Growth-Oriented Culture

Leadership isn't just about managing tasks—it's about consciously shaping the organization's culture. A growth-oriented culture encourages innovation, embraces change, and rewards those continuously seeking improvement. Leaders play a key role in cultivating this culture by setting the tone and leading by example.

Communication is a critical component of this. As organizations grow, ensuring everyone is on the same page becomes more challenging. Leaders must invest their energy in prioritizing clear, consistent communication to align teams around the company's goals and ensure everyone understands their role in achieving them.

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Moreover, leaders should focus on empowering their employees. I recommend that growing organizations move from a hierarchical command-and-control decision-making structure to a flatter, decentralized model. Leaders must develop the confidence and trust in their teams to make sound decisions after providing them with the tools and information they need to succeed. 

Actionable Steps for Executives

1. Evaluate Your Leadership Approach: Reflect on how your role has evolved as your company has grown. Are you still too involved in day-to-day operations? Consider how you can shift your focus to more strategic responsibilities.
2. Build a Strong Leadership Team: Identify the key areas of your business that require strong leadership. Invest in hiring or developing skilled leaders who will easily align with your company's values and vision.
3. Foster a Growth-Oriented Culture: Encourage innovation and continuous improvement within your organization. Lead by example, and ensure that your actions reflect the values and behaviors you want to see in your team.
4. Prioritize Communication: As your organization grows, communication becomes more challenging and critical. Implement systems and practices that ensure clear, consistent communication across all levels of the organization.

Only by evolving your leadership style and building a strong leadership team can you better guide your organization through the complexities of growth. Ultimately helping your company scale effectively and remain agile, innovative, and aligned with its core values.

In the final article of our series, we'll explore the role of organizational culture in scaling. We'll discuss how to preserve and strengthen your culture as your company grows and why this is vital for long-term success.