Startups, Progressive Governance and How to Apply the Gas and Brakes During Growth
Author: Ben Behrouzi

Startups and startup executives all over Silicon Valley
intensely debate around how, when and how much governance
startups should apply to their operations when considering
the challenges facing them at the moment and the challenges
that lie ahead. These sometimes grueling discussions take
place at executive meetings, board meetings and manager
meetings when a startup moves form one phase of growth to
another. The inflection points between each phase of
growth manifest challenges and hurdles that begin to
frustrate managers as they operate. It is important to
note that these challenges and frustrations are supremely
important and management's actions around them are
critical, as the decisions made will either suffocate or
propel the business. I refer to the proper management of
these growing pains as progressive governance.

As with anything else, a company is a progressively
evolving entity that passes through different phases in the
course of its evolution. However in a startup everything
is and must be accelerated in order to gain the critical
mass and stability necessary for sustained growth and
development.

Imagine the difference between the way a jet's mechanics
are situated during its take off and climb versus once its
reaches cruising altitude. You cannot govern the jet or
the business with methods that belong to a different phase
of its evolution, else neither the jet nor the business
will take flight.

Too often startups make the mistake of applying too much
brakes and governance to alleviate the growing pains and
challenges they face. Managers instill too many protocols,
policies, procedures that weigh down a business during a
time where speed and agility are everything. It is
supremely important for managers to detect the problems and
apply the exact amount of governance necessary without
comprising the climb of the business.

Managers with little experience with startups, and boards
with traditional seat holders tend to want to drive a
business to have the same governance they have experienced
at companies at much further positions in the course of
maturation. Too often startups fail because they have
busied themselves in making everything run smoothly during
a phase where growth and product development are
everything. What is often overlooked is the fact that
there is no point in having a smoothly operating operation
that has no revenues or growth trajectory.

Clearly there is a certain amount of governance that needs
to be put in place before a business steps on the
accelerator, but the growing pains made present as a
company moves from one phase of development to another must
be met with a progressive governance application that takes
into account what is most important and maintain intense
focus on the ball.

Managers in startups have to learn to walk the line of too
much and too little governance to keep the business moving
forward while mitigating the occurrences of inefficiencies
and incidents but to a degree where the business still
maintains climb.


About the Author:

Ben Behrouzi has over 12 years in building and managing
startups, building management teams, developing core
technology infrastructure and leading product design and
architecture.
http://www.dotnextinc.com
http://www.leapfish.com