The Risk of Scaling on Quicksand
Cycle-breakers and transitional characters in hypergrowth companies.
Speed. Scale. Growth. Profits.
All of the above.
This is the high-stakes world of hypergrowth companies.
Under an immense pressure to scale rapidly, a fundamental truth is often overlooked: companies cannot build sustainable growth on a foundation of dysfunction.
On the one hand, effectively navigating hypergrowth requires companies to look beyond the superficial changes and address the deep-seated issues that hinder progress. On the other, the relentless drive for profit can lead to burnout, ethical compromises, and toxic work environments. These are expected adaptive challenges that call for a very intentional kind of leadership that not only acts as change agents but as true cycle breakers.
Transitional Characters: The Transformational Role of Cycle Breakers
Dr. Carlfred Broderick, a renowned therapist and scholar at the University of Southern California, introduced the concept of "transitional characters"—individuals who, within a single generation, change the entire course of a lineage.
Their contribution to humanity is to filter the destructiveness out of their own lineage so that generations downstream will have a supportive foundation upon which to build productive lives. (Dr. C. Broderick)
In the context of transformational leadership, we desperately need more transitional characters—those who can interrupt the cycle of dysfunction and set a new course for the future. This is particularly imperative in hypergrowth companies, which go through overlapping and complex disruptions that exacerbate existing dysfunctions and ignore underlying human tensions as they build up.
The Cost of Ignoring Dysfunction
Attempting to scale up without addressing underlying dysfunctions is like building on quicksand. The cracks will eventually show, slowing down the trajectory and stacking up imploding risks. Internal human tensions accumulate, creating an environment fraught with conflict, stress, and disengagement. This not only hinders growth but also puts the entire organization at the edge of collapse.
The scenario of systemic failure in an organization is not hyperbole. It’s well-researched1 that at least 70% of scaleups fail, resulting in a whopping $20+ billion in annual investment losses, thousands upon thousands of people in job displacement in a saturated job market, and the instant dissolution of those dreams for a better world that founders once had. This high failure rate significantly affects key economic sectors of global impact such as Technology, Healthcare/Biotech, and Consumer Goods/Services.
Cycle-breaking Leadership in Hypergrowth Companies
Cycle breakers are the healers and reformers. They recognize that meaningful and lasting change cannot occur without addressing the root causes of dysfunction. These leaders work to dismantle harmful patterns and rebuild cultures on principles of integrity, empathy, and human dignity.
They are the ones who transform organizations from the inside out.
Simon Sinek’s call to action, “Be the leader you wish you had,” resonates deeply with the meaning of cycle-breaking in leadership and the role of transitional characters in hypergrowth companies. These leaders bear the weight of transformation, working tirelessly to break down barriers and build up new, healthier ecosystems. But the impact of their work is profound, creating ripples of needed change that extend far beyond the organization.
They deeply challenge the status quo by:
Prioritizing the well-being of their teams and the organization over personal gain, lifting generative environments of trust, inspiration and community.
Confronting and dismantling harmful behaviors and creating spaces where everyone feels dignified, valued and respected.
Addressing issues head-on and setting a high standard for integrity and commitment.
These leaders carry immense responsibility on their shoulders requiring strength, courage, and adaptability. They are conscious of the difference they make in the process of taking their companies to higher skies.
The role of the transitional character is to transform the trajectory of future generations by refusing to perpetuate the negative patterns they inherited. (Dr. C. Broderick)
The need for cycle-breaking leaders has never been greater. We need companies that refuse to perpetuate dysfunction by elevating those who intervene as transitional characters in transforming them from within, ensuring that growth is built on a foundation of integrity, dignity, and humanity, breaking negative patterns to build a healthier scaling trajectory, and changing the organizational lineage to pave the way for a bright and viable future.
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About the author:
Dr. Lindsay Ruiz, EdD is the Founder and CEO of human as usual | scaling generatively, advancing humankind
email: lindsayruiz@humanasusual.com
LinkedIn: https://www.linkedin.com/in/lindsayruiz/
Related Sources: Startup Genome Report, CB Insights, Kauffman Foundation, Harvard Business Review, Noam Wasserman's Research, Bloomberg.