4 common traps and 4 ways how to deal with them
If the startup phase is about proving things out, the scale-up phase is about making things repeatable at scale. Scaling up requires a different set of skills, because you’re going from, say, 20 to 80 to 500 people. In the startup phase, you probably did not have many processes in place because communication went via personal relationships. But, when you’ve grown to an organization of 80-100 people, it’s quite different. You’re no longer in the process of developing and selling a product or service.
Instead, you’re developing and managing the systems that make or deliver the product or service. And as you scale a growing workforce is having growng expectations as well. Here are 4 challenges scale-ups usually encounter when it comes to people processes (Forbes, 2020):
The scale-up phase is common for establishing structures for predictable growth. But, what you gain in reliability, you lose in flexibility and freedom. This phase is full of trade-offs, and a delicate balance must be struck. Otherwise, this can have devastating consequences for the company, such as:
So, how can you ensure people grow with you? Let’s dig a little bit deeper!
A fact is that employees long for a meaningful job, and they want to be stimulated and developed. 87% of millennials rate growth and development opportunities as important to them in a job (Workforceinstitute). And Gen Z has even more specific needs. With regards to their own development they want (Deloitte, 2022) :
Okay. We get it. There’s clearly a mismatch here. Now what?!
Four hacks for scale-ups to improve their current practices:
1. Establish expectations
Clear expectations often start with a job description, but that description must reflect the employee’s actual work. You can do this by, for example, a competency profile.
What is expected from the role and seniority? Where to focus on for further development? Where is the delta to the next career step?
Example based on John Erpenbeck’s Competency Model.
2. Give regular feedback on the spot
When managers provide daily feedback (versus annual feedback), their employees are more likely to be more engaged, motivated and feeling appreciated for the job according to a study from (Gallup):
In addition:
- Fewer documentation requirements
- Eliminate ratings
- Fewer formal performance management steps
3. Make your feedback moments valuable
Future successful organizations should have development as a core value that the firm is organized around delivering. Usefulnes increases performance, engagement and fairness.
Here’s what you must keep in mind:
4. Standardize the process & automize what is costing you time
Systems and processes should go hand in hand with the phase you are aiming for. Once you have grown as a company, hierachies are in place, new managers lead autonomous teams…excel solutions or feedback “on the fly” are simply not doing your workforce justice. You can use the framework below to create alignment between your growth plans and the people processes.
We can solve these painpoints. Feedback. Simple, calibrated and action-oriented. Performance management at the push of a button. Schedule a Demo!.