How I Built My Team Management System from 0 to 80+ People.
Or a minute of Reflection.
Expecting a bad person not to cause harm
is like expecting:
A fig tree not to ooze sap,
A baby not to cry,
A horse not to neigh,
Or the inevitable not to happen.
What else could they possibly do, given their nature?
From the journal of Nyx Thorne.
Recently, I decided to revisit Adizes’ business lifecycle methodology.
This is undoubtedly one of the most important books for an entrepreneur.
And it’s fascinating to compare my current thoughts with my memories of when I first read this book.
Back then, we were in the infancy stage, just stepping into the "go-go" mode.
Now, as I develop my product—an operating system for modern entrepreneurs—I realize how much this book has influenced me.
Reading about the typical challenges businesses face at different stages, I recall how instinctively and naïvely I tried to handle them.
But the most difficult challenge for me has always been organizing team operations.
Up to 30 people, it wasn’t even a problem but rather an engaging challenge.
One of the main reasons I started my business in the first place was that I couldn’t accept how employees were treated in the companies I worked for.
I dreamed to build a team, a culture, and a workplace where people wanted to be.
A space for creativity, not just a place to clock in and out.
After all, we spend most of our lives working.
Whether it’s running your own business or being employed.
Whether in an office or remotely.
I truly enjoyed finding people with passion in their eyes.
In return, I aimed to create conditions where they wouldn’t have to worry about anything and had every opportunity to unlock their full potential.
And it worked.
Through one-on-one meetings and discussions, I realized that despite our salaries not being the highest in the market, our engagement levels were exceptionally strong.
All thanks to the atmosphere.
I was fortunate to find an amazing HR manager who not only shared my approach but took it even further.
At that point, I was no longer managing every aspect of team interactions.
Instead, I was guiding the creation of the work environment I had envisioned.
Dunbar’s Number and My Personal Limit
Dunbar’s Number is a cognitive limit on how many stable social relationships a person can maintain at once.
- 5 people – your inner circle (family, closest friends).
- 15 people – a broader circle of close friends and relatives you stay in regular contact with.
- 50 people – good acquaintances with whom you have personal connections.
For me, the practical ceiling was around 30.
Once we crossed that line, even though we all worked in the same office, I physically couldn’t keep up warm relationships or remember all the little details.
That’s when I should have stopped and asked myself:
What am I really building? And why?
Growth = Losing Closeness
We kept growing.
Departments formed, HR took over, processes solidified.
But suddenly, there were too many people, some of whom I didn’t even know by name.
It felt… heavy.
I had great relationships with department heads—mostly my earliest hires who had grown alongside the company.
With them, I could easily:
- drive change,
- inspire deep engagement,
- implement systems and processes.
But beyond that level, everything became weaker.
Maybe I wasn’t the kind of leader who could inspire a large team.
Maybe my managers weren’t equipped to handle the complexity.
Maybe it was the IT boom, where people followed the money above all else.
I had seen both worlds:
Small companies with highly engaged teams.
And giant outsourcing firms with 1,000+ employees, preaching “we care” while running glorified sweatshops. Ironically, that’s exactly what I was escaping at the start of my entrepreneurial journey… and exactly where I was heading.
I tried different approaches:
- regular meetings,
- team-building events,
- a company culture book,
- monthly company updates,
- performance-based bonuses,
- birthday gifts for employees' kids,
- one-on-ones with key team members.
Did it help?
Sure.
Just… not in the way I wanted.
At some point, a founder has to go through this, feel it, and ultimately… accept it.
Growth = Letting Go of Illusions
If your plan is to scale, and scaling means hiring, then the first thing to go is your illusions.
A team is not a family.
It’s not a group of friends.
People have different goals, and for most, the primary one is earning money.
Nothing wrong with that.
That’s just how it is.
Which means your leadership style and motivation tactics should be built on structure and KPIs, not personal relationships.
As a Founder, You Go Through Your Own Growing Pains
Just as Adizes compares a company’s growth to human development, a founder also goes through stages of maturity.
Growth comes at a cost.
- KPIs take over from gut feelings.
- Personal connections stop being enough.
- You need systems, processes, and guidelines.
- Clear structures replace instinct-driven management.
Growth isn’t just exciting—it forces change.
And you have to be ready for that.
Disclaimer.
Every business has its nuances, and every founder has their unique context and resources. Whether or not my advice applies depends on your situation, experience, and needs. But one thing is universal—use your brain.
Think about how to apply the advice in your context before acting.
Your way.
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Hi, I’m Eugene.
I went from a freelancer in 2004 to the Founder of a global IT Outsourcing company with 80+ staff, $3M+ turnover, offices worldwide in 2020 and…
...back to lifestyle business with a small, cozy team in 2023.
Insane?
I’m here to share all my knowledge and 20+ years of entrepreneurial experience to help non-tech founders thrive.
My mission is to guide solopreneurs and small business owners through the complexities of today’s digital tech.