Hyper-growth and strong sales create a positive, winning culture that solves many problems. However, this success can become a blind spot, causing teams to ignore critical underlying issues that may later prove detrimental, as seen in the Zenefits story.
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For established businesses, the default goal of perpetual growth can be counterproductive. A more sustainable approach is focusing on protecting the team's peace and well-being, questioning the need for "more," and finding comfort in holistic success rather than just metrics.
WCM realized its intensely caring culture risked becoming too soft, potentially enabling underperformance. They consciously implemented a practice of 'truth-telling'—having direct, difficult conversations about performance—as a necessary counterbalance to maintain high standards and ensure accountability.
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Hitting a major revenue goal can feel meaningless if it leads to burnout. This form of "success" simply replaces corporate constraints with entrepreneurial ones, creating a new trap that you've built for yourself.
Exceptional people in flawed systems will produce subpar results. Before focusing on individual performance, leaders must ensure the underlying systems are reliable and resilient. As shown by the Southwest Airlines software meltdown, blaming employees for systemic failures masks the root cause and prevents meaningful improvement.
The biggest scaling mistake is focusing on running up numbers while ignoring the underlying mindset. During its peak growth, Facebook put every new engineer through a six-week bootcamp not for immediate productivity, but to instill the company's culture. This investment in a shared mindset is what enables sustainable scaling, preventing the chaos that comes from rapid headcount growth.
Companies like Instagram that succeed early become risk-averse because they lack experience in navigating failure. In contrast, enduring early struggles builds resilience and a willingness to experiment, which is critical for long-term innovation.
The intense, unreasonable passion that fuels hyper-growth is the same trait that can lead a founder to make reckless, company-threatening decisions. You can't have the creative genius without the potential for destructive behavior. The same person who clears the path can also blow everything up.
Rapid sales growth creates a powerful "winning" culture that boosts morale and attracts talent. However, as seen with Zenefits, this positive momentum can obscure significant underlying operational or ethical issues. This makes hyper-growth a double-edged sword that leaders must manage carefully.