Importance of Leadership in Business Scaling

Fact: Private Equity’s biggest risk in #CPG isn’t Market Conditions, it’s Leadership. PE firms spend millions optimizing operations, supply chains, and marketing—but what about leadership? 🔹 72% of PE executives believe their portfolio companies struggle due to misaligned leadership (McKinsey & Company). 🔹 One in three newly hired executives in PE-backed firms fail within two years (Heidrick & Struggles). Why? -The skills that make a founder great don’t always translate to PE-backed scaling. -Legacy CPG leaders may lack agility in today’s digital-first market. -PE often prioritizes financial performance over leadership adaptability. Here's what I've observed across hundreds of placements, The Founder's Paradox: Building a successful brand requires different leadership skills than scaling it. What got you to $50M won't get you to $500M. Traditional CPG experience alone isn't enough in today's digital-first marketWhat’s the fix? Firms that prioritize leadership assessment pre-deal see 25% higher EBITDA growth post-acquisition. Takeaway: Leadership isn't just another hiring decision - it's a fundamental investment strategy. When firms prioritize immediate performance over leadership adaptability, they're setting themselves up for long-term challenges. Working on a PE consumer goods acquisition? Let's talk about leadership assessment before you finalize that deal. #PrivateEquity #ConsumerGoods #Leadership #ExecutiveSearch #FMCG

The #1 reason companies stall isn’t market conditions or operational inefficiencies-it’s that the CEO doesn’t evolve fast enough. They assume that if their company is growing, their leadership style will naturally evolve with it. Wrong.  The truth: The leadership style that gets you to $10M will break your company at $50M. The mindset that scales you to $50M will choke growth at $100M. Scaling a company isn’t just about revenue growth. It’s about leadership growth. Most CEOs don’t evolve fast enough. The Leadership Bottlenecks at Each Growth Stage:  1. $0 - $10M: The Founder Hustle Stage  Bottleneck: Founder Dependency At this stage, the company moves as fast as the founder. Decisions are centralized, execution is fast, but everything runs through YOU. ✅ Leadership Shift: From Doer → To Delegator Build a leadership team that owns execution so you can shift from operator to CEO. 2. $10M - $50M: The Process & Structure Stage Bottleneck: Lack of Scalable Systems The informal processes that worked at $10M start breaking down. Your early leaders may not be equipped to scale. The founder’s instinct-driven decisions need to be replaced with strategic leadership. ✅ Leadership Shift: From Hands-On Leader → To Visionary CEO Establish repeatable systems, a structured leadership team, and clear accountability. 3. $50M - $100M: The Cultural Crossroads Stage  Leadership Dilution & Company Identity Shift At this scale, culture is either intentional or it deteriorates. If the leadership team isn’t aligned, silos form, bureaucracy creeps in, and innovation slows. ✅ Leadership Shift: From Founder-Led Culture → To Scalable Leadership Culture Build a leadership pipeline—leaders who understand, protect, and scale your company’s DNA. 4. $100M+ The Enterprise Leadership Stage ✅ Bottleneck: Complexity & Loss of Agility The biggest risk at this stage? Growth slows because decision-making becomes bureaucratic. What used to be an agile, fast-moving company becomes slow and risk-averse. ✅ Leadership Shift: From Growth CEO → To Enterprise Leader Empower decentralized decision-making—hire leaders who own outcomes rather than waiting for permission.  Your Company Will Only Scale as Fast as You Do.  Every new revenue milestone requires a new CEO mindset, a stronger leadership team, and a willingness to let go of old ways of operating. If you don’t evolve as a leader, your company won’t either. 👉 If you’re a senior executive or CEO who wants to scale your leadership impact, message me ‘Executive Mastery’ and let’s connect. #ScalingLeadership #ExecutiveCoaching #CEODevelopment #BusinessGrowth #HighPerformanceLeadership #ScalingTo100M

My team scaled from 7 folks to 225+ in 4.5 years. One of the hardest things as a revenue leader when things go well is learning when / how to scale up. This applies to: - yourself - your team - your business As you take on bigger teams or more scope — you have *more accountability but less control* 😩 🔑 A tactical example: You had a team of 12 folks in GTM, you could put folks into a single conference room to announce decisions, align on changes ✅ They hear directly from the source— you. You get their feedback in realtime 🔑 While it’s overwhelming to do it all in those early days, you have full control. Now you double your team to 24, you are no longer in control. You have a layer of folks that represent you with the team. 😅 Most leaders aren’t intentional about evolving their leadership approach as they scale up 🛑 I mean it got them here- why change it. This is one of the biggest reasons we have the original head of sales get layered despite doing well 😢 One way to scale up is to create structure without losing speed 🏃♀️ example: How we operate as a team. Things like: 1️⃣ Standardized agenda categories for all meetings (discuss, update, decide) 2️⃣ Clear decision making process that’s publicly known (brainstorm, narrow down, decide, document, commit) 3️⃣ internal comms playbook to drive transparency (who is involved when) Your job as a leader is to *stay ahead* of the company’s growth curve and make the right changes to help reduce the thrash of hyper growth. Dont wait till it’s too late Happy scaling friends 🚀 #hypergrowth #cro #salesleader #tenure #startups #scaling

I have been reflecting on why some companies don’t invest in developing leaders and why some Founders/Entrepreneurs/CEOs don’t value it.    At times, these seem like extras when we’re looking for immediate ROI, they appear like one more thing in a long list of things to do, or as a distraction taking from your attention on your business. Some of these actions require you to slow down and work on building a better business, not a better widget at that moment in time. Feels really hard to dedicate time and investment away from direct productive revenue generating activities.   Things like leadership team camaraderie, team building, workshops, strategy sessions, leadership summits, culture development, etc.    The shift: The unscalable can often be exactly what we need to set off the spark, set us straight, or pull us from the day-to-day grind of business, forcing us to evaluate where our hard work and time is allocated. Want a better, bigger, more profitable business - better scale yourself and SLT as leaders. Want better productivity, skills, experience, expertise, and output - better invest in your people overall.   “The only thing worse than training your employees and having them leave, is not training them and having them stay.”    - Henry Ford   If you lean towards AI and tech automations taking over, and that makes leadership and people development less important, I would argue the opposite. The people aspects will grow in importance, especially in the depth and quality of collaboration, community, and clarity with communication and connection. In today’s rapidly changing climate, the requirement for developing our people and our leaders is no longer a nice to have, but is essential to driving sustainable results. Whether in tech, knowledge work roles, manufacturing, or in more “Main Street” businesses, people development in one form or another, remains as core to growth as any other area of the business. Maybe it’s not only our ability to adapt to AI and technological advances, but our ability to adapt our leadership and upskill people to grow with these advances, depending culture, human connection, and buy-in. >> LEADERS ARE THE ACCESS POINT TO WORKING ON THE BUSINESS, NOT IN THE BUSINESS   >> THE LEADER’S BEST USE OF TIME IS DRIVING FUTURE EFFICIENCY, NOT DRIVING CURRENT ROI >> THE WAY TO SCALE YOUR BUSINESS, IS TO SCALE YOURSELF. THAT’S THE LIMIT ON SCALING THE BUSINESS. >> YOUR ABILITY TO LET GO AS A FOUNDER IS WHAT DICTATES YOUR FUTURE GROWTH OF THE COMPANY

 𝗦𝗰𝗮𝗹𝗶𝗻𝗴 𝗖𝘂𝗹𝘁𝘂𝗿𝗲: 𝗧𝗵𝗲 𝗛𝗶𝗱𝗱𝗲𝗻 𝗞𝗲𝘆 𝘁𝗼 𝗘𝘅𝗽𝗼𝗻𝗲𝗻𝘁𝗶𝗮𝗹 𝗚𝗿𝗼𝘄𝘁𝗵 💬𝗬𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝘆’𝘀 𝗰𝘂𝗹𝘁𝘂𝗿𝗲 𝗶𝘀 𝘀𝗰𝗮𝗹𝗶𝗻𝗴 —whether you design it or not. 𝗙𝗶𝗿𝘀𝘁-𝘁𝗶𝗺𝗲 𝘁𝗲𝗰𝗵 𝗖𝗘𝗢𝘀, 𝗵𝗲𝗿𝗲’𝘀 𝗮 𝗿𝗲𝗮𝗹𝗶𝘁𝘆 𝗰𝗵𝗲𝗰𝗸: Culture doesn’t stay small when your company grows. Without intentional leadership, it can either become your greatest asset—or your Achilles’ heel. 🔥 𝗛𝗲𝗿𝗲’𝘀 𝗵𝗼𝘄 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝗮 𝗰𝘂𝗹𝘁𝘂𝗿𝗲 𝘁𝗵𝗮𝘁 𝗱𝗿𝗶𝘃𝗲𝘀 𝗲𝘅𝗽𝗼𝗻𝗲𝗻𝘁𝗶𝗮𝗹 𝗴𝗿𝗼𝘄𝘁𝗵: 1️⃣ Define what success feels like at your company: Create a shared vision your team can rally behind. 2️⃣ Reward behaviors that align with your mission: Reinforce the values that make success repeatable. 3️⃣ Lead by example: Remember, your actions define your culture more than your words. 💡𝗖𝗮𝘀𝗲 𝗦𝘁𝘂𝗱𝘆: A fast-growing health-tech startup faced high turnover and declining morale as the team scaled rapidly. Employees felt disconnected from the company’s mission. Together, we: ✅ Redefined the company’s core values and made them part of everyday interactions. ✅ Created a recognition program that celebrated mission-aligned behaviors, boosting morale. ✅ Trained leaders to model transparency and collaboration, strengthening trust across the organization. 🎯𝗥𝗲𝘀𝘂𝗹𝘁: Turnover dropped by 25%, employee engagement soared, and innovation accelerated, propelling the company into a leadership position in their market. 💼 𝗧𝗵𝗲 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻? The CEO reclaimed their confidence, fostering a culture that attracted top talent and turned the company into an innovation powerhouse. 📌𝗔𝘀𝗸 𝗬𝗼𝘂𝗿𝘀𝗲𝗹𝗳: How would your employees describe your company’s culture today? Is it driving—or draining—performance? 👉𝗟𝗲𝘁’𝘀 𝗱𝗲𝘀𝗶𝗴𝗻 𝗮 𝗰𝘂𝗹𝘁𝘂𝗿𝗲 𝘁𝗵𝗮𝘁 𝗳𝘂𝗲𝗹𝘀 𝗴𝗿𝗼𝘄𝘁𝗵, 𝗮𝘁𝘁𝗿𝗮𝗰𝘁𝘀 𝘁𝗼𝗽 𝘁𝗮𝗹𝗲𝗻𝘁, 𝗮𝗻𝗱 𝗱𝗼𝗺𝗶𝗻𝗮𝘁𝗲𝘀 𝘆𝗼𝘂𝗿 𝗺𝗮𝗿𝗸𝗲𝘁. 𝗟𝗲𝘁’𝘀 𝗰𝗵𝗮𝘁 𝘁𝗼𝗱𝗮𝘆. #Firsttimeceo #CEOCoaching #BusinessScaling #TechCEOs #StartupGrowth #HighPerformingTeams #LeadershipCoaching #Startups

The hardest truth I've learned about scaling startups? Technical skills build products. Leadership skills build companies. Most first-time founders master the first, fail at the second. I see it every week: - They obsess over product specs - They chase market validation - They optimize for metrics But their companies still break. Why? Because they missed these 3 fundamental rules of leadership... 1/ Mission above ego 🔹Your best talent doesn't leave for better offers ↳ They leave when you prioritize being right over doing right ↳ They leave when you take credit for wins but distribute blame ↳ They leave when ego drives decisions, not data 2/ People before metrics 🔹Your team doesn't care about your TAM or growth rates ↳ They care if you remember their partner's name ↳ They notice when you ask about their challenges ↳ They stay when they feel seen, not just measured 3/ Self-awareness drives everything 🔹Leadership isn't about being the smartest in the room ↳ It's about building a room where smart people want to stay ↳ It's about admitting what you don't know ↳ It's about growing yourself faster than your company Here's the truth about scaling: Your company will never outgrow your leadership. Start working on it before it becomes your bottleneck. Which of these rules challenged you the most? 👇 __ ♻️ Share this with someone who needs to hear it. 📌 Follow me, Mariya, for more actionable insights from the startup trenches.

Here's the truth about scaling your business: Complexity grows faster than revenue. But it doesn't have to. The best leaders know: You don't need to sacrifice clarity, culture, or your sanity to scale. Here's what works at each stage: $1M - $5M: The Focus Phase → Define clear accountability → Get the right people in right seats → Install simple execution rhythms Real example: A services company doubled revenue in 18 months by freeing their founder from operations. $5M - $25M: The Alignment Phase → Build shared vision → Drive 90-day priorities religiously → Systemize core processes Case study: Tech company hit $15M by simplifying operations, cutting rework 40% with same headcount. $25M+: The Multiplication Phase → Develop leaders who develop leaders → Guard culture like your life depends on it → Let data drive decisions Proof point: $40M manufacturer unlocked growth by promoting 3 internal leaders to run divisions, freeing CEO for strategy. The hidden key to sustainable scaling? Protecting YOUR energy. Top performers: • Delegate everything except genius work • Schedule think time religiously • Keep metrics simple and visible Remember: Your company can't scale faster than you can grow. 🔑 Want the framework I use for clarity and scaling? Get my EOS Clarity Break Tool at www.markodonnell.me

Busyness In the realm of entrepreneurship, there exists a paradox that often becomes the silent saboteur of growth – the allure of perpetual busyness. Entrepreneurs, driven by an insatiable passion for their ventures, often find comfort in the constant whirlwind of tasks, forever entangled in the web of hands-on involvement. However, it is within this vortex that a subtle resistance to scaling resides. The love for busyness can become an unwitting obstacle to progress. Scaling a business requires a shift in mindset – from being the sole problem-solver to empowering a capable team to tackle challenges autonomously. It demands a departure from the habitual fixer role, urging entrepreneurs to resist the seductive allure of repeatedly addressing the same issues. True scalability lies in the art of not fixing the same problem twice. It’s about trusting the processes, cultivating a team that excels in addressing challenges, and empowering them to iterate and refine solutions. The entrepreneur’s role evolves from firefighting to strategic navigation, from being engrossed in the day-to-day minutiae to charting the course for sustainable growth. The repetitive process, once trusted to a capable team, becomes the heartbeat of scalability. It frees the entrepreneur from the shackles of perpetual busyness, allowing for a higher vantage point to envision, plan, and execute strategies that propel the business forward. It’s the recognition that true leadership involves orchestrating success, not just participating in the symphony of tasks.

The biggest barrier to scaling isn’t money or strategy – it’s refusing to let go. Think about it: • You work harder and harder, but the progress never seems fast enough. • You delegate tasks, but somehow, you’re still the one fixing every “mistake.” • You want to grow, but the idea of stepping back feels like giving up control. I felt the same way. When I found myself with a $400 million budget to grow a real estate business, I thought I had to oversee every detail to make sure things went right. The reality? My need to control everything was holding my company’s growth back. The turning point came when I delegated responsibility to my team and gave them space, resources, and trust. And to my amazement, they didn’t just match my expectations, they surpassed them in ways I never imagined. Scaling isn’t about being indispensable, it’s about empowering others to take the lead. The more I delegated and the less I interfered, the faster we grew. It’s tough giving up the reins; but it’s really the only way to scale a successful real estate business. Have you ever struggled with letting go? What did it teach you about leadership? What’s your story?

Too many managers hold back their top talent out of fear of being replaced, outshined, or becoming irrelevant. This is backward thinking. Owners and executives WANT to see you develop people who become even better than you. It's how organizations scale and thrive. Real leadership means making your team so capable that they're prepared to step into your shoes and beyond. When I built and sold my previous company, the key differentiator wasn't our product—it was our people. The leaders we developed became our competitive advantage. Your job security isn't threatened by your team's growth—it's defined by it. The best compliment you can receive isn't "we can't function without you." It's "look at all these leaders you've created." #Leadership #TeamDevelopment #BusinessGrowth