Startup Management Structure

I really love this breakdown by Tom Tunguz and the idea of the ever-changing management structure that a small organization needs to encounter and work through.

Curiously, this pattern is consistent across companies. When startups approach those employee counts, communication within the company breaks down and the startup can’t effectively coordinate its people. The telltale signs include confusion in the organization, uncoordinated efforts across teams and frustrated employees.

I can vouch for these telltale signs, as Tunguz suggests, as there were definitely times in my previous companies where the exact thing occurred as we scrambled to introduce new layers of management and structure as the organization continued to grow.


I think it’s worth stating that these are great problems to have and it means that the company is sound and that things are firing on all cylinders in the core aspects of the business.

The true test of the staff and management will be their ability to evolve and the management layers and organizational structure should change as a consequence of these things.