Podcast Title: Build with Leila Hormozi
Host/Author: Leila Hormozi
Episode: How to Keep Up When the Business Outgrows You | Ep 270
Release Date: May 7, 2025
Overview
In Episode 270 of Build with Leila Hormozi, Leila delves deep into the inevitable growth phases that businesses and their leaders undergo. Titled "How to Keep Up When the Business Outgrows You," this episode provides invaluable insights into navigating the complex transitions from individual contributor to managerial and executive roles. Leila emphasizes the often-overlooked concept that businesses promote their leaders organically as they scale, rather than waiting for formal promotions. This episode is a must-listen for founders, CEOs, and business leaders aiming to build resilient and scalable enterprises.
Key Sections
1. Understanding Growth and Unseen Promotions
Leila begins by challenging the traditional notion of promotions within a company. She asserts that growth often results in automatic promotions driven by the business's expanding needs rather than formal recognitions.
Leila: "The company promotes you whether you know it or not. If you're not paying attention, you might wake up one day feeling unqualified for your role."
(00:02)
She highlights that as businesses grow, roles evolve, necessitating a shift from execution to delegation and strategic thinking.
2. The Founder’s Evolution
Leila discusses the transformation founders undergo as their companies scale. Initially handling multiple functions like marketing, copywriting, and ad management, founders must transition to setting visions, directing teams, and managing metrics.
Leila: "If your calendar is not changing quarter over quarter, you're not keeping up with the business or pushing it forward."
(12:45)
She underscores the importance of founders adapting their roles to avoid stagnation and ensure continued growth.
3. Common Pitfalls in Leadership Transitions
One of the significant challenges Leila identifies is leaders resisting change, often clinging to tasks familiar from smaller operations. This resistance can lead to inefficiency and business stagnation.
Leila: "Most people screw it up because they think they can remain the same person with the same habits and routines and somehow crush it in a completely different role."
(25:30)
She shares personal anecdotes about leaders struggling to manage larger teams and the detrimental effects on business morale and culture.
4. From Individual Contributor to Manager
Leila outlines the progression from being an individual contributor to taking on managerial responsibilities. She explains that success at this level hinges on the ability to coordinate, train, and track team performance rather than just personal output.
Leila: "As a manager, you're responsible for the output of others doing things faster, better, cheaper."
(30:10)
5. Advancing to Director and C-Level Roles
The conversation progresses to higher leadership levels, emphasizing cross-functional leadership, strategic planning, and resource allocation. Leila stresses that C-level executives must understand the entire business and make decisions that benefit the company as a whole.
Leila: "Every decision you make at the C level moves a million dollars and dozens of people."
(50:55)
She advises leaders to develop a broader perspective, focusing on long-term strategy rather than day-to-day operations.
6. Strategies to Adapt and Thrive
Leila offers actionable strategies for leaders to keep up with their evolving roles:
-
Continuous Self-Assessment: Regularly evaluate your role and contributions to ensure alignment with the company's needs.
Leila: "Ask yourself, what is the highest value thing you can do for the company based on its size and stage?"
(1:05:20) -
Calendar Audits: Scrutinize your schedule to eliminate low-impact activities and prioritize high-value tasks.
Leila: "Audit your calendar against your level. Are you solving million-dollar problems or individual contributor tasks?"
(1:10:45) -
Willingness to Let Go: Embrace the necessity of subtraction over addition by delegating tasks and relinquishing control over certain decisions.
Leila: "Growth means subtraction, not addition. You have to let go of old tasks to step into new roles."
(1:20:10)
7. Building a Support System
Leila emphasizes the importance of seeking external support, such as mentors or partners, to navigate leadership challenges effectively.
Leila: "There's no shame in saying that you need help to get your business to the next level."
(1:15:30)
She shares her experience of bringing in high-caliber individuals to support her growth ambitions for Acquisition.com.
8. Maintaining Leadership Integrity
The episode concludes with a focus on maintaining integrity and setting an example as a leader. Leila discusses the heightened scrutiny placed on C-level executives and the importance of embodying the company culture.
Leila: "You are held to a very high standard of how you conduct yourself personally and professionally."
(1:30:05)
She encourages leaders to be inspirations for their teams, fostering environments where strategic decisions benefit the entire organization.
Notable Quotes
-
On Implicit Promotions:
"The company promotes you whether you know it or not. If you're not paying attention, you might wake up one day feeling unqualified for your role."
(00:02) -
On Calendar Management:
"Audit your calendar against your level. Are you solving million-dollar problems or individual contributor tasks?"
(1:10:45) -
On Leadership Integrity:
"You are held to a very high standard of how you conduct yourself personally and professionally."
(1:30:05) -
On Letting Go for Growth:
"Growth means subtraction, not addition. You have to let go of old tasks to step into new roles."
(1:20:10)
Insights and Conclusions
Leila Hormozi provides a comprehensive framework for understanding and navigating the complex evolution of business roles as companies scale. The primary takeaway is that growth is not just about expanding operations but also about evolving leadership capabilities. Leaders must be proactive in redefining their roles, continuously adapting their skills, and making strategic decisions that align with the company's growth trajectory.
Key Points:
- Invisible Promotions: Businesses naturally elevate leaders as they grow, requiring constant adaptation.
- Role Evolution: Founders and leaders must transition from hands-on tasks to strategic oversight.
- Common Challenges: Resistance to change and inability to manage larger teams can hinder growth.
- Actionable Strategies: Regular self-assessment, calendar audits, delegation, and seeking external support are crucial.
- Leadership Integrity: Maintaining high standards and being an inspirational figure are essential at the executive level.
Leila's practical advice, backed by personal experiences and real-world examples, provides listeners with the tools needed to ensure they and their businesses continue to thrive amidst growth.
Final Thoughts
"How to Keep Up When the Business Outgrows You" serves as a vital guide for anyone looking to build an unshakeable business. Leila Hormozi's insights into leadership transitions offer a roadmap for sustaining growth and fostering a resilient organizational culture. By embracing change, prioritizing high-impact activities, and setting a strong example, leaders can effectively navigate the complexities of scaling their businesses.
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