Scaling Startups: Giving Away Your LEGO and Embracing Growth
If you work at a startup, are at a scaling company, or are considering joining one - you should read this ARTICLE right now.
Scaling a company is both thrilling and daunting. It's the stage where ideas transform into reality, where the foundation built by a small team starts to support something bigger, faster, and more dynamic. Yet, for many early employees, this transition comes with its fair share of emotional and practical challenges. Molly Graham, who has witnessed the meteoric growth of companies like Facebook and Google, encapsulates this feeling with a simple but profound metaphor: "Give away your Legos." The process of scaling isn’t just about growing headcount or revenue; it’s about navigating the turbulence of constant change, adjusting to new roles, and understanding that the only constant in a scaling startup is evolution.
In this article, we’ll delve into Graham’s key points on the phases of scaling, the emotions that come with it, and practical strategies to help you and your team embrace the chaos of growth.
The Emotional Roller Coaster of Scaling
Imagine being part of a small startup. At first, you wear multiple hats, juggle ten different jobs, and relish the challenge of building something from scratch. But as the company grows, the dynamics shift. New people come in, taking over tasks you once handled. Suddenly, you’re faced with a strange cocktail of emotions: excitement, anxiety, insecurity, and even territoriality. It’s akin to a child sharing their favorite toy. Graham calls this "the Legos problem"—a simple analogy to describe the tension of letting go of responsibilities.
As a startup scales, employees must become comfortable with handing over pieces of their work. This emotional shift is critical, not just for individual growth, but for the company’s success. High performers who thrive in fast-growing companies are those who learn to give away their Legos—letting go of tasks and responsibilities to take on bigger and more impactful roles.
But why is this so difficult?
Scaling challenges are often counterintuitive. The natural instinct is to hold on tighter when you feel like control is slipping away. You might worry that a new hire won’t do the job as well as you, or worse, that they’ll do it better. Yet, in a scaling environment, holding onto your Legos prevents both personal and organizational growth. The secret lies in recognizing that by giving up pieces of your work, you’re freeing yourself up to tackle even more exciting challenges.
Growth Phases: From Chaos to Culture
Graham breaks down the scaling journey into distinct phases, each with its own set of challenges. These phases provide a roadmap for what teams and founders should expect as they grow.
1. 30 to 50 Employees: From Family to Company
At the start, a small team functions more like a family. Communication is easy, informal, and direct. Everyone knows each other, and the sense of camaraderie fuels productivity. But as the team grows beyond 30 people, this dynamic shifts. Suddenly, you’re no longer a group of friends around one table. People start feeling disconnected from decisions, unsure of what’s happening across the company.
At this stage, the focus should be on formalizing the company’s identity and values. Writing down the company’s mission, values, and philosophies becomes crucial. While this might feel unnecessary at first, especially when you’re still small, it will pay off massively as you scale. Employees need to know the core principles that guide decision-making. Clear, consistent communication becomes essential to maintaining alignment across the growing team.
2. 50 to 200 Employees: Foundation Building
Graham likens this phase to the formative years of a child’s life. It’s a critical period for instilling values, setting expectations, and building the foundation for future growth. Hiring during this stage is especially important, as early hires set the tone for the company’s culture. Referrals play a significant role here—high performers tend to refer other high performers, creating a network effect that can either boost or hinder the company’s growth trajectory.
Firing becomes equally important. Holding onto low performers, even out of fear or discomfort, can erode team morale and lower the overall quality of work. It’s crucial to part ways with individuals who aren’t contributing to the company’s long-term success. This phase is also where you’ll need to formalize processes without creating unnecessary bureaucracy. Focus on principles over rigid rules, allowing for flexibility as the company continues to evolve.
3. 200 to 750 Employees: Adolescence
By the time a company reaches 200 to 750 employees, it starts to resemble a teenager—going through growth spurts, developing new habits, and testing boundaries. The company's personality is largely shaped by this point, and the focus shifts to scaling the existing culture and processes. Leadership becomes even more critical, as the CEO and other department heads need to clearly articulate the company's vision and ensure that teams remain aligned.
This is also where bad habits can start to emerge. As teams grow, internal politics may develop. Employees might begin acting in their own self-interest rather than the company’s. Leadership needs to be vigilant, actively managing and addressing behaviors that don’t align with the company’s values. The success of this phase depends largely on how well the organization was nurtured in its earlier stages.
4. 750+ Employees: The Politics Phase
When a company surpasses 750 employees, its identity begins to shift from a unified entity to a collection of specialized teams. Employees may start identifying more with their specific departments than with the company as a whole. It’s at this stage that internal politics tend to solidify, as team leaders may focus more on their own success rather than the overall goals of the organization.
Maintaining strong communication across the company is vital to preventing silos and ensuring that every team’s work aligns with the company’s broader mission. Leaders at this stage need to be proactive, addressing issues before they become ingrained in the company’s DNA.
The Key to Scaling Success: Adaptability
At the core of successful scaling is adaptability. High performers in scaling startups aren’t just talented in their areas of expertise; they excel at evolving with the company. Their roles change frequently, sometimes dramatically, but they embrace this uncertainty, finding new ways to add value. This adaptability is key to surviving and thriving in a rapidly growing company.
Graham herself experienced this firsthand at Facebook, where her role shifted every three months as the company grew. She emphasizes that while this constant change can be uncomfortable, it’s also a source of excitement and opportunity. Those who are willing to give away their Legos—to let go of what they built to make room for something new—are the ones who will rise to leadership positions in the future.
Practical Tips for Scaling Successfully
So, how can you prepare yourself and your team for the chaos of scaling? Here are a few key takeaways:
Embrace change: Recognize that growth will bring discomfort and uncertainty, but that’s a sign of progress. Adaptability is the most important skill in a scaling company.
Give away your Legos: Don’t hold onto your responsibilities too tightly. As new people join, let them take over parts of your role so you can focus on bigger challenges.
Communicate constantly: As your team grows, communication becomes increasingly difficult. Over-communicate your company’s values, goals, and vision to ensure alignment.
Hire for quality, not speed: While it may be tempting to hire quickly, especially when scaling rapidly, it’s crucial to prioritize quality over quantity. Early hires shape your company’s future.
Build strong leadership early: Invest in leaders who can grow with the company. These leaders will play a critical role in maintaining culture and driving success as the team expands.
Trust the process: Understand that scaling is a marathon, not a sprint. There will be growing pains, but with the right mindset and strategies in place, your team can weather the storm and come out stronger on the other side.
Final Thoughts: Scaling is a Privilege
While scaling comes with its own set of challenges, it’s also a privilege. Being part of a company on a rocket ship is a rare and exciting experience. It’s an opportunity to build something larger than yourself and to tackle problems that only emerge when you're growing rapidly. By embracing change, giving away your Legos, and maintaining strong communication, you’ll be better prepared to navigate the chaos of scaling and emerge as a leader in your field.
In the end, scaling isn’t just about adding more people or increasing revenue—it’s about learning to adapt, to trust, and to grow alongside your company.
Also, one last fun fact… the company LEGO, actually uses the term as an adjective (such as LEGO bricks), and thus Legos isn’t actually the plural, or even a real word.
