Context

Most people misconstrue agility in business as acceleration for acceleration’s sake. Scaling up is not just about driving at 1,000 km per hour at all times. Success loves speed, but there’s a science to it.

One of the dangers of hypergrowth is burning out, both in the financial sense (as in cash burn) and in terms of the physical, mental and emotional toll of managing large-scale change in a company.

That’s why in business – despite the obsession with speed – we often hear the phrase: Go slow to go fast.

An indication of the necessity of pausing – even at the height of rapid change – to reassess and reflect on the direction an organisation is taking.

From my experience of turning around and scaling up businesses, I would add another element to that phrase to avoid the perils of burnout: Go slow, go lean, then go fast. 

Real Life Story

One tale of transformation that stands out for me offers profound insights into the art of business scalability and agility.

Martin Bell, a maestro of corporate turnaround, orchestrated a remarkable symphony of change at Zalando, Europe’s leading online platform for fashion and lifestyle. How did he find the right tempo?

When Martin stepped into Zalando in 2012, he was met with growing pains that echoed the harsh realities of a startup scaling too quickly: unchecked growth, with expenses soaring as high as aspirations, especially within digital marketing and fulfilment.

Yet, Martin, with the precision of a seasoned conductor, realised that the path to harmonising Zalando’s operations lay in embracing a tech-centric renaissance. A strategic pause on hiring, except for tech, became the silent beat before the crescendo.

Automation of processes followed, not just at a remarkable pace but with a clear intent – efficiency and scalability provided a new rhythm.

Martin re-engineered the hiring process, introducing online programming tests and global talent recruitment. The result? A tenfold increase in monthly hires became the new vanguard of Zalando’s customer-facing and internal automation initiatives.

As growth picked up tempo, Zalando’s transformation into a leaner, more profitable entity was palpable, culminating in a triumphant IPO in 2014.

From Martin’s strategic opus, we learn that to be a 10X entrepreneur, we must be adept in hyperturnaround and hyperscale strategies. 

PostScript: Martin is an example of a leader who first mapped out his strategy for growth before going full speed ahead.  

Practical Tools

Let's distil the essence of Martin's approach: 

• Tech as a Lever: By prioritising technological prowess, Zalando streamlined operations and set new benchmarks for efficiency. 

• Strategic Hiring Freeze: A deliberate pause in hiring, except in crucial tech roles, allowed for a recalibration of resources, proving that sometimes, less is indeed more. 

• Global Talent Outlook: Casting a wide net for international talent brought diverse perspectives and skills essential for a global player. 

• Process Automation: Embracing automation paved the way for scale without increasing complexity or cost proportionally. 

• Adaptability in Leadership: Martin’s ability to switch from aggressive expansion to a strategic consolidation is a testament to the dynamic role a leader must play. 

• Value of Measured Growth: Zalando’s journey underlines that disciplined growth, even for startups, is vital for long-term success. 

Find Out More

Do you want to learn more about the practical tools noted above? Are you aiming to find the right tempo for scaling up your business?

Feel free to click the button below if you feel you might need help.

Until next week, may the force be with you.

Kevin

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