Rethinking Loyalty to Employees as You Grow

In the summer of 1812, Napoleon Bonaparte stood at the pinnacle of his power. As he prepared to invade Russia, he faced a crucial decision: who would lead his cavalry? He chose Joachim Murat, his brother-in-law and long-time companion. Murat had been with Napoleon since the early days, repeatedly proving his loyalty. But this decision would prove catastrophic. Murat's impulsive charges depleted Napoleon's cavalry early in the campaign, leaving the army vulnerable during its long retreat from Moscow, and we all know what happened next. As an Executive Coach, I see many leaders in similar positions. The very people who helped build their business from the ground up might now be holding them back. Oh, what to do....

The Seduction of Loyalty

When I ran my interactive agency, loyal employees were invaluable. They worked long hours, wore multiple hats, and believed in the team with unwavering commitment. Naturally, I felt a deep sense of gratitude towards these early employees.

But as my company grew, the nature of the challenges we faced changed dramatically. Skillset requirements shifted. The jack-of-all-trades approach that worked when we were a team of five no longer sufficed. I needed specialists, experts who could take on increasingly complex projects.

Occasionally, my loyal early employees found themselves out of their depth. The skills that made them invaluable in the early days did not translate to the needs of a growing organization. I needed someone who could implement complex systems, not someone who was good at cobbling together quick fixes.

Poor BlackBerry

BlackBerry, once the dominant force in the smartphone market. In the early 2000s, co-CEOs Mike Lazaridis and Jim Balsillie built the company from the ground up, surrounded by a team of loyal engineers and executives. But as the smartphone market evolved, with Apple's iPhone and Google's Android offering touchscreens and app ecosystems, BlackBerry clung to its old ways. Lazaridis and Balsillie, loyal to their original vision and team, dismissed these new trends. They promoted from within, resisting outside perspectives that might have helped them adapt.

The result? BlackBerry's market share plummeted. By the time the company adopted touchscreens and a new operating system, it was too late. Loyalty to old ideas and old teams had cost them their market dominance.

Balancing loyalty with the needs of a growing business isn't easy. But here are a few practical ideas I found helpful:

Redefine Loyalty - Loyalty should mean doing what's best for the company's future, not just maintaining the status quo. Have honest discussions with your early employees about the changing needs of the business. I recall downsizing an agency I worked for back at the DotCom bust, I included myself on the list of names to cut because I didn't see my particular skillset as being the best match for a downsized team.

Bring in Fresh Perspectives - Hiring experience from outside can provide invaluable insights and expertise. Fresh perspectives that will lead to different approaches.

Celebrate the Past, Focus on the Future - Honor the contributions of your early employees, but make it clear that the company's focus is on future growth and adaptation, if you want to be here for years to come, you'll have to grow with us.

The Founder's Dilemma

As a founder, I faced this loyalty dilemma. Torn between gratitude for past contributions and the need for future growth, I think of Abraham Lincoln. When he assumed the presidency in 1861, he chose a "Team of Rivals," bringing in political opponents who possessed the skills the nation needed in its hour of crisis. Lincoln's wisdom lies in recognizing that effective leadership sometimes requires looking beyond personal loyalty to focus on competence and the greater good. The loyalty dilemma is a tough challenge. It requires emotional intelligence, strategic thinking, and often, difficult decisions. But being aware of it is the first step.

Your ultimate loyalty should be to the vision that drove you to start your company in the first place. That vision likely involved creating something larger than yourself, something that can grow and evolve beyond its humble beginnings.Honoring that vision might sometimes mean making choices that feel disloyal in the short term. But true loyalty – to your employees, your customers, and yourself – means building a company that can thrive and grow, creating opportunities for many rather than clinging to the past.

As I coach, I encourage my clients to build their teams based on the challenges of the future, not the battles of the past. Their early, loyal employees will always be an important part of their company's story. But the next chapters might need to be written by different hands.

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