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Growth Gauntlet: 2022 Survey Results

SSM and PeopleCap are excited to share the results to our first Organizational Growth Survey! Culture and people are essential elements to manage as our companies scale. We teamed up with the our Operating Partner, Meg Crosby, at PeopleCap Advisors to better understand the stages of development high growth companies move through to scale effectively. This survey was sent to a select group of high growth, early-stage, SaaS and tech-enabled businesses in June 2022 and reveals valuable insights.

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0% found this document useful (0 votes)
15K views26 pages

Growth Gauntlet: 2022 Survey Results

SSM and PeopleCap are excited to share the results to our first Organizational Growth Survey! Culture and people are essential elements to manage as our companies scale. We teamed up with the our Operating Partner, Meg Crosby, at PeopleCap Advisors to better understand the stages of development high growth companies move through to scale effectively. This survey was sent to a select group of high growth, early-stage, SaaS and tech-enabled businesses in June 2022 and reveals valuable insights.

Uploaded by

SSM Partners
Copyright
© © All Rights Reserved
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Growth Gauntlet:

2022 Survey

AUGUST 2022
Introduction
PeopleCap and SSM are excited to share the results of our first REVENUE RANGE CAPITAL RAISED
Organizational Growth Survey!
None
12% Less than $3 million 11% 8%
We launched the survey to the CEOs of a select group of high growth, Less than $5 million
39%
$3 - $15 million
early-stage, SaaS and tech-enabled businesses in June 2022 to better 23% 29%
$5-10 million
understand the stages of organizational development these companies 49% $15 - $50 million
$10-25 million
move through as they scale and what factors contribute to their success. 29%

$25 million +
We received 63 responses to the survey. To the right, you can see a
snapshot of their demographics. EMPLOYEES INSTITUTIONAL CAPITAL RAISED

Please note this survey is only one snapshot in time – and these are
1-25
interesting times! We plan to issue this survey again in 2023 to see what 37%
31%
38% Yes
26-50
trends have changed and what remains constant. 62% No
51-200
It is a pleasure to share our findings with you in this report. The report 32%

contains summary data across all of those who responded. We hope the
data and insights herein will be helpful to you and your team on your GROWTH RATE FOUNDER-LED
own growth journey. If you have any questions or would like to learn 1%

more about how we help companies scale, please reach out to any of the 16% 0-10%
29%
authors directly or to us at [email protected]. 10-30% Yes
59% 24% 30-50% No
71%
50%+

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Introduction to the Growth Gauntlet
Growth provides both opportunities and challenges. Based on our work with organizations over the years, we identified the six definitive people-related elements that have the
greatest impact on a company’s ability to achieve and sustain high performance. We call these elements The Six Imperatives:

Sharpen Calibrate Strengthen Elevate Align Amplify


Focus Culture Leadership Talent Structure Communication

Like humans, organizations evolve and move through stages of growth and development as they mature. At each stage, the organization develops new infrastructure, achieves
new milestones, builds new competencies, and becomes more complex. Our Growth Gauntlet charts the 6 Imperatives across the following 4 Stages of Growth:

Emerge Operationalize Grow Explore & Expand


Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Charting an organization’s growth in each imperative across these 4 stages allows leaders to see where they are on the growth journey and, critically, what comes next, and
what to do to reach the next level!

The following page illustrates the attributes of an organization in each of the Six Imperatives as they mature across each of the 4 Stages of Growth. As you read through this
report, we will highlight the extent to which organizations mature or regress across any of these Six Imperatives as they encounter milestones on their growth journey (scaling
hiring and revenue, raising capital, managing a remote workforce, etc.).

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The Growth Gauntlet
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth.
Leadership

Organization is building core competencies in recruiting,


Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

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In-Office v. Remote Workforce Snapshot
Companies report remote work is the norm
Days Per Week Required In-Office

Of those we surveyed, a full two-thirds of organizations (68%) reported that


13%
they did not require that employees work in the office any days each week. 0

We asked respondents to tell us what percentage of their employees were 19%

100% remote or worked from home most of the time. Two-thirds of 1-2
companies reported more than half of their workforce is completely remote 68%

(67%) – with 33% of all organizations reporting that 100% of their


3+
employees work remotely.

We found that slicing the data by region, revenue, and headcount did not
seem to impact these remote work trends. Share of Workforce that is Fully Remote

<50%
32% 33%

50%+

35% 100%

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Pain Points: Snapshot in Time
Hiring is the top concern today
WHAT IS YOUR GREATEST PAIN POINT?
“Restarting an effective and productive office culture post-
pandemic that also values flexibility.”
We asked each CEO an open-ended question to evaluate their top pain “Building culture when many people are
points with regard to people and culture. Understanding how a CEO’s “Hiring and retaining software engineers!” remote”
role evolves as a company grows, we were curious whether there were “Making the most of limited resources - balancing core business
different pain points at different stages of a CEO’s journey through the with development activities.”
Growth Gauntlet.
MOST COMMON PAIN POINTS
Interestingly, while hiring and recruiting remained the most prevalent pain
points across all growth stages, there were differences in the challenges
reported as companies advanced through the 4 Stages of Growth.
Companies in the Emerge stage, where they are still generally founder- 13% PEOPLE/HIRING
led, identified 1) struggling to scale with limited resources and 2)
maintaining culture with remote teams as their most significant pain points. 17% 43% CULTURE
As CEOs move into the the Operationalize and Grow stages, the
reported pain points changed to include struggles with team focus and FOCUS/ALIGNMENT
accountability. When CEOs shifted to focusing most of their time on
28% CAPITAL
external growth in the Explore & Expand stage, they reported challenges
with leadership alignment and the development of a learning culture.

Emerge Operationalize Grow Explore & Expand


Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

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Companies that have raised $10+ million

Impact of Raising Capital


score +33% higher in the Calibrate Culture
imperative than bootstrapped companies

Raising growth capital indicates greater organizational maturity IMPACT OF RAISING $10+ MILLION vs.
BOOTSTRAPPING

The data indicated a correlation between capital raised and organizational maturity as defined by the progression across the Growth Gauntlet framework
for each of the Six Imperatives. Survey respondents that have raised institutional capital reported that they are further along in their organizational Sharpen
Focus
+10%
development across all Six Growth Imperatives than those who had not raised institutional capital.

+33%
Companies that raised $10+ million reported greater maturity over bootstrapped businesses across all imperatives, especially in Calibrate Culture and
Elevate Talent. Companies that raised $10+ million reported having an institutionalized culture – one that is intentionally reinforced through processes and
Calibrate
programs – significantly more often than those who had raised less capital. Similarly, they reported a more systematized approach to talent development, Culture
with the organization building core competencies in recruiting, hiring and developing employees.

Within the parameters of this survey, we are unable to say whether raising capital leads to the institution of these processes and competencies, or whether
the maturation in these imperatives attracts capital or is an indicator of readiness to raise capital. Nonetheless, the correlation between capital raised and Strengthen
Leadership
+12%
organizational maturity became especially evident as revenue increases. Companies with revenue over $3+ million that raised $10+ million of capital
reported more organizational maturity than the bootstrapped companies in the same revenue range by at least 20 points in each imperative.
CAPITAL RAISED Institutional Capital
Elevate
Talent
+24%
11% 8% None

23% 29%
Less than $5 million

$5-10 million
38%
Yes
Align
Structure
+11%
62%
$10-25 million

+19%
No
29%
$25 million + Amplify
Communication

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Companies with Moderate (30-50%) growth

Moderate Growth is Sustainable Growth


score +19% higher on Align Structure than
High (50%+) growth companies

IMPACT OF MODERATE (30-


If you go too slow, you’ll rust out; if you go too fast, you’ll burnout IMPACT OF MODERATE (30-
50%) vs. LOW (<30%) 50%) vs. HIGH (>50%)
GROWTH GROWTH

Companies with a moderate rate of revenue growth (30-50%) reported the greatest
organizational maturity across the Six Imperatives, while those companies with less than
Sharpen
Focus
+5% +11%
30% or greater than 50% growth rate reported lower maturity across the Six Imperatives.

Organizational maturity dipped for those companies growing revenue at the highest rates
(50%+). This drop in organizational maturity was evident regardless of the revenue range.
Calibrate
Culture
+6% +14%
We believe that the highest growth companies (50%+) tend to focus – by necessity – almost
exclusively on revenue and servicing clients at the expense of developing organizational
infrastructure. The pace of high growth often causes burnout and turnover. When this
Strengthen
Leadership
+15% +17%
happens, we find organizations often return to an earlier stage in the Gauntlet and invest in
the appropriate infrastructure (ex., recruiting, training, and hiring leaders) in order to move
forward in a more sustainable way. Elevate
Talent
-3% +19%
Align
Structure
+2% +19%
Amplify
Communication
+14% +17%
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Companies with 51+ employees score +45%

Maturing with Scale


higher in the Strengthen Leadership
imperative than companies with <26
employees

More People = More Complexity 50+ EMPLOYEES vs. <26 $15M+ REVENUE vs. <$3M
EMPLOYEES REVENUE

As companies grow both in terms of revenue and people, they reported more mature
processes and infrastructure across all Six Growth Imperatives. Survey respondents
Sharpen
Focus
+25% +27%
reported a higher correlation of maturity to growth in FTEs versus growth in revenue.

Companies with 50+ employees reported greater maturity across all Six Imperatives at a
rate of at least 10 points over companies with less than 26 employees. The most significant
Calibrate
Culture
+19% -1%
jumps were found in the Strengthen Leadership and Elevate Talent imperatives where
companies reported that strong distributed leadership allowed the CEO to focus mostly on
strategic opportunities, as opposed to heavy operational responsibilities. Further, talent Strengthen
Leadership
+45% +41%
management systems and practices supported recruiting, hiring, training, and developing
talent.

This finding supports our experience. Adding more team members creates additional Elevate
Talent
+32% +12%
complexity, which, in turn, necessitates greater investment and development in all the
Imperatives.
Align
Structure
+16% +5%
Amplify
Communication
+11% +1%
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Leadership Matures Most with Scale
The role of the CEO moves beyond day-to-day operations with increased headcount and revenue
Overall, respondents reported the Strengthen Leadership imperative matures to a greater degree than the other five Imperatives as companies reach scale. Companies with less than $3 million of
revenue and less than 26 employees report Strengthen Leadership is the least mature of their Growth Imperatives, while companies north of $15+ million revenue and 50+ employees report
Strengthen Leadership is the most mature of their Six Imperatives. We believe this indicates how companies that achieve scale invest in leadership infrastructure, even ahead of other Imperatives.

The results highlight how the role of the CEO, especially, changes in correlation to increased revenue. As revenue increases, CEOs are reportedly less involved in the daily operations of the
organization, leaving those responsibilities to a leadership team that owns day-to-day operations. The survey showed significant shifts in the role of CEO at each of the $3, $15, and $50 million
revenue thresholds. At each revenue inflection point, the role of the CEO moved further beyond day-to-day operations to strategic and external responsibilities.

In our experience, a well-developed leadership infrastructure plays a pivotal role in building the organizational scaffolding. In addition, we believe the trajectory of a CEO is to elevate from a focus
on day-to-day operations to a strategic and external focus. Our experience has taught us a distributed leadership team needs to be in place to achieve this shift in a CEO’s role.

Emerge Operationalize Grow Explore & Expand


Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team CEO is mostly focused on strategic
Strengthen Organization is Founder-led. Leaders wear many responsibilities. Leadership Team is loose is in place. Each LT member owns a key strategy or opportunities. Leadership Team has full
Leadership hats. Roles are not explicitly defined. confederation of functional leaders. Key function critical to success. CEO’s time increasingly ownership of day-to-day operations and wears
experienced hires are added to round out team. externally focused on growth. both functional and strategic hats.

Average
Headcount
Response if 50+ FTEs

Average
Revenue
Response if $15M+ of Revenue

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Companies with a team of 2+ HR employees

HR’s Impact
score +19% higher in the Strengthen
Leadership imperative than companies with
no or 1 HR employee

Companies reported greater maturity with 2+ HR FTEs IMPACT OF 2+ HR Team Members vs. 0-1

Companies with 30%+ growth or 51+ employees were more likely to have 2 or more dedicated HR employees.
Sharpen
Focus
+15%
Companies with a team of 2+ HR employees reported higher scores across all Six Growth Imperatives than organizations with zero or
one HR employee.

In our experience, the first dedicated HR employee in an organization is usually transactional, hired under the CFO to manage payroll, Calibrate
Culture
+13%
benefits, and other HR administrative tasks. The next few HR hires tend to be more strategic in nature and focused on talent – recruiting,
training, performance management, and culture development. Those organizations with more than one HR person are generally
dedicating some resources to elevating talent and likely investing more in their people and the infrastructure to support them. The
increased investment may help drive the organization’s increased maturity across the Six Growth Imperatives. Strengthen
Leadership
+19%
Number of HR employees by Growth Rate Number of HR employees by FTE Count Elevate
Talent
+15%
30%+ 51+

10-30% <50
Align
Structure
+2%
+2%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Amplify
Communication
0 HR employees 1 HR employee 2+ HR employees

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Leveraging the Growth Gauntlet
We developed The Growth Gauntlet framework to provide a shorthand to talk about the stages of
organizational growth and maturity. Here are 3 ways to leverage the framework on your growth journey:

Leadership Team Alignment


We encourage you to share The Gauntlet with your leadership team and then facilitate a discussion to align around where you believe your organization is on its growth
journey.

Strategic Planning
The Gauntlet provides important context for strategic planning. Once you have self-diagnosed where your organization is, you can then ask: “What will it take for us to move
to the next level for each of the Six Imperatives?”

Deeper Dive
It’s important to note that each box on the Gauntlet
represents a deeper body of knowledge and strategy. DISCOVERY CO-CREATION GUIDE
While a self assessment can be instructive, to realize the full Data-driven discovery We partner with leaders to We coach our clients
during implementation
value of the framework and reach your growth goals, a designed to gain an determine the most effective
with strategic advice,
objective, vetted, in-depth path forward based on their
deeper dive is necessary. We take your team through a view of the organization challenges and capacity
GROWTH
metric-driven

five-step process to co-create a comprehensive growth- INSIGHTS accountability, and


ROADMAP adjustments when needed
focused people strategy to chart sustainable growth. We sort through the noise and Using the Six Imperatives
use our experience to identify framework, we develop a
the key insights that will move customized roadmap for
the company forward successful growth

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About The Authors

Meg Crosby Howard Cleveland Casey West Jordan Purdham


PEOPLECAP - PRINCIPAL & CO-FOUNDER PEOPLECAP - PRINCIPAL & CO-FOUNDER SSM PARTNERS – MANAGING PARTNER SSM PARTNERS – ASSOCIATE

Meg co-founded PeopleCap Advisors in 2012 to Howard is a trusted advisor and leadership coach Casey is a Managing Partner at SSM Partners and Jordan is an Associate at SSM Partners and assists
help organizations unleash their full potential to CEOs, Executive Teams, and Senior Leaders focuses his time on leading SSM’s investments in in evaluating and sourcing investment opportunities
through their people. She is a strategic advisor to seeking to be more effective. In his roles as a Labor Healthcare software & technology companies. He and contributes to investment decisions, with a
CEOs, Boards and Investors, a recognized thought & Employment attorney, growth advisor, and has sat on the board of many of SSM’s current and particular emphasis on original screening of
leader in People Strategy, and enjoys asking tough leadership coach, he has partnered with leaders former portfolio companies including EnableComp, opportunities and due diligence. He also provides
questions. She is also an Operating Partner with for over 25 years to help them lead more Apixio, Icario, ProviderTrust, RemitData, Equiscript, support to SSM's active investments. Jordan actively
SSM Partners, a growth equity investment firm effectively. Using research-based assessments and and One Mnet Health. Prior to joining SSM, Casey works with various SSM portfolio companies
focused on software, services and healthcare. Prior structured, performance-focused coaching, he worked at Petra Capital Partners and Donaldson, including ProviderTrust, One Mnet Health, and
to PeopleCap, Meg’s 20-year career in human serves as a coach, strategic partner, and strategic Lufkin & Jenrette Securities Corporation. KEEPS. Prior to joining SSM, he spent several years
resources established her as an expert in advisor – providing space and a framework for developing digital businesses at Red Ventures.
organizational culture, people strategy and leaders to process and overcome challenges,
organizational growth. She has worked for develop the skills needed to effectively lead during
companies of all shapes and sizes including for a growth, and a thought partner – all focused on
small tech startup in Los Angeles as a sole HR long term leadership growth and effectiveness.
practitioner and at Google leading acquisition
integration.

[email protected] [email protected] [email protected] [email protected]

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12
PeopleCap Advisors
We Bring People Expertise To High Growth Companies & Investors

Team & Culture Due Diligence Growth-Focused People Strategy Coaching/Advisory Partnership

PE firms invest in teams. We help PE firms dig Your People strategy is as important as your We grow leaders. Whether through individual
deeper into portfolio company teams to financial strategy. High growth is a gauntlet 1:1 coaching or facilitated team-building
understand their structure, culture, strengths and with constant challenges. We work with leaders retreats, our coaching and advisory
gaps—quickly providing PE firms with data and to identify key strategies, milestones, and engagements allow us to build the leaders to
insights to support decision making through the metrics to help their organization grow well. meet the moment and excel at the next level.
investment process.

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SSM Partners
HEALTHCARE B2B
What We Look For
• Great entrepreneurs

• Software and tech-enabled services across B2B & healthcare

• Proven and predictable businesses at an inflection point

• Achieved product-market fit and greater than $5M in run-rate revenue

• Predictable YoY revenue growth of 20%+

• Businesses that have demonstrated capital efficiency

• Desire and drive to accelerate growth

Great Teams: The First Ever Jamaican Bobsled Team


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14
Thank You

Growth Gauntlet: 2022 Survey


APPENDIX
Organizational Growth Gauntlet: <$3M Revenue
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture KEY:

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function Green Shading
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally Indicates Most
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth. Common
Leadership Placement for
Respondents in
Organization is building core competencies in recruiting, this Category
Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

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Organizational Growth Gauntlet: $3 – 15M Revenue
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture KEY:

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function Green Shading
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally Indicates Most
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth. Common
Leadership Placement for
Respondents in
Organization is building core competencies in recruiting, this Category
Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

Copyright © 2022 PeopleCap Advisors, LLC. All rights reserved. This content may not be copied, reproduced, transmitted, distributed, downloaded or transferred in any form or by any means without prior written consent of, and with express attribution to, PeopleCap Advisors, LLC. 18_
Organizational Growth Gauntlet: $15 – 50M Revenue
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture KEY:

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function Green Shading
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally Indicates Most
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth. Common
Leadership Placement for
Respondents in
Organization is building core competencies in recruiting, this Category
Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

Copyright © 2022 PeopleCap Advisors, LLC. All rights reserved. This content may not be copied, reproduced, transmitted, distributed, downloaded or transferred in any form or by any means without prior written consent of, and with express attribution to, PeopleCap Advisors, LLC. 19_
Organizational Growth Gauntlet: 1-25 Employees
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture KEY:

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function Green Shading
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally Indicates Most
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth. Common
Leadership Placement for
Respondents in
Organization is building core competencies in recruiting, this Category
Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

Copyright © 2022 PeopleCap Advisors, LLC. All rights reserved. This content may not be copied, reproduced, transmitted, distributed, downloaded or transferred in any form or by any means without prior written consent of, and with express attribution to, PeopleCap Advisors, LLC. 20_
Organizational Growth Gauntlet: 26 – 50 Employees
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture KEY:

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function Green Shading
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally Indicates Most
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth. Common
Leadership Placement for
Respondents in
Organization is building core competencies in recruiting, this Category
Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

Copyright © 2022 PeopleCap Advisors, LLC. All rights reserved. This content may not be copied, reproduced, transmitted, distributed, downloaded or transferred in any form or by any means without prior written consent of, and with express attribution to, PeopleCap Advisors, LLC. 21_
Organizational Growth Gauntlet: 51-200 Employees
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture KEY:

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function Green Shading
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally Indicates Most
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth. Common
Leadership Placement for
Respondents in
Organization is building core competencies in recruiting, this Category
Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

Copyright © 2022 PeopleCap Advisors, LLC. All rights reserved. This content may not be copied, reproduced, transmitted, distributed, downloaded or transferred in any form or by any means without prior written consent of, and with express attribution to, PeopleCap Advisors, LLC. 22_
Organizational Growth Gauntlet: 10-30% Revenue Growth
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture KEY:

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function Green Shading
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally Indicates Most
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth. Common
Leadership Placement for
Respondents in
Organization is building core competencies in recruiting, this Category
Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

Copyright © 2022 PeopleCap Advisors, LLC. All rights reserved. This content may not be copied, reproduced, transmitted, distributed, downloaded or transferred in any form or by any means without prior written consent of, and with express attribution to, PeopleCap Advisors, LLC. 23_
Organizational Growth Gauntlet: 30-50% Revenue Growth
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture KEY:

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function Green Shading
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally Indicates Most
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth. Common
Leadership Placement for
Respondents in
Organization is building core competencies in recruiting, this Category
Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

Copyright © 2022 PeopleCap Advisors, LLC. All rights reserved. This content may not be copied, reproduced, transmitted, distributed, downloaded or transferred in any form or by any means without prior written consent of, and with express attribution to, PeopleCap Advisors, LLC. 24_
Organizational Growth Gauntlet: 50%+ Revenue Growth
STAGES OF GROWTH
Emerge Operationalize Grow Explore & Expand
Informal, Ad Hoc, Undefined, Reactive Defined, Data-informed, Focused, Proactive Accountable, Data-driven, Predictable Strategic, Agile, Innovative, Opportunistic

Product, market or business model is proven. Stated Business is regularly meeting financial targets. With
Detailed Strategic Plan exists with budgets, forecasts, and
Focus is on proving out product, market, or business corporate purpose/vision exists. The focus is mostly on operations running smoothly, the focus shifts from
data-driven metrics. Focus is on growing market share.
model. achieving revenue goals. A goal setting framework is internal operations to exploring external opportunities.
Sharpen Corporate and individual goals in place.
introduced. Dual innovation occurs.
Focus

Culture is reinforced through processes like hiring, talent


Culture is organic, emerging, and is largely a reflection of Culture moves beyond the founder. It is defined in the Culture is a driver and used as a lens through which to
development, performance management, and
the personality and priorities of the founder(s). form of core values and used in some decision-making. evaluate strategic opportunities. Culture is defended.
Calibrate compensation.
Culture KEY:

CEO is player/coach with heavy operational Highly competent, cohesive, aligned Leadership Team is
THE SIX IMPERATIVES

CEO is mostly focused on strategic opportunities.


Organization is Founder-led. Leaders wear many hats. responsibilities. Leadership Team is loose confederation of in place. Each LT member owns a key strategy or function Green Shading
Leadership Team has full ownership of day-to-day
Roles are not explicitly defined. functional leaders. Key experienced hires are added to critical to success. CEO’s time increasingly externally Indicates Most
Strengthen operations and wears both functional and strategic hats.
round out team. focused on growth. Common
Leadership Placement for
Respondents in
Organization is building core competencies in recruiting, this Category
Talent is convenient, largely hired and managed by More experienced and specialized skills are added.
hiring, developing, and liberating talent. Middle Strong leadership and talent pipelines exist. Middle
Founder. Loyalty is valued over accountability. People Performance and accountability are increasingly
managers are consistently trained and accountable for managers are key to driving growth innovation, and
know who poor performers are, but there is no process or important. individual contributors are elevated to
Elevate their team’s performance. HR adds strategic talent engagement. CHRO is elevated to the leadership team.
accountability in place to address them. Managers. HR exists and is mostly transactional
Talent management function.

Organization is structured as one undefined team largely Functional structure is defined. Departments emerge. Structure is aligned with strategy. Repeatable processes in Structure is agile and evolves with strategy. Processes are
all reporting to the Founder. Manual processes emerge. Processes are being formalized, defined, documented. place driven by systems, tools, and automation. mined for efficiencies, continuous improvement.
Align
Structure

Comprehensive and strategic internal communications


Communication is informal, often direct from Founder. Communication becomes more intentional though still Communications protocols, channels, and systems
function exists for larger and more distributed customer
Everyone is in-the-know because of proximity, small team. largely top down. Employee and customer feedback are emerge. Employee & customer feedback is regularly
base and workforce. Multi-directional feedback loops
Amplify Customer communication is direct, tight loop. solicited episodically. solicited and valued.
provides data that drives change.
Communication

Copyright © 2022 PeopleCap Advisors, LLC. All rights reserved. This content may not be copied, reproduced, transmitted, distributed, downloaded or transferred in any form or by any means without prior written consent of, and with express attribution to, PeopleCap Advisors, LLC. 25_

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