Scaling Teams

1. Recognize the critical importance of people management in scaling teams

"People management provides the structure and connective tissue to allow a group to achieve a common objective."

Core functions of people management. Effective people management involves getting the right people on the team, ensuring team happiness and productivity, helping the team succeed in their work, and providing necessary resources. These functions are critical regardless of team size or composition.

Consequences of poor management. Neglecting people management can lead to:

• Adding the wrong people to the team
• Declining morale and productivity
• Lack of focus and prioritization
• Resource starvation

These issues can result in burnout, team conflict, loss of faith in leadership, confusion about the team's mission, and unwanted departures from the company.

2. Transition from ad-hoc to formal management at the right time

"As the team grows larger, this mode starts to break down."

Scaling stages. Companies typically follow a common path in scaling people management:

1. Early stage (5-25 people): Ad-hoc management by founders
2. Transition stage (25-100 people): Formal management roles introduced
3. Mature stage (100+ people): Multi-layer management and complex systems

Timing considerations. Factors influencing the ideal timing for transitioning to formal management include:

• Founders' previous management experience
• Maturity of the engineering team
• Team's familiarity with each other
• Decision-making ability
• Growth rate
• Importance of execution versus exploration

The transition should occur when the benefits of formal management outweigh the costs and risks associated with the change.

3. Implement essential people management practices early

"Without these fundamentals in place, most teams have no hope of scaling successfully."

Essential practices. Even in ad-hoc management, certain fundamentals should be in place:

• Clear reporting structure
• Regular 1-on-1 meetings
• Discussion of job expectations and performance
• Understanding of career aspirations
• Provision of growth opportunities

Importance of basics. Implementing these practices early creates a foundation for successful scaling. They help maintain clear communication, align expectations, and foster employee growth, which become increasingly critical as the team expands.

4. Watch for warning signs that formal management is needed

"Recognizing these and taking action can help avoid a crisis."

Key warning signs:

• Failed 1-on-1 meetings
• Confusion about work direction
• Declining product quality and productivity
• Conflict between groups or individuals
• Declining morale and increasing attrition

Management debt. Ignoring these signs can lead to the accumulation of "management debt," which has long-term negative consequences for the team and company. Addressing issues promptly can prevent crises and maintain team effectiveness during growth periods.

5. Prepare the team for the introduction of formal management

"This is not the time for surprises."

Communication strategy:

• Be transparent about motivations and intentions
• Explain the value of people managers
• Define management culture and expectations
• Give the team advance notice (at least a month)

Addressing concerns. Open communication allows team members to voice concerns and express interest in management roles. This approach helps maintain trust and reduces potential resistance to the organizational change.

6. Develop a clear management culture and career paths

"An important goal is to avoid the perception that engineers are now second-class citizens who must be 'promoted' to managers in order to advance in their career."

Management culture. Define expectations for managers, including their primary focus (e.g., people development, execution) and how their performance will be evaluated. This clarity helps both managers and individual contributors understand the role's purpose and value.

Career paths. Establish parallel career paths for engineers and managers to:

• Recognize that management is a different role, not a promotion
• Avoid forcing senior engineers into management roles they may not want or excel in
• Provide clear advancement opportunities for both individual contributors and managers

7. Identify and nurture internal management talent

"Watch out for the temptation to take your top coders and make them managers... management is about people, it's not about code."

Identifying potential. Use the "Up-Sideways-Down" rubric to evaluate management potential:

• Up: Managing up (feedback, status reporting, issue escalation)
• Sideways: Collaboration with peers
• Down: Leadership and mentorship of others

Key traits to look for:

• Mentorship ability
• Clear communication
• Empathy
• Organic leadership
• Humility
• Strategic thinking

Red flags. Be wary of candidates who show:

• Poor stress management
• Conflict avoidance
• Communication difficulties
• Desire for control
• Information hoarding

8. Set realistic expectations for new managers

"Most first-time managers (like many first-time parents) feel woefully underprepared for their new responsibilities."

Key challenges for new managers:

• Adapting to the "manager's schedule" (frequent interruptions)
• Changing social dynamics with former peers
• Shifting from building things to enabling others to build
• Adjusting to being managed differently as a manager

Preparing for the transition. Discuss these challenges openly with new managers to help them mentally prepare for the role change. Set clear expectations about their new responsibilities and how their performance will be evaluated.

9. Provide ongoing support and education for new managers

"It would be nice to be able to say, 'Sign your new managers up for this 12-week class and they'll be totally set up for success!' But it's unlikely such a class exists..."

Lightweight learning approaches:

• Targeted reading and discussion
• Mentorship from experienced managers
• Professional coaching
• Management reading groups
• Focused practice sessions during 1-on-1s

Continuous development. Recognize that becoming an effective manager is an ongoing process. Provide regular opportunities for learning and growth, and create a culture where managers can openly discuss challenges and seek advice.

Last updated: October 5, 2024