VentureSquare reports on organizational dynamics in scaling startups

VentureSquare reported on the organizational challenges faced by startups as they scale, focusing on the transition from agile teams to rigid structures. The article, authored by JiHyun, examines how the way founders perceive and manage their employees impacts company growth and retention. It highlights that while startup leaders often possess strong technical skills and resilience, their teams frequently experience high turnover and disengagement. The core issue identified is not the hiring process or HR policies, but rather the founder's method of evaluating people and the disconnect between leadership judgment and on-the-ground reality. The piece argues that when communication channels close, startups lose their defining flexibility and become authoritative organizations where a few individuals make all decisions without input from the field.

The author emphasizes that delegation is necessary for growth, but it must not result in the loss of direct insight into operational realities. Reports and summaries are useful, but relying solely on them to judge employee capability or problem causes leads to misaligned decisions. The article notes that employees who join with passion may become disengaged if they feel the company's communication is authoritarian and if their voices are ignored. This disengagement weakens the company's growth momentum. The author suggests that leaders should actively lower the tension among team members to encourage honest feedback, which allows founders to recognize and correct their own errors. While technology, capital, and systems are critical for scale-up, it is people who actually drive these elements.

The article concludes that a startup loses its identity when its people stop speaking up, and that growth slows when founders can no longer see the individuals behind the work. The author, JiHyun, brings over thirty years of experience in marketing and sales from global pharmaceutical companies, including Abbott, AstraZeneca, Gilead, and Allergan, to this analysis. She currently helps growth-stage companies and investment portfolios in Korea and Singapore connect commercial strategy with business results.