Talent concentration and test pilots drive hypergrowth companies

Companies that don't grow too fast can afford some slack in their operations. Most likely the processes and systems are so well crafted that any individual contribution doesn't have a big impact. High performers and free-riders reach the same outcomes in medium term, but only over the long term do high performers climb the ladder.

Hypergrowth companies don't have the luxury of well defined processes – it's by definition impossible because processes require organizational consistency and hypergrowth entails constant change. They must make due with some frameworks and their people. Everyone has an impact and it shows pretty quickly who is bringing home the bacon. If 100% of the outcome is dependent on people and how well they work together, then eventually talent concentration is the glue that keeps it together. Or not.

Test pilots are not the most reasonable people

Whenever I watch videos about space travel it amazes me that there are people who risk their lives for something completely new. Take a second to think about it – when have you ever done something that someone hasn't mastered many times before? Personally, I have never done something that someone else hasn't been great at. Test pilots are not chosen because they can do the best stunts or land the Jumbo Jet. They are chosen because they can do both, and have the guts to try. They are the epitome of talent. Startups need test pilots.

Talent concentration is probably the most important factor for hypergrowth companies

The people who perform well at hypergrowth companies are the ones who know their craft well + are looking to have an impact + are ready to learn and challenge their assumptions. Getting a lot of these people working together yields something that looks like magic from the outside. On the flip side, low talent concentration will be increasingly problematic the faster a company grows – still possible, just much harder. Conclusion: the faster a company grows, the higher the talent concentration required to succeed.