Why Complex Growth Requires New Leaders, Not Just More Systems
When Shine Lawyers doubled in size and planned for an initial public offering, founders Stephen Roche and Simon Morrison faced a classic dilemma: some favorite early leaders were outstanding at launching initiatives, but struggled with scale or new processes. Rather than ignore brewing tensions and mismatches, they promoted or recruited new executives ready for the next level of complexity. Some early team members moved to new projects or specialized roles where they could shine again.
It wasn’t easy—letting go of old loyalties and confronting the pain of outgrown roles rarely is. But the effect was dramatic: growth accelerated, and confusion cleared. The company didn’t lose its heart; it simply adapted its leadership DNA to match new demands.
Leadership research confirms: organizations that address leadership transitions proactively, rather than by crisis or attrition, outperform those that wait—and leaders who outgrow their roles can become powerful change agents in new contexts.
Review your team objectively, not just based on loyalty or long service, to see who’s thriving and who might be a hidden bottleneck. Have honest conversations, provide growth pathways or soft landings, and don’t hesitate to expand your leadership circle. New talent and fresh perspectives keep organizations fit as they evolve—so be brave about transitions.
What You'll Achieve
You’ll reduce growing pains, accelerate scaling, and foster a resilient, adaptable culture. Internally, trust and energy rise; externally, your capacity to respond to new opportunities multiplies.
Develop Leadership at Each Stage and Let Go When Necessary
Assess whether your current leaders fit your organization's next stage.
As your company or team grows, recognize that the same leadership strengths that got you here might become bottlenecks. Do reviews to check for fit, growth, and enthusiasm.
Empower and develop new leaders early.
Don’t wait until you're overwhelmed. Give rising leaders ownership of real functions or projects, backed by training and mentorship.
Don't be afraid to make tough people decisions.
If a leader is overextended, mismatched, or damaging culture, help them find a better fit, even if that means moving to a new team or launching a new division.
Reflection Questions
- Is anyone on your team struggling to keep up with new challenges?
- Are you or others holding onto roles that no longer fit, out of habit or sentimentality?
- Who has shown readiness for more responsibility?
Personalization Tips
- A small club president steps aside so a newer, more tech-savvy member can coordinate online events.
- A growing family business supports a longtime manager's transition to a new department when their skills no longer fit expansion.
- A coach grooms assistant coaches by assigning them age group teams and supporting their growth with feedback.
Scaling Up: How a Few Companies Make It...and Why the Rest Don't (Rockefeller Habits 2.0 Revised Edition)
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