What Success Changes

As an organisation succeeds, its leaders make larger decisions, allocate more resources and exercise greater influence. They also need stronger systems and people who can still speak plainly.

Daniel Chua

As an organisation succeeds, its leaders make larger decisions, allocate more resources and exercise greater influence. They also need stronger systems and people who can still speak plainly.

Success creates capacity.

A profitable company can invest in better products, stronger systems, new markets and more capable people. A growing church or ministry can develop leaders, serve more people and establish work that was not possible at the beginning.

These are good outcomes.

Success gives leaders more to work with. It also increases the consequences of the decisions they make.

As the organisation grows, more people depend on its judgement. Capital commitments become larger. Opportunities increase. People respond differently to those in authority. Informal ways of working begin to reach their limits.

The organisation has changed.

The way it is led must change with it.

Larger Decisions Affect More People

In a small organisation, a poor decision may be painful but recoverable.

At greater scale, the same kind of decision can affect hundreds or thousands of people.

Hiring the wrong person into a team of ten is one thing. Appointing the wrong chief executive is another.

A small investment may be corrected quickly. A major acquisition can commit years of capital and management attention.

A founder may once have made most important decisions from experience and instinct. As the organisation grows, some decisions require financial, legal, operational and governing judgement beyond one person’s experience.

That is one reason successful organisations need stronger decision processes.

The leader does not become less important. The decision becomes larger than one person should carry alone.

A board may need better information.

Management may need stronger analysis.

External advisers may need to test the assumptions behind a transaction.

People responsible for execution should be heard before a commitment is made.

The larger the consequence, the more important it becomes to know who decides, what information is required and what risks have been considered.

Success increases the value of good judgement because more people live with the result.

More Money Creates More Choices

Scarcity makes some decisions easy.

There is simply not enough money.

A young company may be unable to pursue several good opportunities at once. A ministry may have to choose between two worthwhile initiatives because it cannot fund both.

Success changes that constraint.

A profitable company may be able to open another office, acquire a competitor, hire a stronger team, launch a new product and invest in technology at the same time.

A growing ministry may have the resources to expand programmes, add staff, buy property or support new work.

More becomes possible.

That makes capital allocation more important.

The question is no longer only whether the organisation can afford something.

It must decide what deserves the money.

A business should know which investments strengthen its purpose, economics and long-term capability.

A ministry should know which commitments genuinely advance its work and which simply add activity.

The same discipline applies personally.

Success may increase a leader’s income, wealth and access to opportunities. That can support generosity, investment, family provision and many good things.

It can also increase consumption without much thought.

Money expands choice.

Wise leaders decide what money is for before every available option begins competing for it.

Keep People Close Who Can Speak Plainly

Success changes the way people respond to authority.

A founder with a strong record carries more influence than the founder who has yet to prove anything.

A chief executive controls resources, opportunities and careers.

A senior pastor may carry significant influence over staff, members and other leaders.

People notice this.

They may become more careful when they disagree.

A weak idea may receive more enthusiasm than it once would have.

A preference may become a priority before the leader intended it to.

A concern may be softened until the point is difficult to recognise.

The leader may interpret this as increasing alignment.

Sometimes it is simply increasing caution around power.

Successful leaders therefore need relationships where people can still speak plainly.

Boards need directors willing to challenge the chief executive’s reasoning.

Founders need executives who can disagree without fearing that the relationship has changed.

Pastors need people who can speak honestly about decisions, character and family.

Leaders also need friends who knew them before the title or platform became impressive.

Past success should increase confidence where confidence is deserved.

It should not make correction harder to hear.

A leader may have exceptional judgement in one field and weaker judgement in another. A founder who built a successful company is not automatically a good investor in every industry. A pastor who led a growing church may still need correction in governance, people decisions or family life.

Success provides evidence of capability.

It does not remove the need for counsel.

More Opportunities Compete for Attention

Success attracts opportunities.

People bring partnerships, investments, invitations, causes, introductions and ideas.

Many of them are good.

The difficulty is that every new commitment consumes something.

Time.

Capital.

Management attention.

Reputation.

Organisational focus.

A company may be able to enter a new market, but doing so will require senior leaders to spend less time elsewhere.

A founder may be invited into another investment, board or initiative, but those commitments reduce the time available for the enterprise already under his care.

A ministry may be able to launch another programme, but staff and volunteers still have finite attention.

Every yes creates a trade-off.

Leaders therefore need clear reasons for accepting or declining an opportunity.

Does it fit what the organisation is trying to accomplish?

Do we have the people to do it well?

What will receive less attention if we proceed?

What capital will be committed?

What new risks will the organisation carry?

Success creates the privilege of choosing among more good options.

Good judgement determines which of them deserve a yes.

A Larger Organisation Needs Different Structures

The practices that work in a small organisation do not always work at scale.

Twelve people can communicate informally.

Five hundred people across several locations cannot depend on the same conversations.

A founder can know every employee in the early years.

A large organisation needs other capable leaders who can make decisions, develop people and carry responsibility.

A pastor may personally know most members of a small congregation.

A larger church needs pastors and leaders who can genuinely care for people and exercise authority within clear roles.

Growth increases the need for structure because responsibility is distributed across more people.

Decision rights become more important.

Management systems become more important.

Financial controls become more important.

Information must reach the people who need it.

Leaders need to know what they own and where authority ends.

The board needs enough visibility to govern without trying to manage the organisation itself.

These changes do not make the organisation less relational.

They make responsible relationships possible at greater scale.

The challenge is to preserve what made the organisation worth growing while changing the practices that belonged only to an earlier size.

A founder’s personal involvement in every decision may once have created speed.

At scale, the same habit creates delay.

An informal ministry structure may once have supported close relationships.

At greater size, the same informality may leave people unclear about responsibility and authority.

Leaders need to distinguish between convictions that should remain and methods that should change.

Success often makes that distinction unavoidable.

Receive Success Well

Success gives leaders and organisations the ability to do more.

A profitable company can employ more people, improve its products, invest for the future and serve more customers.

A growing church or ministry can develop leaders, support new work and serve people in ways that were not possible before.

These are reasons for gratitude.

Then comes responsibility.

Larger decisions need better judgement.

More money needs deliberate allocation.

Greater influence requires people who can still speak honestly.

More opportunities require clearer priorities.

A larger organisation needs structures and leaders capable of carrying its responsibilities.

Success should be enjoyed.

It should also be governed well.

The practices that helped an organisation become successful will not always be enough for what success makes possible next.