· Agile Business OS · 2 min read
Scaling Companies Up Requires Some of The Startup Phase Scrappiness
Why scaling companies fail when they apply efficiency-tuned operating models to new product bets — and how to run a dual operating system that keeps startup scrappiness alive alongside scaled operations.
Founders know that scaling their company to Unicorn status requires extending beyond a singular focus.
Launching a product extension.
Complementing your established Go-to-market motion.
Entering new markets (Different ICP, Geography, etc. )
Often, companies approach these extensions using the same processes they use for their established Products/Markets.
They approach a new product opportunity with unwarranted conviction.
They go into a new market using established/scaled revenue operations.
They implement new motions using “big design up front”
They often spread too thin by working on multiple extensions simultaneously.
They work on them using the same processes and structures that are tuned for “efficiency” and “margin expansion”
That often turns out to be an expensive mistake.
Because unlike your established Product/Market, these extensions are often bets.
They often require multiple departments to collaborate tightly to find the extension’s Product-Market-Motion Fit.
They require an experimentation mindset (like the same company had in its pre-PMF days…)
Whether it’s new leaders brought in to “scale” the company, or the same leaders who were around during the initial leaner days, running a dual operating system - efficient and scrappy side by side - is hard.
I find it helpful to be explicit about your portfolio of activities - which can benefit from efficiency-focused operating systems, and need agile scrappiness.
Here’s one technique that can help you improve organizational traction on these strategic bets:
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Reflect on your goals (e.g. OKRs or items on your company Kanban board)
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Categorize them based on the level of bet they represent
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Decide what the right operating model is for them - Scrappy or Efficient?
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Manage the riskier Bets like VCs manage their startup portfolio
NOTE: This post is inspired by a Science of Selling Podcast episode on Extending to Multi-Product Selling.
About Yuval Yeret
Yuval is a rare practitioner who has shaped the agility path of dozens of organizations and influenced the frameworks used across the industry. He helps product and technology leaders move from agile theater to evidence-informed, outcome-oriented delivery that creates better value sooner, safer, and happier.
