Scaling Up Without Losing Startup Scrappiness
Why scaling companies stall when they run new product bets on efficiency-tuned operating models — and how a dual operating system keeps scrappiness alive.
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. )
Where scaling companies go wrong
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.
Extensions are bets, not certainties
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.
A technique worth trying
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
Where this idea came from
This post is inspired by a Science of Selling Podcast episode on Extending to Multi-Product Selling.
Practical thinking on turning AI pilots, adoption, and portfolio work into business impact - by finding the constraint, changing the work, and proving value as you go.
Yuval Yeret helps product and tech leaders move from agile theater to evidence-informed delivery. Work with Yuval →
