As your business grows, it’s natural to introduce new systems. Scaling up requires structure, from accounting systems to inventory management and beyond. But the thing that often gets overlooked is, how are you managing your people?
When you’re in the thick of growing your business, it’s easy focus on the concrete stuff. These are things you can measure, control, and streamline: your financials, your operations, your product, your distribution. You might even feel pretty good about new processes you’ve put in place.
But what about the people side?
Many business owner-founders (especially those with smaller but scaling businesses) fall into the trap of thinking people will just “figure it out” as the business grows. If the systems around everything else are working well, why wouldn’t the team be able to work well too?
Well, it’s not quite that simple.
Think about it: your finance department has an operational system that tracks every penny. Your inventory system keeps everything flowing smoothly, and your distribution channels are mapped out to ensure timely delivery. But do your people have a similar infrastructure?
Here’s why they should.
You can have the best products, the sharpest processes, and the most well-defined financial systems in the world. But if your team isn’t equipped to handle the demands of a growing business – if they don’t know what’s expected of them, if they’re unclear on their role or how their performance fits into the bigger picture – the other systems will only get you so far.
In the early stages of a business, when there’s just a small group of people, it feels like everyone’s on the same page. Communication is easier, there’s more overlap, and it feels like you’re all working together. But as your business grows and you add more team members, the lines start to blur. Everyone’s roles expand, and suddenly, accountability starts slipping through the cracks.
The power of a simple ‘people system’
Introducing an operational system for managing your people is just as important as managing your finances or your product. But unlike a software tool or a manufacturing process, this one’s a bit more nuanced. People systems aren’t something you can buy off the shelf.
It requires:
- Clear role definitions – Not just what people are doing but how they’re expected to behave within the company culture.
- Performance frameworks – It’s not just about getting work done; it’s about knowing what success looks like and having a way to measure it.
- Communication systems – Regular feedback, clear expectations, and a shared understanding of the business’s goals.
- Accountability structures – Just as in operations, if people don’t know who’s responsible for what, things can quickly slip through the cracks.
What happens when you don’t have a ‘people system’?
Without a robust people infrastructure, you’ll find yourself firefighting. You’ll be spending time dealing with frustrations that could have been prevented with clear role definitions and an open line of communication. This drags you away from the strategic work that grows the business, pulling you back into micromanaging.
But it’s not just you – your team will feel it, too. Without clear systems in place, people start to feel unmotivated, confused, or disengaged. And even the most committed employees can begin to lose their way if they’re unsure of their responsibilities or how they fit into the company’s future.
How to start building your people system
So, how do you create such a system? Start small, but start now. You don’t need a complex HR platform – just some simple, structured frameworks to give people the clarity and direction they need.
- Define roles – go beyond job titles. What’s expected in the day-to-day? What are the key deliverables – just 3 to 5 items – for each role? What does success look like for each deliverable?
- Create clear KPIs – tie every role to a key commercial result or metric. Make sure everyone knows how their contribution impacts the bottom line.
- Focus on feedback – regular check-ins should be a part of your culture. People need to know where they stand, what’s working, and where they need to improve – and they need a structure for giving you feedback, too.
- Build accountability – make sure there’s clarity on who owns what, so things don’t fall through the cracks.
The results speak for themselves
When you invest time in setting up solid systems for people’s performance, you’re giving them the tools they need to succeed. And when your team is empowered, they can make better decisions, take ownership, and push the business forward. When your team thrives, your business thrives.