First Principles In Times Of Hyper Growth

Photo by Markus Spiske on Unsplash

There’s an adrenaline rush, a state of heightened performance, that comes with growth, when things are going well. It’s a positive state because it’s a sign that others value what we’re doing and, by definition, in increasing numbers. 

All of us want that kind of growth for our enterprises (and ourselves) because it is a sign that things are working. That kind of growth motivates the organization and pushes us to believe, commit ourselves and achieve more. All good things. 

When growth accelerates disproportionately - that is, when it becomes hyper growth, that feels like it should be even better. After all, more growth means more money, and more money means we can do more, invest more, hire faster, and ultimately, deliver on our mission that much more quickly. And we can, but only if we’re thoughtful about it. 

Because growth at that level brings with it real risk. The risk is that we lose our grounding, our focus on our core and we begin making decisions that are suboptimal. The risk is that we chase that hypergrowth even harder, as opposed to ensuring that our foundations are solid as we grow. The risk that we lose ourselves as entities, organizations and individuals, in its pursuit. 

Because growth at that level runs the real risk of not simply sharpening our senses but intoxicating us. Which is when we lose sight of the fundamentals.

We value the top line above all else, in pursuit of that next double and triple digit percentage hit.

We loosen standards as we increase our ability to produce, often sacrificing quality for quantity.

We loosen controls, especially over key costs, justifying with the rationale that we have to spend money to make money.

We lose sight of our culture, of bringing our people along.

Of course, none of this happens all at once. It builds over time, in a series of small, almost unnoticeable moral compromises. Because the thought of “managed” growth and consolidating our position is met with derision and perceived as failure. 

And so we make one off-center decision followed by another, comforting ourselves in the notion that we’re still able to manage and keep everything on track. And we make another, then another, until we can’t - forced either by internal problems, or external ones. Gradually, then suddenly.

It’s hard to do, but in times like these, it’s worth remembering first principles. 

Understand and reinforce your strategy (which cannot be “making money”). 

Focus on your people and your culture. 

Understand what you are and are not willing to trade off in pursuit of growth. 

Value profitability and cash flow. 

First principles are the foundation and they should govern what you do and how you behave - especially when we’re growing and doing well.

First principles matter.