Emil Michael, Chairman/CEO of DPCM Capital Inc.
getty
When I come to a company, I think of four things: the leadership, the viability as a company, my interest in the industry and whether I can learn from it.
I was part of a brand that wanted to be global from day one, and it was an exciting experience. With such far-reaching ambitions, there needs to be an even bigger plan about where, when and how you are going to get there. Hypergrowth is a great thing, but it comes with its complexities and challenges. You also need stability. If you are setting up activities in a new city, it is essential to get basic local support. It’s also crucial to see how people and technology can amplify the long-term vision you have for your brand.
“Blitzscaling” is the latest buzzword for that practice. While it can work wonders, like any other strategy, it must be applied judiciously. Here are three tips to aid in efforts to increase scalability.
1. Define and set expectations.
After becoming part of a large ride-sharing company, some of my expectations have evolved. When setting up a business, it is essential to define your roles and responsibilities and set realistic expectations early on. You want reliable yet flexible partners. You have to take intelligent risks from day one. Chances are there will be some bumps along the way. The journey will be imperfect, and that’s okay. You work hard and over time your role will evolve. You need to have a multi-track plan immediately if you are at the helm of a company that exists partly in the digital space and partly in the physical space. It is vital to continuously assess what is working and what is not so that you can change course if necessary to improve things.
2. Partner ambition with vision.
Many of the companies I’ve worked with have grown rapidly and I can tell you that blitzscaling doesn’t just happen. It is a well-strategized process that requires a certain mindset and a lot of ambition. As your business grows, you never want to lose sight of the innovation you had when you started and be prepared for all the lessons you will learn along the way.
Blitzscaling requires a global mindset and a very specific way of acting. Blitzscaling can arise from developing a global plan. If you want to be in the top 100 cities in the world, you have to analyze the situation. What are the similarities? Can you define the differences? You need to design a playbook and make your next move. Just don’t dive in until you’ve tested the waters.
The other thing to ask yourself is, are there any companies that can complement this? Is there anything I could launch besides this that would improve on what already exists?
Blitzscaling has its limits. You have to remember that when you’re blitzscaling, you don’t expect perfection. This also applies to the application process. If you’re trying to blitzscale, hiring is another critical part of development. Keep your standards high. You want to hire the best people for the job. People can make or break your business. When you’re blitzscaling, you need to consider quality control. You don’t want to move so quickly that your standards drop.
3. Don’t rush the application process.
I recommend that leaders interview team members as long as they are personally capable of doing so. Do not hurry. As a leader of several startups and working with leadership throughout my career, it’s a simple fact that at some point you just won’t have the bandwidth to interview everyone. However, I recommend that all leaders interview everyone on their team as long as it is feasible.
Try to maintain some consistency in the hiring process. Make sure fixed filters are in place. Doing your best to build the best team will save you money and time in the long run. You must devote sufficient time to recruiting. It’s important to spend time recruiting and attracting the best people to work with your brand, because it doesn’t happen overnight. You want to attract people who align with your company’s vision and values and who are invested in the company’s present and future.
It can be a lengthy process, but recruitment is inevitable when your business is scaling. It must be done. As with everything else in life, the more you do it, the better you get at it. And soon you’ll be able to create a streamlined process. I recommend devoting at least a third of your time to recruiting. That means three interviews a day for at least 30 minutes during blitzscaling. During this time, a company’s social fabric can solidify and things can come together. It’s high time to take notes and ask the tough questions so that real progress can be made.
When recruiting executives for some of the companies I’ve worked with, I identified them and met them wherever they were. It’s critical to let top talent know that you value them enough to put some effort into recruiting. Keep in mind, according to research shared in the Harvard Business Review, about 50% of external hires fail within their first 18 months. Unfortunately, this is something I learned the hard way, and as much as you try to avoid it, there’s really nothing you can do about it.
When it comes to blitzscaling, you need to know how to edit while you’re at it. If something doesn’t work, don’t wait for it to get worse. You have to be ready to eliminate what doesn’t work. Learn to let go sooner rather than later for optimal results.
Blitzscaling can be exciting and terrifying. But remember, luck favors the brave and well-prepared people.
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