Becker Private Equity & Business Podcast: Episode Summary
Title: 10 Points on Building Teams
Host: Scott Becker
Release Date: June 5, 2025
Introduction to Team Building Philosophy
In Episode 10 of the Becker Private Equity & Business Podcast, host Scott Becker delves deep into the critical aspects of building effective teams within businesses. Drawing from personal experiences and insights from industry leaders, Becker outlines ten foundational points that emphasize the indispensable role of team-building in achieving business success.
Foundations of Team Building: Influences and Experiences
Becker credits his education on team building to two main influences:
- Jerry Peters of Latham: A respected leader in healthcare, Peters consistently emphasized that building great teams is essential for establishing a successful business or practice.
- Jim Collins: The renowned business thinker whose philosophy centers on "getting the right people on the bus," Collins asserts that the right team can propel a business to remarkable heights.
“If you want to build a great business, you want to build a great practice, you better build teams.”
— Scott Becker [00:35]
Becker reflects on his successes, attributing them to effective team building, while his failures often resulted from neglecting to invest in teams or attempting to build them inadequately.
The Importance of Sorting and Identifying Leaders
One of the most challenging aspects of team building, according to Becker, is sorting out team members—determining who will thrive, who will be integral, and who may not fit within the team dynamic. He emphasizes that:
“If you don't foundationally do that early on and make the effort to do it early on, you could be doing this for the next couple of decades in a very mediocre way.”
— Scott Becker [04:15]
Identifying and nurturing emerging leaders is crucial. Becker advises businesses to embrace and support these leaders early, ensuring they are retained and empowered to drive the company forward.
Case Studies: Successful vs. Single-Leader Companies
Becker shares contrasting experiences from his time serving on different company boards:
-
Successful Companies: These businesses invested in building robust teams of leaders, resulting in substantial achievements, such as one company that sold for nearly $1 billion.
-
Companies Relying on a “Supernova” Leader: These entities depended heavily on a single standout leader, limiting their growth and ultimate success.
This comparison underscores the vital difference team-centric companies have over those dependent on individual leaders.
“There's a real myth of this solopreneur concept.”
— Scott Becker [10:50]
Debunking the Solopreneur Myth
Despite the prevalent notion, especially amplified on platforms like Twitter, Becker argues that truly successful businesses are rarely solo ventures. Iconic leaders like Steve Jobs, Bill Gates, and Jen-Hsun Huang all built and relied on strong teams to achieve their visions.
Resource Allocation: Core Areas vs. Outsourcing
Becker advocates for stacking resources around core business areas while outsourcing non-critical functions. For example, in building a media company, his approach included:
- Editorial Team
- Conferencing Team
- Key Account Management Team
- Sales Team
Non-core roles, such as reception, were outsourced, allowing the company to focus resources on critical functions.
“Stack all your resources around building core teams.”
— Scott Becker [12:30]
This strategy aligns with Jim Collins’ "Good to Great" philosophy, emphasizing the importance of placing the right people in pivotal roles.
The Evolution of a Founder and Scaling the Team
Becker outlines the progressive stages of a founder’s journey:
- Stage One: The founder handles nearly every aspect of the business.
- Stage Two: The founder begins hiring, though often the new hires are merely filling positions without significantly enhancing capabilities.
- Stage Three: The founder assembles a leadership team that can operate independently and excel beyond the founder’s individual contributions.
He shares a personal anecdote about recognizing that his partner, a CEO, could outperform him, illustrating the necessity of delegating to capable leaders to scale the business effectively.
“You can’t, you just can’t do it [as effectively as your leader].”
— Scott Becker [16:45]
Hiring Insights: Judging Potential Without Prejudice
Becker advises against overly prejudging potential employees. He highlights the unpredictability of identifying star performers, noting that candidates perceived as average can sometimes become indispensable leaders.
“You can't overly prejudge people.”
— Scott Becker [18:20]
He emphasizes the importance of giving all candidates a fair chance, as valuable talent can emerge from unexpected places.
The Challenge of Scaling Small Businesses
Addressing the misconception that small businesses are akin to startups, Becker notes that a certain enterprise size is necessary to effectively build and sustain larger teams. He recounts a conversation where a job seeker preferred big companies, to which he responded candidly about the realities of his startup’s structure.
This point underlines that effective team building often requires reaching a scale where structured hiring and resource allocation become feasible.
Retaining Key Team Members and "Ride or Die" People
Becker underscores the importance of retaining indispensable team members, whom he refers to as "ride or die" people. These individuals are crucial for the business's continuity and success. His strategy includes:
- Taking care of key people
- Ensuring they feel valued and recognized as top contributors
He cites his success in retaining partners in his legal practice over 20-plus years as a testament to this approach.
“The number one job is to take care of those people, embrace those people and not to lose them.”
— Scott Becker [22:10]
He also gives a shout-out to Judy Faulkner of Epic, praising her exceptional team-building efforts.
Conclusion and Final Thoughts
In wrapping up, Scott Becker reiterates the paramount importance of continually doubling down on team building. He emphasizes that strong, well-structured teams are the backbone of any thriving business, transcending individual efforts and enabling sustained growth and success.
“Keep doubling down on teams, keep building teams. It's everything to business.”
— Scott Becker [24:50]
Becker’s comprehensive exploration of team building offers invaluable insights for entrepreneurs, business leaders, and anyone interested in fostering effective and resilient teams within their organizations.
Thank you for listening to the Becker Private Equity and Business Podcast.