Navigating Hypergrowth: The Critical Role of the BizOps Function

In the fast-paced startup world, scaling efficiently is crucial for success. However, as companies experience hypergrowth, they often face a challenge: managing young managers hired early in the company's life-cycle, now leading large teams.

While some adapt and thrive, others may struggle to keep up with increasing demands. Business Operations (Biz Ops), popularised by Matt Mochary, provides strategic and operational support to help companies navigate growth and ensure young managers have the tools and guidance to succeed.

‍The Challenges of Managing Young Managers During Hypergrowth

As companies scale quickly, young managers hired early on face the daunting task of managing increasingly larger teams. Some will learn to be effective at a pace that matches the company's growth, while others may struggle.

This presents a challenge for company leaders, who must balance transparency with the risks of demotivation and attrition.

At this critical juncture, leaders often tussle with the difficult decision of whether to "layer" an underperforming manager. They fear demotivating the individual or causing them to leave prematurely, as finding and bringing on a suitable replacement can take a long time. To navigate this sensitive situation with care, balancing the need for transparency with the potential risks to team morale and stability, it's important to address performance issues promptly and constructively, even in the face of short-term discomfort. 

While the temptation to delay action may be strong, the long-term health of the organisation depends on addressing performance issues promptly and constructively, even in the face of short-term discomfort.

However, this fear is often overblown, as most young managers are eager to learn from more experienced leaders. Nonetheless, improving team performance is an urgent priority, and recruiting a new manager from outside can be lengthy.

To address these challenges, large tech companies like Google and LinkedIn have created Business Operations (Biz Ops), staffed with consultants from top-tier firms. They possess the skills and experience needed to support young managers and drive company growth.

At Coinbase, where Emilie Choi scaled Biz Ops during a period of hypergrowth, this team serves as "mini-CEOs" who can:

1. Parachute into any problem area, dig in, and fix it.

2. Build and drive processes that help the company scale, including running quarterly business reviews and managing OKRs.

3. Join a team where the manager is struggling, and take over project and people management duties while keeping the former manager as the subject matter expert. The former manager becomes the architect, determining the roadmap, while the Biz Ops person manages the team to ensure the roadmap is executed.

4. Effectively run meetings and train managers on how to do so.

5. Act as Chief of Staff to the CEO.

By providing strategic and operational support, the Biz Ops team helped Coinbase navigate the challenges of rapid growth and ensure that young managers had the guidance and resources needed to succeed in their roles.

Ref: Coinbase President and COO: On operating the largest crypto platform‍

Implementing a Business Operations Function‍

To establish a Biz Ops function, start by hiring a Chief of Staff (CoS) who meets the required specifications. Once the CoS is fully trained, they can hire another person with similar skills to serve as the first "smoke-jumper" for the Biz Ops team, laying the foundation for further scaling.

While some companies may already have a Biz Ops function reporting to Finance or Operations, it's crucial for the CEO to have a dedicated Biz Ops team reporting directly to them. This ensures the CEO receives the necessary support to drive the company's growth and success.

The effectiveness of the Biz Ops function is evident at companies like Coinbase, where Emilie Choi built and scaled the team during a period of hypergrowth.

At Uber Direct, Gurmehar Sodhi joined as a Senior Business Operations Manager to help scale the business in Canada. He focused on process optimization and data-driven decision-making, conducting in-depth analyses to identify bottlenecks and implement efficient systems. 

When faced with supply chain management challenges, Gurmehar and his team streamlined processes, reducing costs and improving delivery times. He also played a key role in defining and tracking KPIs, working with cross-functional teams to establish a comprehensive dashboard that monitored critical metrics. 

This data-driven approach enabled informed decision-making and continuous optimization.

Other notable examples include Airbnb, where Biz Ops teams have played crucial roles in supporting the companies' rapid expansion and global scaling efforts. 

These teams have focused on process optimization, data-driven decision-making, and providing strategic and operational support across various functions, such as product development, marketing, and customer support.

In the face of hypergrowth, the role of Business Operations in managing young managers cannot be overstated. By providing strategic and operational support, as well as a training ground for future leaders, Biz Ops can help companies navigate the challenges of rapid growth and ensure that young managers have the tools and guidance needed to succeed in their roles.