In this strategic episode, Scott Ritzheimer, Founder of Scale Architects, shares how to push forward into Predictable Success even when your team is imbalanced and you’re already in Whitewater. If external pressures force you to scale despite missing the ideal style mix, you won’t want to miss it.
You will discover:
- Why some organizations must drive to Predictable Success even with an imbalanced team
- How to protect the operator voice using the designated driver strategy
- What five systems you must build while still freeing operators to execute
This episode is ideal for for Founders, Owners, and CEOs in stages 3,4,5 of The Founder's Evolution. Not sure which stage you're in? Find out for free in less than 10 minutes at https://www.scalearchitects.com/founders/quiz
Scott Ritzheimer is the founder of Scale Architects and a leading expert on organizational life cycle and founder leadership. He has helped launch nearly twenty thousand businesses and nonprofits and, before turning thirty-five, built and sold his own multimillion-dollar company after a decade of double-digit growth. Today he helps founders and CEOs who have people to lead but are still buried in the daily grind, giving them a clear next step instead of a theory. He is host of the Start Scale Succeed podcast and author of The Founder's Game.
Want to learn more about Scott Ritzheimer's work at Scale Architects? Check out his website at https://www.scalearchitects.com/
Connect with Scott through his LinkedIn at https://www.linkedin.com/in/scottritzheimer/
Pre-order a copy of Scott Ritzheimer's book "The Founder’s Game" at https://www.scottritzheimer.com/book/pre-order
Hello, hello, and welcome, welcome once again
Scott Ritzheimer:to the Start, Scale, and Succeed podcast-the only podcast that
Scott Ritzheimer:grows with you through all seven levels of your journey as a
Scott Ritzheimer:founder. I'm your host Scott Ritzheimer, and we are here in
Scott Ritzheimer:part five of our series. You're not in whitewater, dot dot dot
Scott Ritzheimer:yet, and we've covered a lot of ground so far. If this is your
Scott Ritzheimer:first time hearing about us, you might want to go back and check
Scott Ritzheimer:out a couple of the previous episodes because we're going to
Scott Ritzheimer:give you a much easier path to success if you're feeling some
Scott Ritzheimer:of the problems we're going to talk about in this episode. In
Scott Ritzheimer:episode one, we talked about the life cycle, we talked about the
Scott Ritzheimer:leadership styles, and we talked about really the only good
Scott Ritzheimer:reason for ending up in that this third stage that we call
Scott Ritzheimer:whitewater, and you don't want to end there for any reason
Scott Ritzheimer:other than the reason that you have to, and that reason is
Scott Ritzheimer:because you have you've operated so well that you've created so
Scott Ritzheimer:much success that the complexity from that success has thrust you
Scott Ritzheimer:into the whitewater stage, and if that's the case, you need to
Scott Ritzheimer:add some systems and processes to how you make decisions as an
Scott Ritzheimer:organization, and that's what's going to help you get to
Scott Ritzheimer:predictable success, where you can scale. And this is all based
Scott Ritzheimer:on the predictable success model from Les McEwen. In the three
Scott Ritzheimer:episodes that followed, we talked through the three
Scott Ritzheimer:categorical errors that organizations make in the stage
Scott Ritzheimer:before that, in the fun stage, that causes them to end up in
Scott Ritzheimer:whitewater prematurely, and you don't want to do that because if
Scott Ritzheimer:you do, you end up in this really gnarly stage where you're
Scott Ritzheimer:making a bunch of mistakes, where there's infighting on the
Scott Ritzheimer:team, where you're losing confidence as a leader, where
Scott Ritzheimer:profitability drops, all the bad things, lots of bad things. You
Scott Ritzheimer:end up in that stage twice as long. It's twice as hard to get
Scott Ritzheimer:out, and it's going to cost you twice as much to do it. And so
Scott Ritzheimer:we want to avoid those as much as we possibly can. And the
Scott Ritzheimer:answer, if you end up in any of those categorical errors, is to
Scott Ritzheimer:try and unwind it to get back to the fun stage, to simplify, and
Scott Ritzheimer:then to refine refine the system so that your operators can
Scott Ritzheimer:succeed. That's fundamentally the same pattern in every single
Scott Ritzheimer:one of them, although the root is a little different. But here
Scott Ritzheimer:in this lesson, I want to talk about your other choice because
Scott Ritzheimer:you really do have a choice when you're in the whitewater stage,
Scott Ritzheimer:whether you did it by default or by design, you're left with a
Scott Ritzheimer:choice. The only thing that you can't choose is to stay in
Scott Ritzheimer:whitewater. But the two things that you can choose are to go
Scott Ritzheimer:back to fun, which is what we've talked about in these last three
Scott Ritzheimer:episodes, or you can drive forward into predictable
Scott Ritzheimer:success, and so what I want to talk about in this episode is
Scott Ritzheimer:for those of you who are either a glutton for punishment, really
Scott Ritzheimer:like to do hard things just because they're hard, or are in
Scott Ritzheimer:some type of a situation where you have to move forward to
Scott Ritzheimer:predictable success, and I want to talk about what those are and
Scott Ritzheimer:what you would do about it. All right, so let's look at this.
Scott Ritzheimer:Why would you have to get to predictable success even if you
Scott Ritzheimer:have an imbalanced team? So if you're overvisioned and need to
Scott Ritzheimer:get to predictable success, or overprocessed or over
Scott Ritzheimer:synergized, well, oftentimes it's because of things that are
Scott Ritzheimer:happening outside of the organization, or promises that
Scott Ritzheimer:are made outside of the organization, and so when we
Scott Ritzheimer:look at organizations that are overvisioned, that have to get
Scott Ritzheimer:to predictable success, the most common reason why is because
Scott Ritzheimer:they've made commitments to outside stakeholders and they
Scott Ritzheimer:have to fulfill them. Again, this is the primary challenge in
Scott Ritzheimer:tech industries, especially the venture-backed tech industry, is
Scott Ritzheimer:that we we hyper invest in these early stage organizations
Scott Ritzheimer:expecting huge returns. Which means that if you're going to
Scott Ritzheimer:survive as an organization, it's you have to knock it way out of
Scott Ritzheimer:the park and then maybe even out of the stratosphere, or you
Scott Ritzheimer:disappear.
Scott Ritzheimer:Those are organizations that have so much investment that
Scott Ritzheimer:they can't actually stay in fund because they would never be able
Scott Ritzheimer:to pay the investment back. So they have to get to predictable
Scott Ritzheimer:success, and they usually have to do it pretty quick. An
Scott Ritzheimer:overprocessed organization that has to get to predictable
Scott Ritzheimer:success is usually one that the process isn't just the the
Scott Ritzheimer:nature of the founder or leadership team, but it's a
Scott Ritzheimer:necessary underpinning for the industry. Some examples of this
Scott Ritzheimer:are like financial services, especially these days. There are
Scott Ritzheimer:so many rules and regulations that you almost have to have
Scott Ritzheimer:processors in the mix pretty early, and and so some of you,
Scott Ritzheimer:if you're trying to scale a firm in a space like that, attorneys,
Scott Ritzheimer:similar thing for attorneys. Sometimes you have to have a lot
Scott Ritzheimer:more process than would be ideal for the fund stage, and we have
Scott Ritzheimer:to figure out how to scale anyway. How about synergists?
Scott Ritzheimer:Well, if you're in the nonprofit space. It kind of comes with the
Scott Ritzheimer:territory. Most of the people are going to be attracted to
Scott Ritzheimer:working in a nonprofit. Generally, want to do it because
Scott Ritzheimer:they want to help other people, and so you might find that in a
Scott Ritzheimer:nonprofit or in a super customer service heavy industry like a
Scott Ritzheimer:concierge service, for example, you have to have a lot of
Scott Ritzheimer:synergists just to do whatever it is that you do to be a
Scott Ritzheimer:concierge. You need a lot of that people orientation, and so
Scott Ritzheimer:there will be circumstances when you don't have the ideal mix,
Scott Ritzheimer:but you still have to get to predictable success anyway. And
Scott Ritzheimer:what I want to talk about is how you can do that, or at least
Scott Ritzheimer:give yourself the best shot of doing it because there's no
Scott Ritzheimer:guarantees. You're in for an uphill battle, one that can be
Scott Ritzheimer:won, but you have to recognize that it's going to be a
Scott Ritzheimer:challenge. Fundamentally, what you need to do is you need to
Scott Ritzheimer:fight on a couple fronts at the same time. The first thing that
Scott Ritzheimer:you have to do is you have to really fight for your operators.
Scott Ritzheimer:So again, if you're in, we'll go back to the concierge service,
Scott Ritzheimer:and and you've got a bunch of synergists around, and they're
Scott Ritzheimer:driving your operators crazy, and maybe even driving them out
Scott Ritzheimer:of the organization. You cannot sustain predictable success
Scott Ritzheimer:without enough operator. It it won't happen. You have to have
Scott Ritzheimer:all four styles in predictable success, which means you need to
Scott Ritzheimer:have operators. So it's you have to start by fighting for the
Scott Ritzheimer:operators that you have, and trying to make sure as best you
Scott Ritzheimer:can that you have that operator voice as part of your decision
Scott Ritzheimer:making process. Now the obvious way to do that is to add an
Scott Ritzheimer:operator to the team, but that's not always a possibility.
Scott Ritzheimer:Sometimes you don't have them. Sometimes you don't trust them.
Scott Ritzheimer:There are many reasons why you might not be ready for that or
Scott Ritzheimer:able to do that. And so, what we want to do is we want to use
Scott Ritzheimer:something called the designated driver strategy, and that is
Scott Ritzheimer:where we designate somebody in the meeting as our operator for
Scott Ritzheimer:the meeting, right? It's not the same person every time because
Scott Ritzheimer:we don't want someone to be pigeonholed into that role,
Scott Ritzheimer:especially if it's not their strong suit. But if we share
Scott Ritzheimer:that burden as a team and we kind of rotate it through and we
Scott Ritzheimer:say, you know, Jimmy, you're our operator for today's meeting.
Scott Ritzheimer:You good with that? Jimmy says yes, and Jimmy just sits there
Scott Ritzheimer:and thinks, hey, what would an operator say in this situation,
Scott Ritzheimer:now Jimmy may be skilled, Natty may not, but that is a skill
Scott Ritzheimer:that you can develop as a team: is to try and see the challenge
Scott Ritzheimer:that you're discussing through the lens of an operator, through
Scott Ritzheimer:the eyes of an operator, and so that's a really helpful way. If
Scott Ritzheimer:you can't get someone on the team, then try and get someone
Scott Ritzheimer:who's already on the team to to carry more of that weight for
Scott Ritzheimer:you, and the best way to do that is to alternate it and cycle
Scott Ritzheimer:through the different members. One of the things that you'll
Scott Ritzheimer:find, and a quick plug for our team leadership styles
Scott Ritzheimer:report-it's a great way of figuring this out.
Scott Ritzheimer:But one of the things that you'll find is that you might
Scott Ritzheimer:have folks on your team who aren't operators. It's not like
Scott Ritzheimer:they're strong suit, but that they do have that operator trait
Scott Ritzheimer:in them. It's blended in with something else. Those folks make
Scott Ritzheimer:great designated drivers in the the VOPS format of that. The
Scott Ritzheimer:visionary operator processor synergist, not trying to get
Scott Ritzheimer:home after a fun night. The next thing that you need to do, and
Scott Ritzheimer:and these are really simultaneous. They're
Scott Ritzheimer:overlapping, which is what makes it so hard. Is that you also
Scott Ritzheimer:have to recognize what the systems and structures you are
Scott Ritzheimer:you need to overcome the complexity that you face, which
Scott Ritzheimer:is going to be a lot. And what we have to do is recognize that
Scott Ritzheimer:the systems and processes that the industry demands are
Scott Ritzheimer:generally not the same systems and processes that scale
Scott Ritzheimer:demands, and this is why in very processor-heavy industries you
Scott Ritzheimer:don't see a whole lot of big organizations. Actually, a
Scott Ritzheimer:better way of saying it is you don't see a whole lot of
Scott Ritzheimer:mid-sized organizations because you're either really small or
Scott Ritzheimer:you get really big, and the reason for that is because
Scott Ritzheimer:navigating the space of getting the right systems and processes
Scott Ritzheimer:that don't chase your operators away, that meet the industry
Scott Ritzheimer:need, and then adding the system and process that's necessary for
Scott Ritzheimer:scale is pretty tricky. There are five key areas that this
Scott Ritzheimer:happens, and they are in your organizational structure being
Scott Ritzheimer:really clear, the way that you make decisions being really
Scott Ritzheimer:clear, the way that you integrate sales and the other
Scott Ritzheimer:functions of the business that are necessary to deliver value
Scott Ritzheimer:for your client, we call that cross functionality. You have to
Scott Ritzheimer:have not just have a mission, vision, values, but you have to
Scott Ritzheimer:be able to align every action in the organization with your
Scott Ritzheimer:mission, vision, values, and you do that through clear tactics
Scott Ritzheimer:and clear strategies, and then finally you have to have a
Scott Ritzheimer:mechanism for empowering decision making throughout the
Scott Ritzheimer:organization, not just from the central team. Les goes over all
Scott Ritzheimer:five of those in his book, Predictable Success. We've got
Scott Ritzheimer:something called an acceleration program for those of you who
Scott Ritzheimer:want to implement. All of our scale architects are highly
Scott Ritzheimer:trained in those five areas and can help you to to figure out
Scott Ritzheimer:which of them is most relevant for you and your organization.
Scott Ritzheimer:So, check out one of our scale architects in the directory and
Scott Ritzheimer:ask them about an acceleration program. They'll be able to help
Scott Ritzheimer:you out. And what that acceleration program will do,
Scott Ritzheimer:what again, the Predictable Success book will do is help you
Scott Ritzheimer:to recognize the difference between the industry procedures
Scott Ritzheimer:that are necessary and the systems and processes that you
Scott Ritzheimer:need for scale. And again, you have to walk the tightrope of
Scott Ritzheimer:freeing your operators as much as possible while staying within
Scott Ritzheimer:the industry procedures and adding system and process
Scott Ritzheimer:outside of it is not an easy thing to do, but because it's
Scott Ritzheimer:not an easy thing to do, generally the rewards of doing
Scott Ritzheimer:it are astronomical. If you can get through adding all of that
Scott Ritzheimer:system and structure we talked about and still have quality
Scott Ritzheimer:operators in key roles, those are organizations that achieve,
Scott Ritzheimer:you know, to some extent, like hyper predictable success. This
Scott Ritzheimer:is where you've got the blend of processor and visionary, and the
Scott Ritzheimer:operator holding that all together and driving it forward.
Scott Ritzheimer:You can see some extraordinary results from teams that figure
Scott Ritzheimer:this out. Extraordinary results. It's really really cool, so it's
Scott Ritzheimer:worth it if you can get all the way through, and that's just the
Scott Ritzheimer:cost that you have to count before you you really go at it.
Scott Ritzheimer:The next one is the the over synergized organization. So if
Scott Ritzheimer:you're an over synergized organization and you need to get
Scott Ritzheimer:to predictable success, what would a good example of this be
Scott Ritzheimer:so? I've seen this happen for for a nonprofit that gets a
Scott Ritzheimer:gigantic grant. Right, they've been plugging along at about a
Scott Ritzheimer:million dollars a year, and then they get a $10 million grant
Scott Ritzheimer:given over you know two years or three years, and it's just like
Scott Ritzheimer:we've got to we've got to deliver on this because there's
Scott Ritzheimer:$100 million grant behind it if we can deliver, and like you
Scott Ritzheimer:have to go from zero to 1000 like overnight.
Scott Ritzheimer:You gotta go, and you've got a bunch of people who aren't used
Scott Ritzheimer:to that. They're not used to that pace. They're not used to
Scott Ritzheimer:that speed. They're not used to the corporateness. They're not
Scott Ritzheimer:used to the accountability. They're not used to the
Scott Ritzheimer:pressure, and it's a real challenge. Well, again,
Scott Ritzheimer:similarly, what you have to do is make sure that you optimize
Scott Ritzheimer:for the operators that you have, like we talked about earlier,
Scott Ritzheimer:and especially so because being super synergistic is very likely
Scott Ritzheimer:to alienate your operators. So one of the things that I would
Scott Ritzheimer:encourage you is usually what happens in this circumstance is
Scott Ritzheimer:that you're adding a bunch of people, and the first thing that
Scott Ritzheimer:you want to do is use that org chart stuff that we talked about
Scott Ritzheimer:earlier, the organizational design, and design it with
Scott Ritzheimer:operators in mind, not just the synergists that you would
Scott Ritzheimer:normally know and like and hire. And instead of creating a hiring
Scott Ritzheimer:process to bring in a bunch more visionary synergists like you,
Scott Ritzheimer:try to create a hiring process that attracts operators as well.
Scott Ritzheimer:Really, really important. Create roles in which operators can
Scott Ritzheimer:thrive, so that when you scale up, you bring in operators. You
Scott Ritzheimer:get a bunch of folks who get stuff done. You can actually
Scott Ritzheimer:deliver on the promises you made that led to the reason you need
Scott Ritzheimer:to scale up in the first place. And then it's the same areas
Scott Ritzheimer:that we talked about earlier. It's the organization design.
Scott Ritzheimer:It's how we make decisions. In fact, usually for synergists,
Scott Ritzheimer:it's getting beyond consensus and this kind of over focus on
Scott Ritzheimer:buy-in and actually moving it to where the smallest number of the
Scott Ritzheimer:right people can make decisions as quickly as possible, as
Scott Ritzheimer:opposed to the greatest number of everybody as possible. And
Scott Ritzheimer:so, in all of these, what has to happen is you have to focus on
Scott Ritzheimer:those big five areas, right? And you have to increase the
Scott Ritzheimer:operator style. And generally, what that means is decreasing
Scott Ritzheimer:whatever other style came in at the same time, and the problem
Scott Ritzheimer:with that-the real problem with that-is not actually tactical in
Scott Ritzheimer:nature at all. It's cultural in nature. The hardest part about
Scott Ritzheimer:having to do both of these things at the same time is that
Scott Ritzheimer:you have to-you have to, to some extent, rewire your culture to
Scott Ritzheimer:fully embrace operators, while also going through the process
Scott Ritzheimer:of rewiring your culture to embrace processors as well,
Scott Ritzheimer:while also implementing all these systems and processes,
Scott Ritzheimer:while also continuing to try and grow, it's just a lot all at the
Scott Ritzheimer:same time. And for those of you who are in that position, and
Scott Ritzheimer:really anybody, we'd love to help anybody, but for those of
Scott Ritzheimer:you who the stakes are that high, I would highly recommend
Scott Ritzheimer:that you don't try to do it alone because you can get
Scott Ritzheimer:through, but it usually takes about three times as long when
Scott Ritzheimer:you're trying to figure it out on your own as it would if you
Scott Ritzheimer:had a guide that would help you through it. And so, I don't want
Scott Ritzheimer:to make this a sales pitch that's. What it's about all the
Scott Ritzheimer:time, but for those of you in the highly unenviable position
Scott Ritzheimer:of having to plow through and get to predictable success
Scott Ritzheimer:quickly, even though you don't have the ideal combination to
Scott Ritzheimer:get there, I would strongly encourage you to find some help.
Scott Ritzheimer:Get a guide. Get a skill architect to come in and help
Scott Ritzheimer:you out, and it's going to make a huge, huge difference because
Scott Ritzheimer:you won't have to guess how to grow. You can bring someone in
Scott Ritzheimer:who's got the skill, who understands how these are, who's
Scott Ritzheimer:done it, you know, hundreds or 1000s of times, who's seen the
Scott Ritzheimer:patterns, who knows how they play out, and can help you to
Scott Ritzheimer:avoid some of the biggest pitfalls. So check out our
Scott Ritzheimer:directory. We've got lots of great scale architects all
Scott Ritzheimer:across the country. In fact, we've even got some around the
Scott Ritzheimer:world that you can check out, and they'd love to help you out.
Scott Ritzheimer:They'd love to help you out. And with that, I hope you learned a
Scott Ritzheimer:lot about Whitewater. I hope you. I hope many of you realized
Scott Ritzheimer:you didn't actually have to be in Whitewater, and that you've
Scott Ritzheimer:got plenty of time left in fun. That that really is my deepest
Scott Ritzheimer:hope.
Scott Ritzheimer:And for those of you who realize, hey, we really are in
Scott Ritzheimer:whitewater. We've got enough people around here. We've got
Scott Ritzheimer:enough on the line that we have to do it now, and I really mean
Scott Ritzheimer:have to do it now. I hope you've got some insight into what that
Scott Ritzheimer:road's going to look like, how to start addressing it both
Scott Ritzheimer:culturally and tactically, and and I hope you get the help to
Scott Ritzheimer:do it as well. So with that, I want to thank you for going on
Scott Ritzheimer:this journey with me as fun little project. This is
Scott Ritzheimer:something that I'm seeing a lot of. The reason why I wanted to
Scott Ritzheimer:take some time on this and really make a series of it is
Scott Ritzheimer:because I'm finding most of the people who think they're in
Scott Ritzheimer:whitewater are actually not there by necessity. Most of the
Scott Ritzheimer:people that I'm finding in Whitewater actually don't have
Scott Ritzheimer:to be there, and that might be the case for you as well. And
Scott Ritzheimer:so, with that, I hope this was helpful for you. I hope you
Scott Ritzheimer:enjoyed this little series. I hope it was interesting. I hope
Scott Ritzheimer:you learned something, and more than anything, I hope you have
Scott Ritzheimer:confidence in the next step that you need to take for your
Scott Ritzheimer:organization to achieve your vision. With that, you know your
Scott Ritzheimer:time and attention mean the world to us. I thank you so much
Scott Ritzheimer:for sharing that with us, and I hope you enjoyed this series. I
Scott Ritzheimer:can't wait to see you next time. Take care. Hey everyone, Scott
Scott Ritzheimer:Ritzheimer here. Thank you so much for listening to the Start
Scott Ritzheimer:Scale and Succeed podcast. I hope this episode gave you
Scott Ritzheimer:exactly what you need for the level you're in right now. If
Scott Ritzheimer:you want to discover what level you're in, take our 10 question
Scott Ritzheimer:Founders Evolution Quiz for free at foundersquiz.com. That's
Scott Ritzheimer:foundersquiz.com. It'll pinpoint exactly where you are and give
Scott Ritzheimer:you tailored tips to move forward and reach that next
Scott Ritzheimer:level in your journey as a founder. If you got something
Scott Ritzheimer:out of today's episode, don't forget to subscribe, rate, or
Scott Ritzheimer:review. It helps us reach more founders like you, and let's be
Scott Ritzheimer:honest, it means a ton to me, my team, and all our incredible
Scott Ritzheimer:guests. So keep starting, scaling, and succeeding, and
Scott Ritzheimer:I'll see you in the next episode.