When building the core management team of an entity, social capital, varying competencies, and cultural adaptations are relevant. However, as an entity evolves, the needs of the business also develop. Deciding which people to recruit, what positions are necessary, and what level of expertise to target are all important decisions for any budding enterprise. The people we chose to employ in the beginning, may not be suited for a more advanced version of their position. Therefore, as entrepreneurs, we must dissect the needs of the business and employ the right players, in the right positions, in the right timeline.
Phases of Growth
In the building stage of a startup the passion of the founders and the entrepreneurial spirit that drives them is perfectly suited to an entity in its infancy. Yet, as a business becomes more mature, regulations begin to apply, and organizational prowess is needed. Therefore, an evolution of leadership is likely to occur. Some members of the original team may be able to evolve into a different mindset, but many will pivot into other roles or fade out of management entirely. How much do top management teams matter in founder-led firms? Does a wonderful job of dissecting how the need to maintain control and make decisions using instinct instead of data can negatively impact the progress of a business. Knowing when, how, and why to employ experts instead of originators is key to avoiding a catastrophe of convenience.
Recognizing Key Players
One of the more difficult facets of enterprise growth to navigate is identifying who is best to play what role within the company. As founders pivot or phase out, who is passionate enough about the mission statement, yet qualified enough to lead the company to the highest level? Most entrepreneurs wish to see their brainchild grow through the successes of those who are closest to them, but that may not be a viable path forward. “A broad set of stakeholders, including employees, strategic partners, and investors, all can play a role in a venture’s downfall.” That’s why prioritizing employing subject matter experts after the initial launch is imperative to successful entrepreneurship.
