Photo credit: AudienceView.

It’s a classic tale. Your company’s driven, visionary founder manages to lead your start up to takeoff and hit rapid growth mode. But then something happens, and everything starts to bog down. Those former start up struggles and early wins turn into a whole new set of challenges: running the business at scale.

At about this time in an organization’s lifecycle, conversations in the board room and around the water cooler start to focus on the founder. See if you’ve said or heard any of these before:

• Our founder has great energy and ideas (along with some really dumb ideas) but we still can’t seem to get our act together.
• It’s no secret our founder isn’t an Operations person.
• We need to either replace our founder or support her with someone experienced who can run day-to-day operations and keep the trains on time.
• What we need is a President/COO. Then the founder/CEO can be Mr. Outside and the President/COO can be Mr. Inside.

Does any of that sound familiar? I bet it does. On the surface, having a President/COO can make a lot of sense. Every organization needs stability, structure, and experience if it is going to scale up. The approach is certainly popular. “President and COO” titles are so common—throw a stapler in the air at your local office park and you’re bound to hit one on the head.

But hiring a President/COO to solve the “founder” problem typically brings just a new set of problems, setbacks, and even disasters. In many cases I’ve seen, the new President/COO was a sure bet on paper but failed to replicate past successes in a new environment.

In another common scenario, you’ll find that soon after joining, the new President/COO will get into conflict with the founder/CEO about who really runs the business. When this happens, the culture quickly erodes into “old guard” vs. “new guard” and execution speed bogs down across the board from all the in-fighting and politics.

There’s also a little appreciated but equally severe problem that happens when the founder leaves the business too soon, now that “the professionals are in charge” or because “it’s just not that much fun around here anymore,” and the company fails to capitalize on its true potential over time.

While hiring and integrating capable senior leaders into the organization is needed and necessary to scale your business (I’ll show you how to do this here), the popular approach of having a President/COO to oversee business execution usually turns out to be a fix that is much worse than the original problem.

I’ve coached many founder-led, high-growth companies to increasing revenues and profits without a traditional President/COO and without mistakenly consolidating business functions together. I can say with confidence that there is a better way to build great leadership to […]

Photo by Miguel Á. Padriñán at Pexels.

Does your business need an anti-chaos officer? And what in the heck is an anti-chaos officer anyway? I’m referring to a senior leadership role that is dedicated to reducing the internal friction, noise, and chaos that naturally emerges across and between functions and whose mission is to enable the entire business to execute faster and smarter as a whole.

This role goes by many different names and interpretations and is usually splintered across multiple organizational functions. As a consequence, even though it can deliver tremendous value and leverage, it is still widely misunderstood. Additionally, the need for it is unrecognized in most businesses today. I am dedicating this article to clear up these misconceptions and to help you design and implement this very impactful position in your business. You’ll be very glad that you did. Let’s get to it.

What is this Anti-Chaos Officer Role Exactly?

Half the battle of understanding this role is defining it. Seriously. It is usually fragmented across the organization and comes in many different flavors and job titles. In my organizational structure work, I usually call this the Business Alignment Office. But this term hasn’t really helped me to make this position easier to communicate and teach. I recently heard a recruiter tell one of my clients, “Oh, it’s like an Anti-Chaos Officer!” and I laughed at the clever angle, which is what inspired me to write this article. Sometimes this role gets conflated with a Program Management Office or even a Project Management Office but it is more than these. Obviously, a role like a Chief Operating Officer or an equivalent has elements of bringing order, stability and throughput to the organization, but that isn’t the role I’m describing either.

So what is it? This is an organizational linchpin role that drives the coordination, management, and execution of all major cross-functional processes, projects, and initiatives. Its purpose is to identify, plan, coordinate, and communicate those high-impact, cross-functional problems and initiatives that improve metrics and decision-making, accelerate throughput, improve quality, and enable scalability of the entire organization. Its #1 mandate is to seek out cross-functional entropy and — by working together with other impacted functions — bring forth shared insights, speed, quality, and performance. Then find the next cross-functional opportunity and repeat.

When I was the CEO of Commission Junction, I blindly stumbled into this role and quickly realized the positive impact it can have. At the time, I was fortunate to have on staff a very smart and talented individual named Wade Crang. Wade had an MBA and an advanced math degree and had worked for several years has a consultant at a Big 5 consulting firm. I remember hiring him even though we didn’t really have a well-defined role for him to perform at the […]

Lex conducting an Organizational Structure & Design Workshop in Capetown, South Africa. Photo Credit: Gregor Röhrig

Changing your organizational structure sucks.

There. I said it.

Helping companies change their structure is the work I do every day. If I didn’t know what I know now, I’d wonder, “Why would anyone want to do it?”

Changing your company’s structure can be a massive initiative. If you don’t do it correctly, it’s a recipe for disruption and disaster. People’s careers are on the line. Job titles can change. Existing reporting lines can get disrupted. One leader’s turf can expand and another’s shrink. The political fallout can be a huge cost in itself.

Even worse, if the new structure is done wrong, you’ll have the classic case of the cure killing the patient. You can set your company back even further in its development.

The corollary is also true. Structure done right can be the breakthrough you’ve been looking for. It’s like activating the booster stage of a rocket. It’s the catalyst to the next level of performance. I know because I’ve seen it happen over and over. It’s the reason why I do the work I do. It’s also one of the most misunderstood aspects of organizational design.

Let me explain all this by starting with a recent example at Microsoft.

In the early 2000s, a few years after taking over as CEO from co-founder Bill Gates, Steve Ballmer decided to double down on the existing divisional structure at Microsoft. A divisional structure typically has strong divisional heads but poor or limited cross-functional coordination across the divisions. Ballmer’s approach led to this infamous visual about working at Microsoft in the 2000s (I’m not sure who the source is but I still find it funny):

If your business has the wrong structure for its business model, strategy, or lifecycle stage, it’s not going to scale up. It’s going to trip up.

What was the problem with this approach? It was the wrong structure for a changed reality. The existing divisional structure worked well for Microsoft in the 80s and 90s during the desktop/data-center era. But the structure itself also made Microsoft incapable of adjusting to a radically changing, Internet-first era. Ballmer tried to rectify this problem by changing strategies several times but he never changed structures until 2013 (and then only haphazardly or half-heartedly). It was too little, too late. Under his tenure, Microsoft lost half of its enterprise value. Not a good score.

Within a short time after […]

If I were to ask you — “How are you instilling a culture of speed, accountability, and teamwork as your organization scales up?” — how would you respond?

This is a critical question. On the one hand, you want to keep what works well from your early start-up culture — fast decision making, risk-taking, camaraderie, and innovation. On the other, you have to manage the growing complexity — more people, new product lines, multiple business units, increasing regulatory requirements, and more. How can you achieve both?

Most entrepreneurs and CEOs struggle with this. They know that as their business scales up, they must evolve how the business operates, makes decisions, and cascades its culture. They also rightly fear that more policies, centralization, and procedures could cause the company to bog down and lose its entrepreneurial edge. The status quo is no longer tenable. You need a cure but the cure shouldn’t also kill the patient. What to do?

If we were to ask Jeff Bezos the same question — How do you instill a culture of speed, accountability, and teamwork at Amazon?” — he’d say something like this:

“Amazon’s management philosophy is to be customer obsessed, treat every day as if it were Day 1, manage the two major types of decisions (Type 1 and Type 2) differently, reinforce that it’s better to disagree and commit than get stuck in information paralysis, and elevate true misalignment issues quickly.”

What Bezos has figured out, and what he’s consistently trying to communicate and reinforce, is that to be effective at scale means to build on principles, not on policies. Policies, procedures, and rules may be necessary to some extent (especially if you are in a highly regulated industry) but they do not create high performance. As you know, they often prevent high performance.

Principles, on the other hand, are designed to be few in number but strong in impact. Meaning, a principle points you in the right direction but calls on the common sense and creativity of the individuals executing it. Also, if a principle is violated, this must carry big consequences. It has to, or it has no weight; it’s just a platitude.

If you’re like me and you tend to resonate with the principles-over-policies approach to scaling a business, but you’ve also been wondering how to bring this home for your leadership team and staff, I want to share with you a one-page document I use with success in my coaching practice. This one-pager […]