1. Some problems with scaling
(and how to fix them)
A manifesto for better organisations
Andrew Ormerod
November 2023
2. Problems: 1. Produc*vity per head drops off
The ”only focusing on building
and selling product” path
Headcount
Productivity
per
person
~12 ~200
The “also getting good at
being an organisation” path
Spoiler: …but you can
do something about it
3. 2. You begin to lose that “start up” spark
Room to play.
Work is fun.
Politics and bureaucracy.
Rising frustration.
From this…. … to this
4. 3. It’s hard to maintain quality of work
“Too many people!
Customer complaints!
What’s going on?
Quick! Panic!
Micro-manage!”
★★★★★
★★★★★ ★★★★★
founders
first hires
5. 4. Potential for founder burnout increases
Who’s in the team?
Who makes the decisions?
pace slowed poten-al thro0led pressure rises
founders founders
small team large team
6. The solution: a better operating system
C
o
m
b
i
n
e
d
o
u
t
p
u
t
Poorly func4oning OS
Org goals
Overall mood
8. The three components of a great OS
Maintaining the necessary context
Continually investing in relationships
Teaching people to solve customer problems
9. 1. Continually investing in relationships
• Consistently put -me and energy into rela-onships and interac-ons
• Good rela-onships = context for learning
• Good rela-onships = produc-ve conflict = high performance
• Good rela-onships = the glue that brings everyone’s efforts together
• Rela%onships are a vital asset
What
Why
10. 2. Maintaining the necessary context
What
Why
• Show people what is important in their role and in the organisation
• Reality is constantly changing
• Not seeing the wood for the trees is the normal human condition
• Getting perspective on your own is hard
• People (and teams) need help from outside
11. 3. Teaching people to solve customer problems
• Orient everyone to customer problems
• Orient leaders and managers to mentoring
• Being a learning organisation = getting better at what we do
• What we do = solving customer problems
• Solving customer problems = how we generate value
• Better problem solving = more value creation
What
Why
& more people development!
12. Problems with scaling (and how to fix them)
• Problems
• Productivity per head drops off
• You lose the “start up” spark
• Hard to maintain quality of work
• Increased potential for founder burnout
• Solution
• Have a better operating system by…
• Continually investing in relationships
• Maintaining the necessary context
• Teaching people to solve customer problems
work@andrewormerod.com
13. • Human beings want to strive
• Without challenges to face, our self-esteem and happiness declines
• Better operating systems help us use our natural desire to solve problems
• It makes being at work a more human activity
• Better workplaces = greater happiness
PS: Work is a human activity
🧘