From Startups to Organizational Leadership: Navigating Growth at Every Stage

Navigating the challenges of growth isn't just for startups—leaders in larger organizations face similar hurdles when managing smaller business units or stepping into new leadership roles. The key to thriving at any stage? Adapting your leadership style to match the evolving needs of your team and business, while taking full ownership of the systems that drive long-term success.

In the Harvard Business Review article, "The Five Stages of Small Business Growth," Neil Churchill and Virginia Lewis illustrate the journey every small business undergoes, from existence to maturity. The insights from this model aren't just for entrepreneurs—they're highly relevant for leaders in larger organizations who manage small business units, as well as those stepping into new leadership roles in government, academia, and research.

The five stages of small business growth—Existence, Survival, Success, Take-off, and Resource Maturity—offer a roadmap that mirrors the leadership trajectory across industries. From startups to established business units in multinational corporations, all leaders face the same core challenges: managing resources, delegating effectively, and aligning their teams to long-term growth objectives. Whether you're managing a new division within a large company or stepping into a leadership role in an academic institution, these lessons apply.

In Stage I (Existence), the primary concern is survival—finding customers and creating processes to deliver value. Leaders of newly-formed government or research teams face a similar challenge: proving the viability of their work and securing resources to move forward. In these roles, the ability to wear multiple hats and manage everything directly is crucial. But as the organization grows, so must your leadership approach.

By Stage III (Success), the question shifts from survival to scaling—whether to continue steady, stable growth or pursue aggressive expansion. This choice, especially in larger organizations, requires strong systems and delegation skills. One thing I always emphasize in The Responsibility Ethic is that this is where leaders must step up and take full ownership, not just of their team's successes, but also of the systems that drive performance. After all, growth without accountability is a recipe for disaster.

Take-off (Stage IV) and Resource Maturity (Stage V) are where larger organizations typically thrive. Here, the focus is on leveraging accumulated resources to drive innovation without losing the flexibility that brought them success in the first place. Whether you're in business, government, or academia, leaders need to balance scaling operational efficiency with maintaining entrepreneurial spirit and adaptability.

The message is simple: No matter the size of the organization or the industry, growth demands adaptability, accountability, and a clear understanding of where your business—or department—stands in its development. Leadership at every level requires foresight, and as Churchill and Lewis highlight, effective delegation, resource management, and strategic planning are key.

It's tempting to micromanage and hold onto control as organizations grow, but as I’ve written in The Responsibility Ethic, true leadership is about empowering others. Growth is not achieved through heroism but through creating systems where others can succeed. When leaders at all levels take full responsibility and step back from the operational trenches, that's when real progress is made.

So whether you’re leading a startup or a research lab, remember: growth isn’t just about more resources—it’s about aligning your leadership with the evolving needs of your team. And if you’re not sure how to manage that transition? Well, as I always say, that’s what coaches are for.

Final Thought: Growing pains are part of leadership. Just make sure you're stretching in the right direction—because nothing hurts more than growing without a plan... or an ergonomic chair. (Trust me on that one!)