The Hidden Reason Growing Businesses Stall: Weak Leadership Structure

And why delaying it costs growth, team development, and client experience

There’s a moment in every growing business where what used to work suddenly doesn’t.

  • The founder can no longer be in every decision.
  • Informal conversations stop being enough.
  • Good people start pulling in different directions — not because they don’t care, but because they’re unclear.

This moment usually arrives when a business grows beyond 15 employees — the beginning of what many describe as the delegation phase.

And it’s here that one of the most common leadership mistakes occurs:

👉 Structure is delayed because leaders fear it will slow them down.

In reality, the opposite is true.

Without structure, leadership collaboration fragments.
With structure, leadership capacity multiplies.

The Delegation Phase: Where Growth Either Accelerates or Stalls

Up to around 12–15 people, most businesses operate on trust, proximity, and goodwill.
People sit close together. Decisions are fast. Context is shared.

But once headcount grows you’re moving into the Delegation Phase for your business.  When you and your team need to delegate effectively to others.

  • The MD or key leader doesn’t have the capacity to “see” everything.
  • Informal communication breaks down.
  • Functional silos quietly form.
  • The MD or key leader becomes the bottleneck again.

At this stage, leaders often know structure is needed — but hesitate.

Why?

  • “We don’t want bureaucracy.”
  • “We’ll put it in place once things settle.”
  • “We’re moving too fast to slow down.”

But rapid growth is exactly when structure matters most.

Not heavy structure.
Not rigid process.
But clear, intentional structure that allows leaders to collaborate effectively in your current and near future context.

What Structure For Leaders Really Means

When we talk about structure at Orchard Coaching, we’re not talking about rules for the sake of rules.

We’re talking about creating a container where leaders can:

  • think strategically
  • challenge each other
  • solve cross-functional problems
  • stay aligned as the business evolves

Strong leadership structure consistently includes five key elements.

1. Leaders Meet Frequently for Alignment & Strategic Thinking

Leadership teams that meet monthly are already behind.

In growing businesses, weekly leadership meetings are essential — not to micromanage operations, but to:

  • stay ahead of issues
  • identify patterns early
  • align priorities across functions
  • think strategically, not reactively

Without regular cadence, leadership becomes fragmented.
With cadence, momentum builds.

The meeting itself becomes a leadership muscle.

2. Leaders Understand Each Other’s Differences

Leadership teams don’t fail because of lack of intelligence.
They fail because of misunderstanding.

Different leaders bring different:

  • priorities
  • communication styles
  • decision-making approaches
  • pressure points
  • values

Without shared understanding, differences become friction.

Using tools like DiSC, Leadership Circle Profile, or facilitated conversations, leaders learn:

  • how others think under pressure
  • what each person values most
  • how to communicate without triggering defensiveness

This understanding creates trust — and trust is what allows honest debate and faster decisions.

3. Leaders Commit to Ongoing Education

Leadership is not static.

To quote Dan Sullivan: “What got you here will not get you there.”

High-performing leadership teams invest in ongoing executive education — monthly is ideal.

This might include:

  • leadership skill development
  • strategy alignment sessions
  • facilitated reflection
  • learning how to lead through complexity and change

Why this matters:

  • It creates a shared leadership language.
  • It lifts the maturity of conversations.
  • It reinforces that leadership growth is expected, not optional.

When leaders grow together, the business grows together.

4. Leaders Can Engage in Constructive Debate

Healthy leadership teams disagree — productively.

They:

  • challenge ideas without attacking individuals
  • explore different perspectives
  • surface tension rather than avoid it
  • make decisions and commit, even when not everyone agrees

This only happens when leaders feel psychologically safe.

Structure creates that safety:

  • clear meeting rhythms
  • agreed behavioural expectations
  • facilitation that ensures every voice is heard

Without this, meetings become polite, shallow, or dominated by a few voices — and the real issues stay underground.

5. Leaders Share a Common Language Through Metrics

One of the fastest ways leadership teams lose alignment is when everyone brings opinions instead of data.

A common language of:

  • KPIs
  • metrics
  • goals
  • scorecards

allows leaders to:

  • discuss reality, not perception
  • bring their functional perspective clearly
  • identify trade-offs consciously
  • make better, faster decisions

Metrics don’t replace judgment — they sharpen it.

Structure Must Be Implemented in Phases

One critical mistake we often see is going from no structure to heavy structure too quickly.

That overwhelms leaders.
It distracts from client delivery.
And it creates resistance.

Effective leadership structure is implemented incrementally:

  • Start with cadence and clarity.
  • Introduce metrics gradually.
  • Build capability alongside accountability.
  • Increase formality as leadership maturity grows.

Structure should support the business — not suffocate it.

A Case Study: From Silos to Client-Centred Leadership

One Orchard Coaching client was a rapidly growing marketing business with around 35 employees.

They had expanded by adding new products that solved their clients’ challenges both upstream and downstream — a smart strategic move.

But internally, the leadership team was struggling.

Each product leader was operating in a silo.
There was little holistic view of the client.
Meetings were irregular.
There was no shared language or safe space for real conversation.

They had a leadership team in name — but not in function.

What Changed

We worked with them to incrementally implement leadership structure:

  • Regular leadership meetings with a clear rhythm.
  • Shared understanding of styles, priorities, and pressures.
  • Introduction of common KPIs focused on client outcomes.
  • Facilitated conversations to build trust and constructive debate.

Importantly, we didn’t overhaul everything at once.

Structure was layered in at a pace the business could absorb.

The Results

The impact was significant and measurable:

  • Cross-selling and up-selling within existing clients increased significantly.
  • Leaders began collaborating around the whole client, not just their product.
  • Client satisfaction improved.
  • Retention increased.
  • Profitability lifted as duplication and internal friction reduced.

Structure didn’t slow the business down — it unlocked growth that was already there.

The Three Pillars We Always Focus On

When building leadership structure, we consistently focus on three areas.

1. Structure

Clear rhythm, forums, tracking of agreed actions, follow up, agendas, metrics, and decision rights that enable leadership collaboration.

2. Right People

Do leaders:

  • align with the organisation’s values?
  • get what the role requires?
  • have the capacity to lead at this level?
  • genuinely want the responsibility?

3. Right Roles

Do the roles:

  • fully cover what the business needs?
  • have clear authority?
  • allow leaders to focus on what matters most?

Structure without the right people fails.
People without clear roles struggle.
All three must evolve together.

The Bottom Line

As your business grows, leadership can no longer rely on proximity and goodwill.

It requires intentional structure.

Not to control.
But to connect.
Not to slow down.
But to scale.

If your business is moving into or through the delegation phase, the question isn’t whether to build leadership structure — it’s how intentionally and how soon.

Because when leaders collaborate well, the whole organisation moves forward — together.

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