There’s a well-known concept in the technology world known as Crossing the Chasm, coined by Geoffrey Moore, which describes the perilous gap between early adopters of an innovation and the more pragmatic majority. Companies that fail to traverse this divide often stall or fade; those that succeed, scale. What’s less often acknowledged is that organizations themselves go through a similar evolution – and one just as fraught with risk and reward.
Having observed dozens of companies through the journey arc of formation, transition and high growth, a pattern becomes unmistakably clear. Much like products, organizations have their own chasm to cross – a point where the behaviors, structures and instincts that once propelled them forward begin to inhibit further progress. These inflection points are not signs of failure. They are signs of success demanding a fundamentally different operating model and different form of leadership.
Four phases of organizational maturity*
We can describe this journey in four broad phases: Hustle, Transition, Scale-ready and High scale. Each demands a different organizational design and leadership ethos – not better or worse, but fundamentally different.
| Stage | Hustle | Transition | Scale-ready | High scale |
|---|---|---|---|---|
| Organizational structure |
Flat, founder-led | Mixed capability | Clear structure | Role excellence |
| Leadership culture | Intuitive, heroic | Reactive, strained | Accountable, data- and process driven | Delegated, repeatable, predictable |
| Critical Shift | From gut feel to shared clarity | From firefighting to first systems |
From control to empowerment | From optimizing today to reviewing tomorrow |
In the Hustle phase, entrepreneurial energy and founder instinct reign supreme. Organizations are flat, nimble and guided by instinct and urgency. Leaders are heroic — stepping in, rolling up sleeves, making quick calls and wearing multiple hats.
But as success compounds, so too does complexity. The Transition phase brings growing pains: capabilities are uneven, processes are ad-hoc and decision-making becomes bottlenecked. Many companies falter here. This is the organizational chasm. It is not a failure of intent or intelligence, but of adaptation. What got us here will not get us there.
To move forward, companies must adopt structure without losing soul. The Scale-ready organization is one of clear roles and accountable execution. Leaders shift from intuition to instrumentation. They drive performance through clarity, data and delegation — not personal heroics.
Finally, in the High Scale phase, operational excellence becomes second nature. Teams are empowered. Strategy becomes iterative. Leadership is no longer about stepping in — it’s about stepping back, ensuring the systems work and creating space for innovation at scale.
The role of the Board and leadership through each shift
The Board’s role through these stages is not simply to observe, but to anticipate and advise. One of the most common pitfalls is to apply expectations from a later stage to a company in an earlier phase – or vice versa. A founder-led startup will not function like a mature public company, nor should it. But if it aspires to become one, it must be willing to change – and quickly.
Similarly, leadership styles must evolve. The leader who once thrived on speed and improvisation must learn to embrace structure, empower others and communicate at scale. Some rise to that challenge. Others do not. Both outcomes are valid – but they must be recognized early.
A shared archetype
This evolution mirrors not only Moore’s Chasm, but also Carl Jung’s psychological archetypes as adapted for business. Many early-stage organizations are powered by “Creators,” “Explorers,” and “Rebels.” These personas bring invention and momentum. But as companies scale, they require “Sages,” “Caregivers” and “Rulers” – those who bring order, discipline and durability.
Great companies don’t swap one group for the other. They evolve their center of gravity while retaining a thread of their origin story.
The balancing act
At each stage of growth, companies face a crossroads: evolve the leadership model — or stay stuck in patterns that once served them but now slow them down.
The balancing act is about helping founders and executives recognize these moments — and shift the behaviors, mindsets and systems that allow the organization to cross its next internal chasm.
| Hustle (flat, founder-led) |
Transition (mixed capability) |
Scale-Ready (clear structure) |
High Scale (role excellence) |
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|---|---|---|---|---|---|
| Leadership behaviors that keep teams stuck |
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| Leadership behaviors that propel teams forward |
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| Example diagnostic question | If the founder disappeared for a month would progress grind to a halt? | Have we outgrown our first ten hires? | Are we building culture and capability in tandem? | When was the last time we reinvented ourselves? | |
Conclusion: scaling is a continuous leadership balancing act
Every stage of growth demands a crossroads: evolve leadership models or get stuck – this is tough for all leaders. The balancing act is about recognizing inflection points and shifting behaviors, mindsets and systems. Crossing the organizational chasm is less about abandoning your DNA – and more about upgrading it for the next stage of the journey.
References
* Author’s note: The framework I used is one I encountered years ago and while I have not been able to identify its original source, it deserves proper attribution. If you recognize it, please reach out. Until then, consider this an acknowledgment that it originated elsewhere and that I greatly value its insight.
Other references:
- The Hero and the Outlaw: Building Extraordinary Brands Through the Power of Archetypes by Margaret Mark and Carol S. Pearson
- Crossing the Chasm (HarperBusiness, 1991) by Geoffrey Moore
- The Hero and the Outlaw by Mark & Pearson
- The Five Trademarks of Agile Organizations by McKinsey & Co.
- Structure That’s Not Stifling by Harvard Business Review
Richard Fifield brings to memoryBlue a seasoned perspective in entrepreneurship, finance, and governance. He is a founder, investor and advisor with deep experience scaling early-stage and high-growth companies. He has served both SMEs and AIM-listed firms, supporting them through capital raises, board dynamics,and strategic execution.
Fifield is also the founder of Realise Capital, a strategic and financial advisory practice, and earlier in his career he has held roles as a co-founder, CEO and corporate finance executive.
