Thread: Founder/CEO reached out this week for advice. 18 people, one other co-founder, just closed the Series A. Specifically wanted to know how do you learn "trust others" and "distribute power" without "jeopardizing what has been built thus far".
First, huge congrats, Series A a HUGE milestone! And big props for approaching subject with honesty and open mind. Second, suggested she look at this through the lens of managing shift from a 2-tier org (mgr->individuals) to a 3-tier org (m>m>i).
Assuming mgrs have 7 directs on avg, shift happens between 8-57 ppl. Usually around 20-25 ppl. A 2-tier org is flat, everyone reports to CEO (or other co-founder) & knows what all others doing, roles are fungible, decision making is obvious, CEO can direct all decisions
3-tier org is different. First, department starts to form. CEO needs to decide what their 3-5 direct reports are and what they run. Should I combine Sales & marketing? Sales and Support? Product & Eng? Those decisions are very personal and context specific.
Second, communication becomes fragmented. Time to start doing weekly all hands (group lunch?) with open Q&A go keep everyone on same page. Third, roles start to matter. Time for role definitions, common artifacts - value repeatability in how works get done.
Fourth, alignment more complicated. Individuals now have both a boss and a CEO, possibility exists for conflicting signals. Be careful not to override your mgrs & make them ineffective, but work on alignment and let them work with their teams. Trust comes with alignment.
Good news is at this size you still know everything that is going on.
Key is to not see as "losing control", but instead focus on grooving into a new structure. And, of course, look forward to building a 4-tier org when you get to 100-150 ppl and continue #theclimbtoabillion
Key is to not see as "losing control", but instead focus on grooving into a new structure. And, of course, look forward to building a 4-tier org when you get to 100-150 ppl and continue #theclimbtoabillion
