Why Does a Once-High-Performing Startup/ Turnaround Team Struggle as the Business Grows?
Darrell Tan ????????
Transformative CEO | Specialize in Oleochemicals & Derivatives | Business Startup, Turnaround & Scale-Up Strategist | Accredited Trainer
Understanding the Challenge
In the early days of a startup, the team often feels like a close-knit family. There’s an abundance of passion, creativity, and a shared mission. The startup energy is often raw and dynamic, with everyone contributing wherever needed. However, as the business grows, the organization must evolve from a fluid, flexible entity into a more structured and disciplined one. What was once a strength can become a weakness if not managed with intention.
From a deeper perspective, this transition is not merely operational, and it is an energetic shift. The business is shedding old skin and stepping into a new level of its purpose. This evolution often challenges team members to either grow alongside the business or step out if they are no longer aligned with its emerging vision.
Reflection: What old dynamics and patterns need to be released for your organization to grow into its next stage of purpose?
The Energetic Impact of Blurred Boundaries
When roles remain undefined and discipline is weak, the organization can begin to lose its integrity. It can start to feel like a charity organization where excuses are accepted, accountability is weak, and personal relationships overshadow professional expectations. This often happens when the leader prioritizes harmony over truth, avoiding difficult conversations to maintain a sense of comfort.
This is more than a management issue; it is a reflection of the energy within the organization. When leaders and team members are too emotionally enmeshed, the energy of the business becomes stagnant. Influence shifts from those who act with clarity and purpose to those who operate through personal connections and hidden agendas.
Reflection: Where might a desire to avoid discomfort be preventing you from making necessary changes within your team?
External Threats as Mirrors
A weak and fragmented team creates internal problems and attracts external threats. Competitors, stakeholders, and even partners can sense this energetic instability. They may exploit it by pushing their own agendas, undermining leadership, or creating divisions.
External threats are not just obstacles but mirrors reflecting internal misalignment. They reveal where the organization is vulnerable, not just structurally but spiritually. They can be seen as invitations to strengthen the organization's energetic boundaries and reclaim its purpose.
Reflection: What external challenges might be showing you where your organization needs to heal and strengthen from within?
Why This Happens: A Deeper View
The root cause often lies in an imbalance between compassion and accountability. In the startup phase, a relaxed culture may have felt nurturing and inclusive. However, as the organization matures, it requires a shift toward a more disciplined and purpose-driven culture. When leaders struggle to set boundaries, manage performance, or make difficult decisions, it creates a vacuum. This space can then be filled by those whose actions are guided by fear or personal gain rather than a shared vision.
This isn't just a managerial issue, it's an energetic misalignment. When discipline is missing, it creates a kind of spiritual drift. Team members may avoid responsibility, clinging to old narratives or deflecting blame outwardly. This not only stagnates the team's growth but also signals to the universe that the organization is not ready to move forward.
Reflection: Are you holding onto old ways of leading that no longer serve the organization’s highest good?
Embracing Change as a Spiritual Practice
To truly transform, the organization must rebuild its strength from within—not just by shifting roles and responsibilities but by realigning with its core purpose. Retiring team members who no longer align with the vision is not a punishment but an act of integrity. It allows both the individual and the organization to step into greater alignment with their true paths.
Bringing in new talent is not just about skill sets but about attracting those whose energy and purpose resonate with the organization’s evolving mission. This process is akin to pruning a tree—not to harm it but to create space for healthier growth.
Reflection: What if letting go of certain team members is not a loss but a necessary step to create space for new growth?
When the Lion Needs to Roar
In my own leadership journey, I encountered a time when internal misalignment opened the door to external disruption. Competitors and other stakeholders quickly sensed the discord within our organization and attempted to exploit it. At first, I saw this as an external threat, but I soon recognized it as a mirror reflecting deeper internal issues. The truth was, our business had outgrown its original structure, and our team needed to evolve to meet new demands.
It was like a gated barn where I, as the leader, played the role of the lion, protecting and nurturing the collective interests of all the animals under my care. But when the internal structure became weak, external forces saw an opportunity. These outside parties often disguised themselves as allies, offering help with hidden agendas. Like predators at the edge of the fence, they would lure internal team members with enticing offers, tempting them with short-term gains over long-term loyalty. They would find the weak spots in the organization’s “fence” and exploit them. Sowing seeds of doubt, promising greener pastures, or using internal influences to challenge my leadership and destabilize the culture.
When I recognized this, I knew it was time to take a firm stance. I initiated a clear & assertive communication process, set strong expectations, and made the difficult decision to part ways with those who could not align with the organization’s evolving vision. However, as I imposed control and demanded higher performance, the internal pushback intensified. Some team members began to lose trust, feeling that the sudden shift in leadership style was unjust. They saw the lion's roar not as a call to realign and protect the collective good but as an unfair accusation.
Instead of embracing the changes, some retreated into denial, projecting blame, and viewing the increased accountability as a personal attack. Certain individuals who believed they were indispensable began to test my resolve. They subtly threatened that the organization would suffer if they left, using their perceived importance as leverage to resist change. These team members mistook their long-standing presence for irreplaceability, not realizing that no one is above the organisation's mission.
Bringing in fresh talent with new perspectives was not a quick fix but a necessary step toward realigning the business with its purpose. It helped strengthen the team and began to patch some of the weak spots in our metaphorical fence. However, the battle is far from over. The organization remains in a critical fight for survival, with external threats circling and internal resistance still simmering beneath the surface.
Every day feels like walking a tightrope, balancing the need for decisive control with the importance of maintaining trust and unity. While some team members have adapted to the new expectations, others continue to push back, testing boundaries and probing for signs of weakness. The external forces, always vigilant, are ready to exploit any cracks in our defenses, using uncertainty and doubt to further their agendas.
True leadership at this moment requires not only strength and clarity but also resilience and unwavering focus. The lion’s roar is not just a call for discipline but a signal of endurance and an assertion of purpose.
It is about setting a clear tone that the mission is more significant than any individual ego and that the organization’s well-being must come first.
This is not a one-time challenge but an ongoing struggle to rebuild trust, restore alignment, and protect the team's collective interests.
Reflection: Are your leadership actions reinforcing the organization’s strength and purpose, or are they creating new vulnerabilities?
Action Steps: Bridging Practicality with Purpose
Reflection: What new practices can you introduce to help the team embody discipline and purpose in their daily actions?
Quote to Inspire
"The strength of the team is each individual member. The strength of each member is the team." - Phil Jackson
This quote emphasizes that teamwork goes beyond just collaboration; it highlights the fundamental truth that the whole organization reflects the qualities of its individual members. A strong organization is built by individuals who are not only skilled but also deeply aligned with its mission. By fostering both personal and collective growth, you can create an organization that is resilient to external challenges and capable of thriving in times of change.
Final Reflection: What is one action you can take today to bring your team into greater alignment with its higher purpose?