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The Company You Built Cannot Run the Company You’re Becoming

The informal habits and personal founder involvement that drove early success eventually become the very constraints holding you back. Learn how to evolve your operating model before complexity forces change.

AuthorLionel Eersteling
Reading Time5 min read

You built something that works.

Clients buy.

What Worked Before Was Not Wrong

Founders often wait too long to change because the current model has evidence behind it.

It worked.

The founder knew every client.

Important decisions happened quickly.

The best people could walk into the founder’s office and solve something in five minutes.

Everybody knew what was happening.

There were few layers.

Speed came naturally.

Then the company grew.

Twenty employees became fifty.

One market became three.

Five major clients became twenty.

Projects became larger.

More managers arrived.

More money was at stake.

And the informal way of running the company started carrying a level of complexity it was never designed for.

That does not mean the old way was bad.

It means the company has outgrown it.

Growth Changes the Game

I recognise this from professional football.

A team can dominate at one level with a certain style, squad and way of working.

Then it moves into stronger competition.

Suddenly there is less space.

Mistakes are punished faster.

Opponents are better prepared.

The physical standard rises.

The tactical standard rises.

The quality of the bench matters.

Preparation becomes more sophisticated.

You cannot simply say:

“But this is how we became champions.”

Correct.

That is what got you here.

Now you are playing a different game.

Business works the same way.

The processes that worked at €5 million may become chaotic at €20 million.

The management team that helped you build €10 million may need to develop significantly to lead €30 million.

The founder who could personally approve every important decision eventually becomes the reason decisions are waiting.

Every new level exposes something the previous level allowed you to get away with.

Complexity Arrives Quietly

The dangerous thing about complexity is that it rarely arrives as one major problem.

It accumulates.

Another approval.

Another manager.

Another software system.

Another report.

Another meeting.

Another exception for an important client.

Another process created because something went wrong once.

Every addition has a reason.

Three years later, nobody can explain why the company needs half of it.

People become busy navigating the organisation instead of serving the customer or improving the business.

That is when growth starts creating weight.

And weight eventually slows performance.

Your Organisation Should Not Depend on Memory

In smaller companies, knowledge lives inside people.

Ask Peter.

Sarah knows how that works.

The founder has the relationship.

Finance knows the agreement.

Operations remembers what happened last time.

That can work surprisingly well.

Until one of those people leaves.

Or the company doubles.

Or somebody opens another office.

Then institutional memory becomes institutional risk.

A company preparing for its next level needs to turn important knowledge into organisational capability.

Clear responsibilities.

Clear decision rights.

Repeatable processes where repetition matters.

Reliable information.

Managers who understand the business beyond their own department.

Systems that support execution rather than create administration.

Not bureaucracy.

Infrastructure.

There is a difference.

The Founder Has to Change Too

This is usually the most difficult part.

The company can only change so far while the founder continues operating exactly as before.

At one stage, being involved in everything is an advantage.

You create speed.

You protect quality.

You transfer your standards directly.

At another stage, the same behaviour can restrict the organisation.

The founder now has to decide where his attention creates the highest value.

Not:

“What can I do?”

A successful founder can usually do a lot.

The better question is:

“What should only I be doing now?”

Strategy?

Capital?

Key relationships?

Senior leadership?

Major commercial decisions?

Future opportunities?

If the founder spends most of the week solving issues that someone two levels below could solve, the company is paying an enormous opportunity cost.

Not because his time is expensive.

Because his attention is being used at the wrong level.

Do Not Build for the Company You Have

This is where I would challenge many growing businesses.

They organise themselves around today’s problems.

Today’s workload.

Today’s clients.

Today’s headcount.

Today’s revenue.

But if you already know where you want the company to go, today’s organisation cannot be your only reference point.

If you intend to double revenue, enter new markets or become the leading company in your niche, ask:

What will that company require from us that the current company does not?

Which capabilities?

Which leaders?

Which technology?

Which processes?

Which standards?

What needs to exist before the growth arrives?

You do not prepare for the Champions League after the first match starts.

You prepare because you know where you intend to compete.

Reinvent Before You Are Forced To

Companies usually change for one of two reasons.

Ambition forces them to.

Or pain eventually does.

I prefer the first.

You do not need to wait until margins collapse, good people leave or execution starts breaking down before challenging how the company operates.

Success gives you the opportunity to change from a position of strength.

Use it.

Keep what still works.

Strengthen what needs to become better.

Remove what no longer earns its place.

Build what the next level requires.

Because the company you built deserves respect.

It got you here.

But loyalty to the past should never become a limitation on the future.

Never prepare for where you are. Prepare for where you intend to compete.

About the author

Lionel Eersteling

Strategic Transformation Partner for founders and founder-led companies

Meet Lionel
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