A $14M services company lost $180K in one quarter.
The founder took a two-week vacation. First time in four years.
When he came back, a key client had been mishandled by the ops manager.
A vendor contract had been auto-renewed at the wrong rate. Three decisions that needed escalation had been made unilaterally, all three were wrong.
The founder blamed the team. The team blamed the founder for not leaving instructions.
Both were right. Neither was the problem.
The problem: the company had grown to $14M on tribal knowledge.
Nothing was documented. Decisions lived in the founder's head. The team was not incompetent — they were operating without architecture.
When the founder left, the architecture left with him.
Every company has a version of this. The founder IS the system. That works at $2M. It breaks somewhere between $8M and $15M, usually quietly, until it breaks loudly.
The fix is not a better team. It is decision rights documentation who owns what, at what threshold, with what escalation path. Built before the founder leaves, not after the loss.
A two-week vacation should not cost $180K. If it does, you do not have a business. You have a person.
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https://substack.com/@chiefoperatingofficer/note/c-267656228