Don't categorize employees as either missionaries or mercenaries. Almost everyone has the capacity for missionary-like passion. The key is to design an organization that empowers people and removes bureaucratic friction, making it normal—not weird—to be "all in" on the mission.
By dramatically increasing direct reports (e.g., from 5 to 90), you make micromanagement and command-and-control leadership impossible. This forces managers to shift their role from directing work to coaching teams and removing bottlenecks, which fosters true employee ownership.
Companies typically promote CEOs from within. An external hire implies a crisis or a failure of succession planning. Therefore, an incoming external CEO has a mandate for significant change. Playing it safe with incremental adjustments squanders the opportunity and fails to address underlying issues.
While peer feedback is more accurate than a manager's, directly tying numerical scores to compensation "weaponizes" the system, leading to score inflation and reciprocity. Use peer reviews for development and as one of many qualitative inputs for a manager's final compensation decision.
Don't be fooled by acceptable results. A well-run hierarchical bureaucracy can deliver 'okay' performance, preventing an obvious crisis. This complacency is dangerous because it masks the immense innovation and speed being crushed by the system, hiding the gap between 'okay' and 'extraordinary.'
Many leaders fight bureaucracy like an external threat. The real cause is the organization's design: too many layers, functional silos, and distant decision-making. To fix bureaucracy, you must fundamentally change the organizational structure, not just treat symptoms.
The common VC advice to hire "professional managers" when scaling often introduces rigid, bureaucratic systems. Instead, seek dynamic leaders who can operate in a fluid, high-growth environment, even if they lack a traditional management resume. Prioritize adaptability over process.
Early leadership mistakes often stem from a perceived need to have all the answers. A more powerful approach is to express confidence in the mission while openly asking your team for feedback on how you can improve as a leader to better serve them and the company.
Annual budgets lock capital into plans that quickly become obsolete. A better model uses 90-day cycles where teams re-evaluate priorities and re-allocate resources. This creates organizational agility and ensures money flows to the most important current initiatives, not outdated ones.