Historian Joseph Tainter argues societies collapse when maintaining their complexity consumes all available resources. This applies to organizations, which become fragile by constantly adding complex solutions without a mechanism for simplification. This leaves no buffer to handle the next major, inevitable crisis.
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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.
Drawing from the biological principle that cells stop dividing to protect an organism's integrity, companies should moderate growth. Pushing beyond a sustainable rate (e.g., >20% annually) can introduce "mutations" like cultural drift, jeopardizing long-term survival for short-term scale.
Brené Brown notes a decline in systems thinking among leaders. This skill, which involves understanding interconnected parts and maintaining permeable boundaries for feedback, is essential. Without it, organizations become dangerously self-referencing and fail to adapt, as seen in many failed AI investments.
As a company grows, its old operational systems and processes ('plumbing') become obsolete. True scaling is not about addition; it's about reinvention. This involves systematically removing outdated processes designed for a smaller scale and replacing them entirely.
Citing Salesforce veteran George Hu, Halligan notes that in hypergrowth, nothing scales for long. Any new system, process, or even role has a three-year lifespan before it breaks and needs to be replaced. This mindset normalizes constant change and helps leaders anticipate inevitable breaking points.
The instinctive reaction to overwhelming growth is to accelerate work, which often leads to addressing symptoms instead of root causes. The more effective first step is to pause, step off the 'treadmill,' and gain clarity on the actual challenge before taking any action.
A profitable business is a complex system that works. Changing one variable by pursuing something 'new' is statistically more likely to break the system than improve it. The highest risk-adjusted move is to do 'more' of what already works, even if it requires solving a much harder underlying problem.
Civilizations don't fall directly from war or plague. They fall when these shocks trigger a psychological shift from an open, exploratory mindset to a fearful, protectionist one. This 'Spartan mentality' stifles the innovation required to overcome the original challenges, leading to decline.
In environments with highly interconnected and fragile systems, simple prioritization frameworks like RICE are inadequate. A feature's priority must be assessed by its ripple effect across the entire value chain, where a seemingly minor internal fix can be the highest leverage point for the end user.
Business growth isn't linear. Scaling up introduces novel challenges in complexity, cost, and logistics that were non-existent at a smaller size. For example, doubling manufacturing capacity creates new shipping and specialized hiring problems that leadership must anticipate and solve.
