I’ve Watched Companies Scale Successfully and Fail — The Difference Often Comes Down to This

Successfully scaling a business requires a strong foundation. The right processes must be in place because scaling a flawed process will only magnify its deficiencies. You need to have your finances in order to handle the increase in expenses that comes with any scaling effort.

And perhaps most importantly of all, you need to have strong team connections. If there’s one thing I’ve learned over the years, it’s that as valuable as the other elements of scaling are, they will ultimately fall short if you don’t have a strong, closely connected team.

Unlocking the connection between team connections and business growth

It should be no surprise that a team that feels connected and unified will be able to achieve far greater outcomes than teams that are disconnected or even adversarial in nature. Connected teams are built on a foundation of communication and psychological safety that build trust and enable individual team members to work together effectively.

A recent report on the state of workplace culture and connection found that organizations with strong workplace cultures were nearly twice as likely to report significant revenue growth in comparison to culture laggards. Among these culture leaders, team members were nearly sixteen times more likely to regularly receive meaningful recognition from their direct manager, and over nine times as likely to receive such recognition from their peers. Employees at these workplaces were also two times more likely to report feeling strongly connected to their team and direct manager.

Similarly, research from Gallup found that when managers focused on employees’ strengths, employees were twice as likely to be engaged at work. Even more impactful, these employees also enjoyed improved well-being, resulting in higher productivity and fewer health issues.

When employees and managers become more closely connected in the workplace through these and other supportive actions, they begin to form stronger relationships, which are critical for creating a truly cohesive team. In these environments, individual team members learn to leverage each person’s unique strengths as they work together to innovate and solve scaling challenges.

With strong social connections, workplace satisfaction and organizational commitment increase, while turnover decreases. This creates a stronger foundational team that is better prepared to grow in their current roles and advance to new responsibilities as the organization’s structure changes during scaling. In my own business, that strong foundational team has proven critical for keeping everything aligned as we’ve gone through growth and expansion.

The imperative for team connectivity starts at the top. As leaders, it’s our responsibility to create a culture where employees feel safe and supported — where they not only have the necessary resources to do their basic job, but where they also feel like their voices are heard when they share ideas and feedback. Encouraging everyone to share their perspectives enables measured risk-taking that can lead to more effective growth.

Connections can’t take the back burner during scaling

Strong team connections help build the foundation for initial success in a business, but all too often, culture can begin to take a backseat when scaling efforts begin. As new team members are brought on board to manage the growing workload, it can be surprisingly easy for previous efforts at building culture and connection to slip.

This is especially true as companies try to transform and scale with AI. Automation is exciting and powerful, but if it comes at the expense of meaningful team connections, you’re going to lose out on the human element that makes successful scaling possible.

Because of this, leaders must ensure that they hire for cultural fit, and not just focus on the skills listed on a resume. The Harvard Business School cites hiring for quantity, rather than quality, as one of the biggest setbacks that can occur when scaling. Organizations should prioritize high-impact roles while also ensuring that new hires will help maintain the culture, rather than dilute it.

This doesn’t mean hiring people who are exactly alike. However, I’ve found that a new hire who shares your organization’s values and preferred work practices will be an easier addition and be much more likely to follow through with your desired organizational outcomes. Additional training is often needed during the initial onboarding phase to help new team members integrate with their coworkers and align with the company’s goals and vision. Pairing new hires with an experienced mentor can be especially valuable in building early connections and ensuring full alignment.

Even as leaders bring on new hires, they must continue to give regular attention to the existing team. The standards of transparent communication and consistent recognition need to be upheld. Without regular communication (whether that be a weekly check-in or a daily huddle), it can be surprisingly easy for team members to fall out of alignment, particularly as the scope of their work changes. In my experience, how you do this can vary based on the needs of your team. But no matter what these check-ins look like, they need to remain a priority.

This is especially important to prevent role confusion and siloing as teams grow, particularly in organizations that are also implementing AI. Shifting and delegating responsibilities is often necessary to prevent burnout, but if team members are uncertain about their new role or become siloed from those they were previously close to, it can lead to dissatisfaction and turnover. Sharing data and emphasizing cross-departmental collaboration can help keep connections strong as the organization scales.

Even as teams grow, leaders should also prioritize internal communications to keep everyone engaged and maintain a sense of cohesion. The type and level of communication each individual needs will likely differ. Personalizing one will help everyone feel valued and ensure that the right messages reach the right people.

Make team connections a priority

While there are a seemingly endless number of tasks you can take on before, during, and after a scaling initiative, creating a workplace that fosters true team connections should always remain a top priority.

By fostering an environment that promotes effective and transparent communication, consistent recognition of employees and knowledge-sharing and mentoring for both new and existing hires, you can develop a team that is ready for all phases of growth.