Here’s what we know about hyperscalers: they outperform industry peers, remain resilient during downturns, and maintain strong cash positions. They set the bar high for corporate performance, and they aren’t afraid to make bold moves…
Claudy Jules, partner, McKinsey Washington, DC; Alok Kshirsagar, senior partner, Mumbai; Kate Lloyd George, associate partner, Southern California
Hyperscaling companies dare to be unreasonable.
6 factors crucial to the success of fast-growth:
1- A Structure Built specifically for Growth – change mindsets from “growth for funding” to “growth for sustained scale”; pivot fast… may need to redefine workforce size, composition, & shape and to clarify roles & responsibilities to streamline & empower decision-making
2- Effective Ways of Working – strategic priorities may change, reporting lines may alter, decisions may take longer… hyperscaling companies adopt cross-functional approaches to governance and are clear about KPIs & OKRs
3- A Talent Development Engine – clarify talent management strategy & employee value proposition… longer term, also need to create & communicate clear employee development paths
4- A Distinctive Culture – use surveys & benchmarks or focus groups to help determine the elements of culture to keep or to sunset… take care to explain why pursuing hyperscaling— to engage employees & to maintain cohesive culture
5- Scale Leadership Capabilities – layers of management will grow— requiring intentional development of leadership capabilities across the organization… balance the needs of “growth leaders” & “operational leaders.”
6- An Aligned Founder CEO & Top Team – vision should be a catalyst for scaling-up—but not the only guiding force… engage in honest team conversations and gauge interest & capabilities for the expedition
Exponential growth without exponential complexity
bonus nuggets:
Hyperscaling companies dare to be unreasonable. They set a course with a clear and audacious vision of why they need to grow. They have equal parts stability and dynamism in their operating models, which allow them to find, retain, and develop the right teams, cultures, and processes for scale-up. They are ready to plant a flag in the short term—and are able to navigate whatever challenging terrain lies over the horizon.
Putting one foot in front of the other
