Leading Change In Small Businesses

Scaling from 50 to 100 employees almost killed our company. Until we discovered a simple org structure that unlocked $100M+ in annual revenue. In my 10+ years of experience as a founder, one of the biggest challenges I faced in scaling was bridging the organizational gap between startup and enterprise. We hit that wall at around 100~ employees. What worked beautifully with a small team suddenly became our biggest obstacle to growth. The problem was our functional org structure: Engineers reporting to engineering, product to product, business to business. This created a complex dependency web: • Planning took weeks • No clear ownership  • Business threw Jira tickets over the fence and prayed for them to get completed • Engineers didn’t understand priorities and worked on problems that didn’t align with customer needs That was when I studied Amazon's Single-Threaded Owner (STO) model, in which dedicated GMs run independent business units with their own cross-functional teams and manage P&L It looked great for Amazon's scale but felt impossible for growing companies like ours. These 2 critical barriers made it impractical for our scale: 1. Engineering Squad Requirements: True STO demands complete engineering teams (including managers) reporting to a single owner. At our size, we couldn't justify full engineering squads for each business unit. To make it work, we would have to quadruple our engineering headcount. 2. P&L Owner Complexity: STO leaders need unicorn-level skills: deep business acumen and P&L management experience. Not only are these leaders rare and expensive, but requiring all these skills in one person would have limited our talent pool and slowed our ability to launch new initiatives. What we needed was a model that captured STO's focus and accountability but worked for our size and growth needs. That's when we created Mission-Aligned Teams (MATs), a hybrid model that changed our execution (for good) Key principles: • Each team owns a specific mission (e.g., improving customer service, optimizing payment flow) • Teams are cross-functional and self-sufficient,  • Leaders can be anyone (engineer, PM, marketer) who's good at execution • People still report functionally for career development • Leaders focus on execution, not people management The results exceeded our highest expectations: New MAT leads launched new products, each generating $5-10M in revenue within a year with under 10 person teams. Planning became streamlined. Ownership became clear. But it's NOT for everyone (like STO wasn’t for us) If you're under 50 people, the overhead probably isn't worth it. If you're Amazon-scale, pure STO might be better. MAT works best in the messy middle: when you're too big for everyone to be in one room but too small for a full enterprise structure. image courtesy of Manu Cornet ------ If you liked this, follow me Henry Shi as I share insights from my journey of building and scaling a  $1B/year business.

In 2021, I proposed an initiative I thought was brilliant—it would help my team make faster progress and better leverage each member's unique skills. Brilliant, right? Yet, it didn’t take off. Many ideas or initiatives fail because we struggle to gain buy-in. The reasons for resistance are many, but Rick Maurer simplifies them into three core categories: (1) "I don’t get it" Resistance here is about lack of understanding or information. People may not fully grasp the reasons behind the change, its benefits, or the implementation plan. This often leaves them feeling confused or unsure about the impact. (2) "I don’t like it" This is rooted in a dislike for the change itself. People might feel it disrupts their comfort zones, poses a negative impact, or clashes with personal values or interests. (3) "I don’t like YOU." This is about the messenger, not the message. Distrust or lack of respect for the person initiating the change can create a barrier. It might stem from past experiences, perceived incompetence, or lack of credibility. When I work with leaders to identify which category resistance falls into, the clarity that follows helps us take targeted, practical steps to overcome it. - To address the "I don't get it" challenge, focus on clear, accessible communication. Share the vision, benefits, and roadmap in a way that resonates. Use stories, real-life examples, or data to make the case relatable and tangible. Give people space to ask questions and clarify concerns—often, understanding alone can build alignment. - To address the "I don't like it" challenge, emphasize empathy. Acknowledge potential impacts on routines, comfort zones, or values, and seek input on adjustments that could reduce disruption. If possible, give people a sense of control over aspects of the change; this builds buy-in by involving them directly in shaping the solution. - And to address the "I don't like you" challenge, solving for the other two challenges will help. You can also openly address past issues, if relevant, and demonstrate genuine commitment to transparency and collaboration Effective change isn’t just about the idea—it’s about knowing how to bring people along with you. #change #ideas #initiatives #collaboration #innovation #movingForward #progress #humanBehavior

In today’s fast-paced business environment, change is inevitable. Whether it’s implementing new technology, restructuring teams, or shifting company policies, change management is crucial for maintaining productivity and employee morale. However, one common mistake organizations make is trying to surprise employees with changes, hoping to catch them off guard and avoid resistance. Why Surprising Employees Doesn’t Work    1.   Lack of Trust: When employees are not informed about upcoming changes, they may feel that their input is not valued. This can erode trust between management and staff, making future changes even more challenging.    2.   Resistance to Change: People generally resist change when it is imposed without explanation or input. This resistance can manifest as decreased motivation, lower productivity, or even turnover.    3.   Confusion and Misinformation: Without clear communication, rumors and misinformation can spread quickly. This can lead to unnecessary anxiety and stress among employees. The Importance of Effective Communication Effective communication is the cornerstone of successful change management. Here are some reasons why it’s essential to communicate changes clearly and transparently:    1.   Builds Trust: Open communication helps build trust by showing that employees’ perspectives are valued. When employees feel included in the process, they are more likely to support the change.    2.   Reduces Anxiety: Clear explanations of what changes are happening and why can alleviate anxiety and uncertainty. Employees are better prepared to adapt when they understand the reasons behind the changes.    3.   Encourages Participation: Communicating changes early allows employees to provide feedback and suggestions. This not only improves the change process but also fosters a sense of ownership among team members.    4.   Improves Adaptation: When employees are well-informed, they can start preparing for the changes ahead of time. How to Communicate Changes Effectively    •   Early Notification: Inform employees about upcoming changes as soon as possible. This gives them time to process the information and prepare.    •   Clear Explanations: Provide clear reasons for the changes and how they will affect employees. Use simple language to avoid confusion.    •   Open Dialogue: Encourage feedback and questions. This helps address concerns promptly and builds trust.    •   Training and Support: Offer training or support to help employees adapt to new processes or technologies.    •   Follow-Up: Check in regularly to see how the changes are impacting employees and make adjustments as needed. In conclusion, change management should never be a surprise. Effective communication is not just a courtesy; it’s a necessity for successful change management. #effectivecommunication

Sustainability for SMEs 🌎 Sustainability is increasingly relevant for SMEs—not as an external add-on, but as a framework for managing risks, improving resilience, and accessing new markets. The key is to align actions with business relevance rather than abstract trends. A materiality-based approach helps focus resources on a limited set of issues with direct operational or reputational implications. Priorities vary by sector—examples include energy and waste in manufacturing, packaging and nutrition in food sectors, or data privacy in tech. Strategic integration is more effective than isolated initiatives. Existing operational routines, KPIs, and community efforts often provide a foundation for embedding sustainability without duplicating structures or increasing overhead. Business value should guide action. Low-barrier measures such as improving workplace conditions, upgrading equipment, or mapping key suppliers for ESG risks often show returns in cost reduction, risk mitigation, and employee retention. Metrics should inform decisions, not just reporting. A focused set of indicators—energy savings, supplier sourcing mix, or compliance issue closure rates—can support ongoing performance management and prioritization. Sustainability also enables access. Demonstrating credible performance can support eligibility for procurement opportunities, unlock client segments with ESG expectations, and improve employer branding in competitive labor markets. For SMEs, adaptability is essential. Starting with pilots, scaling what works, and refining the roadmap regularly allows for progress without unnecessary complexity. The objective is strategic alignment, not programmatic perfection. #sustainability #sustainable #business #esg

Nothing hurts Procurement more than spiralling costs. This document shows the surging cost of software in 2025. Here's some red flags when it comes to Software as a service (Saas) contracts and what to do about it: ➡️ Auto-renewals. Negotiate for... ↳ A minimum 60-90 day written renewal notice ↳ The right to opt out or renegotiate at renewal ↳ Removal of the clause outright ☝ Prevents lock-in at inflated rates & gives you leverage at renewal ➡️ Unclear data ownership. Ensure... ↳ Explicit statement my organisation owns its data ↳ The right to export data any time, in a usable format ↳ Data destruction & sanitisation confirmation post termination ☝ Protects your IP & ensures business continuity in vendor exits. It's your data, you SHOULD own it. ➡️ True up & true down restrictions. Enable... ↳ Flexible licence adjustments without penalties ↳ No minimum user thresholds or excessive step-ups ↳ Prorated pricing for partial terms & usage ☝ Keeps your Saas aligned with actual business needs, vital in today's volatile environment. ➡️ Unreasonable yearly increases. Negotiate... ↳ Fixed pricing over the contract term ↳ A cap on any annual uplifts (pegged to CPI to keep it fair) ↳ Discounts for multi-year commitments or upfront payments ☝ Keeps your long-term costs predictable and avoids budget surprises ➡️ Uncompetitive pricing. Ensure... ↳ The right to benchmark pricing against market standards annually ↳ Most Favoured Nation (MFN) clauses, ensuring you get terms no less favourable than any comparable client ☝️Keeps your rates favourable and competitive over time ➡️ Misaligned costs versus actual use. Insist on... ↳ Clear, unambiguous definitions of billable units ↳ Grace thresholds or tolerance limits before additional fees kick in ↳ Favourable true-up terms (e.g. annual reconciliation vs monthly) ☝ Stops vendors penalising you unfairly for growth. ➡️ Unclear exit & transition clauses Build in... ↳ Vendor obligation to assist in data migration (at reasonable rates) ↳ Continued access to data for a set period post-termination (e.g. 90 days) ↳ Clear documentation detailing handover obligations ☝ Ensures a clean, controlled exit & mitigates vendor lock-in ➡️ Permanent tie in Request... ↳ A termination for convenience clause with a 30-90 day notice ↳ Pro-rata refunds for prepaid but unused services ☝ Gives you agility to pivot if business priorities change. Why should Saas treated any differently to anything else you buy? Any others to add? _______ P.S. want to know the true cost of Saas inflation to your business in 2025? Need something to convince your IT stakeholders? I've got a must read FREE 🎁 to download Saas inflation report here 👇 https://lnkd.in/eiJh_zQm Saas vendors will hate me for sharing this. Repost if you found this helpful ♻️

You don't have to be in a formal leadership position to influence change and improvement. Influence comes from building a shared purpose and anyone can do this! Let's say you’ve spotted a way to make things better, faster, or smoother at work. You know this change could really help, but when you bring it up, the team pushes back or doesn’t seem interested. ⚠️ It’s easy to get frustrated or try harder to win people over. But pushing hard usually backfires. ❗ So instead, shift your focus to shared purpose and cooperation. 👉Let’s take a common example: the weekly team meeting. 👉The problem: you see issues with meetings- they run over, lack focus, and don’t result in clear outcomes. Here's a suggested response to influence improvement... 1️⃣ Ask Questions That Spark Reflection Get your team to reflect on the current meeting process by asking: ❓ “How do you feel about our weekly meetings — are they a good use of our time?” ❓ “What parts of our meetings feel most productive, and what parts feel like a time drain?” ❓ “Do we always leave meetings knowing who’s doing what?” (This will get people thinking...) 2️⃣ Highlight shared goals. Link your idea to something the whole team values: ❓ “I know we all want to have more time for focused work. What if we could cut our meeting time in half and still get everything done?” (Now, the focus isn’t on your idea — it’s on solving a shared problem) 3️⃣ Invite Ideas and Feedback Rather than presenting a fixed solution, co-create it: ❓ "I've made a suggestion but that's just one option- what ideas do you have?” (When the team helps shape the solution, they’re more invested in making it work) 4️⃣ Start Small and Test Together Propose trying a small, low-risk change, taking into account all suggestions: ❓ “How about next week, we try a 30-minute meeting with a strict agenda and clear action points documented? We can see how it feels, adjust if needed, and then try out other ideas?" (Small tests reduce the fear of change and show that you value collaboration) 5️⃣ Celebrate Progress as a Team If the new approach works, recognize the team effort: ❗ “Our meeting was only 30 minutes, and we still got through everything! ❗ “It’s great to see us using our time more effectively. Let’s keep this going.” You could apply these 5 steps to influencing any kind of change or improvement....oh and don't forget to be prepared, use data and work on those communication skills! What do you think? Could you try this to help build your #influence skills? Do you have any tips from your own experience? Leave your comments below 🙏

I Lost 10 Clients by Treating Them Like Transactions. Four months ago, I had a realization: Our approach to clients needed a serious change. We were treating each project as a transaction. Get the job done, get paid, and move on. But deep down, I knew this wasn't sustainable. Clients aren’t just projects to complete and forget about. So, I sat down with my team and decided to dig deep: Where were we going wrong? What was missing? Turns out, a lot. We weren’t building relationships. If we wanted clients to come back to us without even asking… We had to stop seeing them as one-off deals. So we changed everything. We focused on understanding each client’s long-term goals. We personalized our communication, not just templates. We checked in even when there wasn’t a project on the line. We went beyond delivery we became their partner. It wasn’t easy at first. We didn’t see the results in a week or even a month. But slowly… Clients started returning. Referrals started flowing in. Loyalty built itself without much effort. Trust deepened. And then it clicked. The more we cared, the more our clients did too. It took 90 days to see a complete shift From quick projects to long-term partnerships, From one-time payments to recurring revenue, From chasing clients to having them knock on our door. This is a reminder: Every client is a relationship. When you treat them well, they’ll come back, again and again. Not because you asked them to, but because they want to. If you're stuck in a transactional mindset, it’s time to rethink. It’s not just about the work; it’s about the relationship behind the work. P.S. Social media makes it look easy, but building client loyalty takes time, effort, and a lot of genuine care. The return isn’t immediate, but it’s always worth it. How are you building relationships with your clients these days? #relationship #marketing #facebook #facebookadsexpert #funnelexpert #leadgenerationexpert

It is an honour to have the impact of my research recognised in the 2024 Business Research awards at Durham University Business School 😀 My recent focus has been on the limitations to prescriptive linear approaches that do not reflect the complexity and multiplicity of most transformation initiatives. In contrast to a linear approach, through empirical research I have developed a Business Transformation Framework for a people-centric approach to change. The framework is built on the key concepts outlined in my latest book on 'People-Centric Organizational Change' and as an iterative cycle it is appropriate for ensuring agility and adaptability, since each element of the framework constantly informs the orientation of previous and subsequent phases. The framework is supported with eight key principles which comprise: Build Engagement; Foster Collaboration; Encourage Dialogue; Promote reflection and Inquiry; Stimulate Innovation; Enhance Wellbeing; Develop Managers; and Build Transformation Capabilities. There are several factors which need to be considered when applying the framework and the supporting principles in practice including the following. - Foster a culture that embraces people-centric change This takes time and the message needs to be constantly reiterated in person by leaders and managers role modelling the behaviours that they want their workforce to demonstrate by adopting a ‘do as I do’ way of behaving and working. - Implement training and development practices Training and development practices can help to change behavioural elements of the culture. To ensure new behaviours stick training and development interventions need to be followed-up with ongoing support and coaching. It is also important to recognize when the new behaviours are being enacted and provide subsequent positive feedback to individuals. Observing people doing things right and rewarding their positive behaviours is important. - Adapt the Business Transformation Framework to local contexts and provide opportunities for applying it and learning from the application Ensure that people at all levels have the opportunity to become familiar with using and adapting the Business Transformation Framework, as appropriate, with the support from managers as well as development interventions such as training and coaching.   Kogan Page HR Insights Emma Dodworth CIPD #Peoplecentricchange #peopleandchange #businesstransformations #leadingchange #researchimpact

How to Lead Your Organization in the Age of AI You’ve probably heard the term “digital transformation” a hundred times. But what does it really mean? And how can companies ensure they stay competitive in the AI era? This concept, inspired by insights from Harvard Business Review, highlights how fostering a digital mindset is key to thriving in the age of AI. What Is a Digital Mindset? A digital mindset is more than just understanding technology. It’s about: ➤ Adopting attitudes and behaviors that see AI as a tool for innovation and new possibilities. ➤ Transforming workflows to unlock value, not just relying on tools, but using them as a strategic advantage. Employees fall into four categories when it comes to adopting new technology: 1️⃣ Digital Leaders: Highly skilled and enthusiastic adopters who drive innovation. 2️⃣ Digital Champions: Quick learners who are ready to use AI but need some guidance. 3️⃣ Digital Skeptics: Reluctant users who need training and reassurance about the value of AI. 4️⃣ Digital Laggards: Resistant to change and struggle to see the benefits of new technology. Your goal as a leader? Move as many people as possible into the leader and champion categories. How to Foster a Digital Mindset: Key Steps for Leaders 1️⃣ Foster a Culture of Continuous Learning: Encourage curiosity and provide ongoing training programs. Employees must feel supported to experiment with AI tools in their work. 2️⃣ Normalize Change and Shifting Norms: Celebrate small wins, reward experimentation, and make it safe for employees to fail and learn. 3️⃣ Invest in Employee Training Programs: A successful training program focuses on three elements: ➤Relevance: Align training with specific roles and industry needs. ➤Accessibility: Make training easily available through online modules or hands-on workshops. ➤Measurable Outcomes: Set clear goals and track progress to demonstrate value. Ready to lead your organization into the future? ♻️ Share this post with your team to start the conversation. 👋 Follow me, Hetali Mehta, MPH for actionable insights on AI, leadership, and innovation.

❓ The technology may be able to help you transform, but how do you assess if the company has the internal capability to support the transformation?   Question received during the webinar "Experience GROW with SAP" (recording 👉 https://lnkd.in/gv-KWHKy) The successful implementation of transformation requires an understanding of an organization’s readiness to change. Identifying and evaluating the factors that affect an organization’s ability to adapt to new processes, technology & workflows. ☝ If you are asking this question - you are already on a right track. Majority of change initiatives fail, because we fail to do a first step - assess, if the ambition and organizations CAPABILITY and CAPACITY to support the transformation is there. ** Capability can be built, borrowed or bought. But more important, has organization capacity to do this on top of business as usual? ** Capacity means all leaders, employees and stakeholders are giving priority, focus and attention to transformation. Coming back to the initial question about assessing capabilities and readiness for change 👇 I, personally, like the ** Business Transformation Management Methodology ** (BTM2), which offers a comprehensive framework to address various facets of business transformation, including assessing a company's internal capability to support transformation efforts. According to BTM2, evaluating a company's readiness and capability for transformation involves multiple dimensions, such as organizational structure, culture, employee skills, technological infrastructure, and existing processes. More about this methodology by Rob Llewellyn here >> https://lnkd.in/gKEzbPyp Top 7 capabilities: 1️⃣ Strategic Visioning and Alignment: Are you able to define a clear and simple "Case for change"? The "Why". Defining a compelling transformation vision aligned with business strategy and ensuring stakeholder commitment is essencial. If people don't understand the why - stop here. 2️⃣ Leadership and Governance: Does everyone understand that to run the Transformation you need a proper governance structures, strong leadership who can inspire teams through change. 3️⃣ Change Management: Managing organizational change effectively, addressing resistance, and fostering adaptability needs focus. Are you ready? 4️⃣ Risk Management: How good is organization to understanding and managing risks? 5️⃣ Process Management: You will need End-to-End process definition and management. Do you run your business in functions or you talk processes? 6️⃣ Technology Management: How strong is your Technology team? You need a leader who can build bridge between Business & Technology. 7️⃣ Talent and Competency: Ensure your core team has experience to handle changes. Best is to hire someone who already went the same way at least once. Don't try to learn from your mistakes. How would you assess readiness? #sappartner #BTM2 #transformation