Striking a Balance: The Perils of New Leadership in Startups

As a founder or part of a founding team in the fast-paced world of startups, it's easy to overlook the significance of people strategy while juggling countless other tasks. I've personally experienced the impact of neglecting this crucial aspect, and I want to share my insights with you.

Let me tell you a story. There was a startup I worked with that was rapidly scaling. Our main challenge was our go-to-market strategy. Despite hiring a seasoned sales leader, things weren't taking off as expected. The leadership team decided to bring in a highly experienced commercial leader to shape our sales function. While this person had an impressive background, their lack of startup experience and adherence to traditional methods created unforeseen complications.

Within a few months, our head of sales left, the COO resigned, and the rest of the core team expressed dissatisfaction. We had changed, and the vibrant startup culture we initially embraced seemed to be slipping away. Despite this, the remaining leadership team was content with the contributions this new leader made in solving complex issues and bringing in significant partners even if sales remained stagnant.

Understanding the challenges of change and the dynamics of team formation, I advised my colleagues to persevere. I shared my knowledge with the new leader, sometimes with patience and sometimes with frustration, as I empathised with the team's struggles every step of the way.

However, it felt like the dream company I joined was being dismantled. The hard work I put into cultivating an open and engaging culture was disregarded to accommodate outdated approaches that slowed us down.?

When I questioned these new ways of working, I was met with the response, "That's how I build teams." It didn’t feel compelling enough for me and I strongly disagreed, and along with the team, I experienced emotions ranging from tears to rage to despair.

Unsurprisingly, our progress stagnated. New products failed to gain traction, key team members continued to leave, and ultimately, I left. The business was left with a skeleton crew desperately trying to stabilise until securing additional investment.

While this is a worst-case scenario, it highlights the consequences of adding a management layer without considering its impact on the team. The core members, who were once a performing team, were pushed back into the "forming" stage of group dynamics. They felt disconnected from decision-making processes, leading to dissatisfaction, attrition, and a loss of connection to the company's original vision and purpose.

The leader in question genuinely wanted success and a thriving organisation, but the absence of shared experiences and a collective history hindered the formation of an effective and cohesive team. We prioritised speed to achieve results when we should have taken the time to learn how to operate as a team.

Here's what I learned from this experience, and I want to share these insights with you:

1. Give new leaders time: Allow them to learn about the business, the team, and the individuals. Slowing down initially can lead to greater speed and success in the long run.
2. Embrace transparency: Keep the team informed about changes and the reasons behind them. Transparent communication builds understanding and reduces resistance.
3. Listen to your team: Actively listen to their concerns and address them. The grapevine might carry valuable insights, so pay attention to the murmurs.
4. Silence is a warning sign: When the outspoken voices in your team go quiet, it's a clear indication of potential resignations and dissatisfaction. Act before it's too late.
5. Involve team members in decisions: Your team members were hired for their expertise, and their insights are invaluable. Engage them in decisions that impact their areas of expertise.
6. Carefully consider your business structure: Avoid creating silos and promote collaboration, knowledge sharing, and connection to foster growth.
7. Establish a clear decision-making process: Team members need to understand the decision-making framework and feel confident in their ability to contribute. This builds trust and drives the necessary changes for scaling your business.

Remember, building effective teams goes beyond assembling individuals; it's about fostering connection, collaboration, and a culture of open communication and continuous growth. Take the time to plan, communicate, and listen when adding new team members, especially at senior levels, or you risk losing the very people you rely on for success.

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