CHAPTER 6A Leader Steps Up: Stage 2, Directive Leadership

Your first and foremost job as a leader is to take charge of your own energy and then help to orchestrate the energy of those around you.

―Peter F. Drucker

In a chaotic organization that is growing fast, the move to directive leadership can be a sweet relief. The chaos of stage 1 abates. Decisions are made more quickly, strategies become consistent, clarity is established, and the company is able to align and move forward. It no longer feels like everyone is just muddling through and trying to stay afloat.

For an organization or a business that has been toiling in stage 1, clear direction is like manna from heaven. Everyone can focus on developing, selling, delivering, supporting, or whatever their particular job may be. Directive leadership is the natural answer to the confusion of stage 1, which is why it is the next step forward in the journey of enterprise evolution.

Stage 2 is the most common of the four stages of enterprise evolution. In terms of sheer numbers, stage 1 companies may be prolific but they are often short-lived. By some estimates, more than 50 percent of companies fail within the first five years. Successful stage 2 companies have made it through the rough waters of their infancy, become established, and started to scale. The transition to stage 2 represents the moment when venture capital might step in, once the value proposition is established and the business needs an infusion of funding to scale. ...

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