Rapid growth—or rapid decline—can shake even the most confident companies. In younger organizations, it often leads to mixed messages, rushed decisions, and a general sense of “too much happening at once.”
Leaders don’t just need to keep the wheels on the bus. They need to keep the team aligned, protect the business, and still leave room for innovation.
Three Helpful Lenses
1. The Entrepreneur’s Dilemma
Entrepreneurs constantly juggle two tough tradeoffs:
- Spend now or conserve cash?
- Chase growth or protect profitability?
You usually can’t prioritize both, and that tension creates pressure.
2. The Innovator’s Dilemma
Christensen’s classic idea: big companies lose ground because they keep improving high-end products, while smaller players quietly improve the low-end until—suddenly—they’re competitive. It raises a practical question: do you push the cutting edge, or deliver a simpler version that wins on cost and speed?
3. The Investor View: “RIP Good Times”
Sequoia’s 2008 memo was blunt: reduce risk, cut unnecessary spending, move quickly, and don’t assume growth will save you. The takeaway for today: speed and clarity matter. In uncertain environments, hesitation is expensive.
What Leaders Can Do Right Now
1. Make finance a true partner
Your finance team shouldn’t just report what happened—they should help forecast what’s coming, highlight risks, and support decisions.
2. Look ahead, not just backward
Companies need a shared sense of direction. Forward-looking data—not just last quarter’s results—should guide decisions.
3. Strengthen processes before buying more tools
Great software won’t fix unclear processes. Build the foundation first, then make sure your systems can scale with you.
4. Treat planning as a cycle, not an annual event
Plans should be updated often and communicated quickly. Short, frequent planning beats long, rigid plans every time.
5. Be honest about what the numbers actually say
Avoid building plans around the rosiest assumptions. Make decisions based on reality, even when it’s inconvenient.
6. Build teams you trust—and let them work
The right people make everything easier. Hire well, delegate, and avoid the trap of micromanaging.
7. Protect cash
Cash gives you options. Keep it top of mind, plan for multiple scenarios, and reduce unnecessary risk where you can.
What High-Performing Companies Have in Common
Top companies tend to be really good at a few things:
- They focus the team around a clear direction
- They communicate quickly and often
- Their systems and processes scale
- Their decisions are grounded in insight, not wishful thinking
- They hire talented people and give them space to deliver
Jeff Osorio is a Consulting CFO with over 30 years of experience in operationally oriented companies ranging from pre-Revenue to $4B with over 40 ERP implementations in his portfolio. He is also an Adjunct Professor in the MBA program of the Leavey School of Business at Santa Clara University.
FOOTNOTES
1 The Entrepreneurial Dilemma in the Life Cycle of the Small Firm: How the firm and the entrepreneur change during the life cycle of the firm, or how they should change”Enno Masurel Vrije Universiteit Amsterdam, The Netherlands
2 The Innovators Dilemma” © 1997 Clayton Christensen
4 “You’re Not Tiger Woods” by Tony Frisca
5 David AJ Axson, “Collecting More Data But Gaining Less Insight” Financial Executive, vol. 14, no. 3, May-June 1998, pp. 16+. Gale Academic OneFile, link.gale.com/apps/doc/A20929784/AONE?u=anon~f92c2cbc&sid=googleScholar&xid=cb530cf4
6 “If You’re the Smartest Guy at the Table, You’re in Trouble” Presentation by Marthin De Beer, SVP Emerging Technologies, Cisco Systems