When your company crosses that $10M to $20M ARR mark, your job description quietly flips upside down.

In the early days, you survived because you were the ultimate generalist. You knew more about the product, the early customers, or the pitch than anyone else in the building. But as you scale, that dynamic breaks. You start hiring world-class specialists—a seasoned CFO who understands complex revenue recognition, a General Counsel who reads commercial contracts in their sleep, a CRO who has built quota systems across three continents, and a Head of Customer Success who has seen every retention nightmare imaginable.

Here is the uncomfortable truth: if you are still the smartest person in the meeting, your company is in deep trouble.

Yet, most founders struggle with this shift. They fall into one of two classic traps:

  1. The Micromanager Trap: Trying to keep pace with the CMO on performance marketing trends or debating tax accounting rules with the CFO. You end up out of your depth, annoying your experts, and creating massive operational bottlenecks.
  2. The “Hand It Off and Hope” Trap: Backing off entirely, treating your executives like independent warlords, and hoping they figure it out. You lose strategic alignment, accountability, and ultimately your authority as CEO.

Neither works. Scaling your leadership requires a completely different operating model: Participant Leadership. You don’t need to have all the answers, but you must own the alignment, facilitate the debate, and make the final call.

Stop Playing 1:1 Tennis (The Cabinet Model)

Here is a scenario I see with scaling founders all the time:

Your CRO comes to you on Slack or in a 1:1 and says, “We need to change our sales comp plan. The reps are closing 1-year deals and waiting to upsell at renewal because the incentive structure favors it. If we tweak the comp plan, we’ll lock in multi-year deals.” He brings data and a comp structure that worked at his last company.

What does the rookie CEO do?

They say, “Let me think about it,” and quietly run off to talk to the CFO. The CFO immediately points out why that comp plan will wreck the P&L, inflate customer acquisition costs, and destroy gross margins. So the CEO runs back to the CRO and says, “Finance shot down the idea.”

Now you’ve created three problems:

  • You look indecisive and weak.
  • The CRO thinks the CFO is an unreasonable blocker.
  • The underlying business problem—getting more multi-year deals—is completely unresolved.

You are acting like a human tennis ball bouncing between two executives.

The Better Approach: The Presidential Cabinet

Think of your executive team like a Presidential Cabinet. The President doesn’t run around doing isolated 1:1 deals between the Secretary of Defense and the Secretary of State. They bring the Cabinet into the room, lay out the strategic objective, and facilitate the debate.

In the multi-year deal scenario, your job is simple:

  1. Set the strategic context: “We’ve aligned as a leadership team that multi-year deals are a core priority for this year.”
  2. Bring the experts together: Put the CRO and CFO in the same room (or GTM strategy session).
  3. Focus on the ‘Why’: Let the CRO explain the rep behavior problem. Let the CFO explain the margin impact. Ask questions to help them understand each other’s constraints.
  4. Make the call: Once the trade-offs are clear and both sides are heard, make a firm, decisive choice. Maybe you adjust the comp plan slightly, maybe you find a middle-ground discount structure, or maybe you hold steady for two quarters.

Whatever the decision, everyone leaves the room understanding why it was made.

Disagree and Commit (And the Banana Republic Rule)

Once a call is made in that Cabinet setting, debate is over.

I tell my executive teams openly about “disagree and commit.” I cannot have part of the leadership team quietly working against a decision just to prove they were “right” six months later. If someone has such a deep, fundamental objection that they can’t commit, we either spend more time to get them comfortable, or we have a much harder conversation about whether they belong on the team. You cannot scale a company when executives are running separate political agendas.

Which brings me to what I call The Banana Republic Rule.

As your team grows, executives will come to you in 1:1s to complain about each other. The CRO will complain that Marketing isn’t generating real pipeline. The Head of CS will complain that Sales is closing bad-fit deals. The CMO will complain that Product Marketing is lagging behind releases.

If you commiserate with whoever is sitting in front of you—nodding along and saying, “Yeah, I know, their team really needs an upgrade”—you are poisoning your own culture. The moment an executive senses daylight between you and another team member, that team member becomes sidelined and targeted for office politics.

This is not a banana republic.

Your job as CEO is to convey full public faith and confidence in your executive team. When the CRO complains about the CMO, your response should be:

“I hear your concern on pipeline, but we are creating a new category here, and that requires trial and error. I have full confidence in our CMO, and we are addressing lead definitions in our next GTM meeting. I need you two working together on this.”

If an executive has genuinely lost your confidence, address it directly with them behind closed doors and make the necessary change quickly. But as long as they are on your team, they must have your unyielding support in front of the rest of the company.

Inspecting Without “Pigeon Leadership”

Managing experts means setting clear metrics and inspecting them regularly without falling into Pigeon Leadership.

We’ve all seen pigeon leaders: the CEO who swoops into a department unannounced, makes a mess, shits all over everyone’s work, and flies away back to their office, leaving the team to clean up the fallout.

To avoid pigeon leadership, establish a predictable, structured operational rhythm. Define clear V2MOM metrics for each executive function.

Ask yourself this question constantly: “Would this executive be able to represent my exact point of view in a meeting even if I wasn’t in the room?”

If the answer is yes, you’ve built true alignment. You aren’t micromanaging the details of how your CFO closes the books or how your General Counsel redlines a vendor contract. You’ve created an environment where world-class experts can execute at full speed—pointing in the exact same direction.