As businesses expand, they often struggle to move beyond founder-led management. Success requires spreading decision-making responsibilities across a skilled leadership team rather than keeping control concentrated at the top. Let’s explore the main pitfalls companies face when trying to develop strong leadership teams that can support long-term growth.
Here are five common mistakes that hold companies back:
1. Staying Too Founder-Focused
Many companies get stuck when founders have trouble sharing control. For healthy growth, founders need to step into a bigger-picture role focused on company direction and culture, while letting other leaders handle day-to-day decisions. This means clearly spelling out who can make which decisions, bringing in experts to fill skill gaps, and setting guidelines for when issues need the founder’s input.
2. Fuzzy Company Values
Leadership teams work best when guided by clear, practical values that everyone understands. Rather than vague principles, companies need specific behaviors – like “respond to all customer issues within 24 hours.” These concrete values should guide hiring choices and be regularly reinforced in meetings and reviews.
3. Lack of Clear Goals and Responsibility
Without clear performance targets and accountability, teams can lose focus during growth periods. Each leader needs specific, measurable goals tied to company objectives. Regular check-ins help track progress and adjust plans. Leaders should be empowered to own their results – both successes and setbacks.
4. Insufficient Leadership Training
Growing companies often overlook the need to develop their leaders’ skills. Smart organizations invest in targeted training programs, connect rising leaders with experienced mentors, and encourage ongoing learning through industry events and workshops.
5. Poor Preparation for Challenges
The best leadership teams know how to handle tough times. They practice planning for different scenarios, view obstacles as chances to improve, and support leader well-being through resources for managing stress and work-life balance.
Why This Matters
Companies that build strong leadership teams see real benefits:
- Faster response to market changes
- Smoother operations with less waste
- Consistent company culture across all teams
- More creative problem-solving and innovation
Building a capable leadership team takes time and effort, but it’s essential for lasting success. Companies that spread out decision-making authority, establish clear values and goals, invest in leader development, and prepare for challenges are better positioned for sustainable growth.
About the Author: Drew Yancey leads Teleios Strategy, a consulting firm helping companies with planning, leadership development, coaching, and succession. With over 15 years of experience building high-performing teams, he co-authored “Leading Performance… Because It Can’t Be Managed” and speaks regularly at industry events. Learn more at www.teleiostrategy.com.
Image by Pappu Bhai from Pixabay