As the company grows, middle management is established. It is a tough change for the overall organization. Everything starts becoming a process. Well-established rules are set. What used to be normal begins to feel like baggage. Early employees who have been on this journey with the company start feeling locked in. Some leave because of this mismatch.
As a founder, it’s a tough call: groom internally or hire experienced senior management.
The positives of internal grooming are that they understand the company’s culture, vision, and true north. The negatives are their inexperience and blind spots. If they don’t adapt to the company’s new direction, it can lead to a deadlock with the founders and even within the team itself. It is rare to find and groom such mature talent with a stable mindset. We at Taghash have taken this bet. It has been mixed for us so far. We don’t quit so easily.
The positives of external hires in senior roles are that they are mature and can execute a turnaround in no time. It becomes more of a rational exercise, but it can affect existing team members overnight by introducing a layer between them and the founders. The negatives are their blind spots and rigid sets of practices that have worked for them in the past. There is also the challenge of understanding their incentives. If not handled well, this approach can open up a divide between the team and management.
There is no right or wrong approach. Things work differently for different founders and their organizations.