Balancing Leadership and Management: How to Build a Scalable Company

Balancing Leadership and Management: How to Build a Scalable Company

Scaling a company isn’t just about growth; it’s about survival. It’s easy to assume that once your company hits a certain size, things magically start running themselves — but we all know that’s not how it works. In fact, scaling is messy. It’s hard. It’s really hard. You have to move from one (or a few) superheroes doing everything to an army of leaders who can keep the vision alive and managers who drive their teams to execute that vision. Here’s the kicker: many companies hit a growth ceiling because their leadership team gets stuck. And here’s where HR and L&D come in. The right leadership and management development programs can make or break your ability to scale.

In this article, Claire Hughes Johnson, author of Scaling People and Corporate Officer & Advisor at Stripe, and Tom Griffiths, CEO and co-founder of Hone, unpack some real talk about scaling and rethinking how you’re developing leadership and management. Let’s dive into the good stuff, from scaling leadership to building a culture of resilience, and why you might be missing a critical piece of your growth strategy.

Leadership and management: Two sides of the same coin

Scaling a company isn’t just about getting a brilliant visionary at the top. Sure, leadership is about setting a powerful vision, but it’s management that makes that vision actually happen. Leadership without management is just a daydream. As Claire Hughes Johnson, a seasoned scaling pro, puts it:

“I really believe that the most successful organizations balance leadership and management. Great leaders set the tone, but it’s the managers who ensure that everyone can execute on the vision.”

Think about it: You could have the most inspiring leader in the world, but without people making sure the daily tasks are done, that vision isn’t going anywhere. For HR and L&D, this means we need to build both leadership and management skills. It’s not one or the other — you need both, and it’s about time we stopped pretending otherwise.

Here’s where it gets tricky. In those early days, founders often operate in “founder mode,” where they’re up to their elbows in everything — strategy, marketing, hiring, customer support, you name it. And look, this mode works for a while! But at some point, founder mode has to give way to a scalable model where leaders can trust managers to take the reins on the day-to-day. Claire’s take on this is spot on:

“The right founder with the right curiosity and involvement can have a tremendous impact. But only if they trust and empower the leadership team to execute the vision. You can’t run a company in founder mode forever. At scale, you need strong managers.”

Translation? If the founder (or any other executive at the top) doesn’t learn to step back and let others lead, the company’s going to outgrow them, and fast. For L&D teams, this shift is a prime opportunity. To scale the right way, start building up your managers and giving them the tools to step up. As Tom Griffiths puts it:

“It’s not about having one super-executive who knows everything. You need empowered managers who take ownership. If you’re only investing in the C-suite, you’re stalling — not scaling. Step back and trust the structure you’ve built to hold the company up, instead of holding it up yourself.”

Your leadership team is important, but your managers are the real key to scaling. It’s easy to assume that once the leadership team is in place, everything will run like clockwork. But Claire brings it home when she says:

“Managers are the backbone of any scalable organization. You need people who can take responsibility for the day-to-day work and the execution. A strong leadership team can only get you so far. Managers are the ones who make sure everything gets done.”

If you don’t invest in developing managers who can handle autonomy, ownership, and tough decision-making, your growth will plateau. Managers aren’t just the people who supervise tasks; they’re the ones who make or break team performance.

Building scalable leadership and management development programs (even on a budget)

Not every company has the budget at the beginning to create a sprawling leadership academy or send every manager off to elite training programs. But here’s the good news — you don’t need a huge budget to build a scalable leadership and management program.

In fact, some of the most impactful leadership development tools can be designed in-house, low-cost, and agile. As Claire Hughes Johnson shares from her experience scaling at Stripe:

“When I was at Stripe, we built leadership programs that allowed us to scale as a company. We created a mini-curriculum and started a brown-bag lunch series for emerging leaders, so they could learn from each other and apply new skills in real-time.”

You don’t need to wait until you have a full-scale program. Here’s what you can start with:

Peer learning and mentorship: Pair up newer managers with experienced ones to create mentorships and informal learning exchanges. This encourages hands-on learning, accountability, and connection without requiring expensive resources.

Real-time skill-building workshops: Like Claire’s brown-bag sessions, create short, topic-focused workshops or discussions. These could be monthly meetings where managers come together to work through real problems they’re facing, learning together as a cohort.

Build a culture of continuous learning: Learning doesn’t end after one course or a “manager training” series. Create ongoing opportunities for managers to practice new skills and get feedback. As Tom Griffiths puts it:

“You need to create an environment where leaders can practice new behaviors and get feedback from others. Learning shouldn’t stop at the end of a course or seminar.”

Partner with a vendor for scalable support: Even on a tight budget, you don’t have to build everything from scratch. Partnering with a vendor that specializes in leadership development can provide you with access to facilitators and training on the most critical skills to scale your programs effectively. This can free up your team’s time while giving you high-quality resources to accelerate leadership development as you grow.

Celebrate and recognize progress: Learning is a journey. Make sure to highlight managers’ growth and achievements, especially when they overcome tough challenges. Recognition doesn’t need to be extravagant, but it goes a long way in motivating managers to keep developing.

Morale during growth: How leadership and management make the difference

When a company is scaling, keeping morale high is just as important as hitting revenue targets. As your team grows, it can be harder to keep everyone motivated and connected. And let’s be real: snacks and swag aren’t going to cut it. As Claire Hughes Johnson says:

“Morale isn’t about throwing parties or giving out swag. It’s about good management. Employees need to feel that their work is meaningful, that they’re learning and growing, and that they’re making a tangible impact on the organization.”

The key here is strong leadership and management. During growth, employees need to understand how their work connects to the bigger picture. If they don’t see the “why” behind what they’re doing, motivation starts to slip. HR and L&D can help by training managers to communicate that vision clearly and keep everyone aligned with the company’s goals.

But it’s not just about communicating strategy — it’s about recognizing effort. Don’t wait for a big milestone to celebrate progress. Recognize small wins along the way, because they add up.

Managers also need to give employees the autonomy to take ownership of their work. When people feel trusted, they’re more motivated to push through tough times. And, let’s not forget that empathy matters, too. As your company grows, it’s easy for leaders to get caught up in the bigger picture, but it’s the managers who make sure people feel supported and heard.

At the end of the day, morale is all about helping people feel like their work has purpose and that they’re valued. HR and L&D can make that happen by equipping managers with the tools they need to lead with empathy, purpose, and clarity.

Scaling leadership and management is a long game

Scaling a company isn’t just about acquiring customers or hitting revenue targets—it’s about developing a leadership team that can keep up with the pace of growth. HR and L&D leaders are the architects of this success. If you’re only developing a few high-potential leaders, you’re missing the point. You need to create an ecosystem where leadership is a shared responsibility, managers are empowered, and morale is consistently nurtured.

The bottom line: if you don’t scale leadership effectively, you’ll hit a growth ceiling faster than you can scale your product. So take a hard look at your leadership pipeline and start asking the tough questions now, before it’s too late. Are you ready to invest in scalable leadership, or are you going to wait until your growth starts running out of steam?

Hone can help you build scalable leadership and management programs by offering flexible, interactive, online training that’s designed to grow with your company. With expert-led sessions and on-demand learning, you can provide your managers with the skills they need without draining your resources.

 

For more actionable insights on scaling leadership, managing growth, and the balance between leadership and management, be sure to check out the podcast with Tom Griffiths and Claire Hughes Johnson. It’s packed with great advice for leaders navigating these challenges.