Bespoke Solutions’ Post

Apologies for the delay in posting! With baby #2 due this week, I've been been the GC renovating 3 rooms of our home over the last month. Without further ado: The Importance of a Well-Rounded Chief of Staff in Mitigating the Pitfalls of the Peter Principle for Startup CEOs As a seasoned change management consultant, I've navigated through the intricacies of organizational dynamics and witnessed firsthand the consequences of the Peter Principle, especially within the realm of startup companies. The Peter Principle states that individuals are generally promoted to positions beyond their competence, ultimately resulting in organizational inefficiencies and failures. Nowhere is this phenomenon more evident than in the realm of startup Founder/CEOs, who often find themselves thrust into the highest echelons of leadership on little notice and told to deliver. On Monday she could be coding with three friends since high school, by Tuesday could get VC capital, and by Wednesday be the CEO of a company valued in the millions of dollars and tasked to ramp-up to profitability over six quarters. Few Founder/CEOs survive this transition because they feel drawn to stay close to their product/team working in the trenches. This is the crux of the Founder/CEO befalling the Peter Principle - they are great coders but choose not to be great at managing coders. So, how can they overcome this pitfall? Enter the Chief of Staff – a critical ally in the arsenal of a young startup CEO to avoid the Peter Principle trappings. Unlike traditional executive roles, the CoS operates as a versatile linchpin, bridging the gap between strategy and execution. The COS does this by standing outside of the standard COO/CTO/CRO hierarchy and instead focusing on giving their CEO the three things they don't have enough of: (1) TIME to think strategically (2) BANDWIDTH to explore options and peek 1/3/5 years down the road and (3) COMMUNICATION STRUCTURE to cascade her decisions down the corporate ladder. How does the CoS do this? By: (1) overseeing day-to-day operations (2) being a trusted advisor and proxy when needed (3) handling ad hoc issues across all departments of the company (4) creating strategic initiatives and navigating complex challenges (5) acting as a sounding board and providing critical feedback/guidance every step of the way (6) streamlining operations, aligning priorities, and driving execution across the organization (7) keeping their finger on the pulse of the company. When looking for a CoS, remember their role is to help you rise above the day to day operations of HR, Legal, Marketing, Ops, Accounting, PR, etc.. As such, your candidate's work experience should reflect that breadth. Make sure to look beyond just MBAs. You're not looking for a master of one or two issues - as MBAs often are - rather, you're looking for a diversified corporate athlete capable of deftly handling anything.

Alex Guinta

Director of Venture Capital, Private Equity, & Technology [email protected]

8mo

early congrats on #2!

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