Team Building, Business Building John Gauch Team Building, Business Building John Gauch

The Two Mindsets Every Growth Team Needs

Two mindsets shaped how the best teams I've worked with solve problems: the data-driven decisiveness of the MBA and the curiosity and humility of the designer. Both are rigorous. Together, they're unstoppable. Founders building growth teams must hire for both.

Photo by AI25 Studio from Pexels.

Hi there - I’m a hands-on operating partner to founder-led companies and a fractional COO. Over 20+ years, I have applied my growth and operations experience to help dozens of startups (Axiom, Spartan, etc.), having begun my career as a business and technology lawyer in New York City. So far, I have helped build one high-impact startup to nearly $100M in revenue and a second to exceed that benchmark.


In my first business role after leaving my position as a Technology Transactions Associate at Morrison & Foerster, I worked at a New York City venture-backed startup—a firm client. It was an exciting time at this company, which was creating a new software and hardware product in the AdTech space backed by top dot-com-era companies and investors.

I had a business development role, which entailed using my transactional skills gained as an attorney (1) to pursue strategic relationships to grow the company, and (2) to negotiate critical technology partnerships underpinning the product. I interfaced directly with the engineering, sales, marketing and product teams. We were on a very tight schedule to launch for our first client, Virgin, and we successfully got everything in place on time for the 10,000+ people on the wait list. But it was tight.

Read also: What Founders Need Beyond the Lean Canvas

My teammates had MBAs from places like Darden, at the University of Virginia, and Wharton, at the University of Pennsylvania.

The company had also engaged the design consultancy IDEO to assist with product design.

I interacted with both groups, and that experience became the formative work experience I never expected.

Why?

The “MBA”-types had incredible strengths in deductive reasoning, quantitative abilities, and big-picture, top-down insight generation.

The “design”-types excelled in their inductive reasoning skills, qualitative abilities, and big-picture, bottom-up insights.

They each brought a valuable and necessary—but often different—perspective to problem-solving and decision-making.

Particular strengths of MBAs were discipline in working with data and a drive to make decisions. A particular strength of the designer, or "lean," mindset was the humility they demonstrated in acknowledging that one may not have all the answers, which fueled their curiosity to close those gaps. Both groups shared attention to detail and analytical rigor, as well as a focus on fact-gathering and assumption testing.

Read also: What Growth Founders Need to Add to EOS

The real magic happened where the two approaches overlapped: for example, a data-driven hypothesis was paired with a test with real people before we placed a big bet.

From those days on, I made a point of building and deepening my skills and experience in both domains. I didn’t want to be just one or the other but to embody both approaches, and I’m not alone anymore. It’s been exciting to see more people embrace this hybrid professional development model in the years since.

For founders of growth companies, the takeaway is straightforward: hire people and build a team that can do both. The best problem-solving happens where humility, analytical rigor, data, and a bias to action meet.

Let’s connect to discuss how these ideas apply to your team.

Read about past projects that highlight the design thinking approach in my portfolio.
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Defining our Terms: What is a Fractional Leader Anyway?

Many leaders today, across functions, work on a fractional basis, part-time embedded in a team. But let’s take a moment and be super clear on exactly what we’re talking about when it comes to fractional executives, and how the role compares to advisors, mentors, coaches and consultants.

What it takes to be a superhuman founder—not what some people think.

Here’s a little about me in case you’re new here - I’m a seasoned fractional COO, sales coach (Microsoft) and mentor (High Alpha, Techstars). Over 20+ years I have applied my growth and operations skills to help dozens of startups (IAN, Axiom, Spartan). I began my career as a tech lawyer in New York City. I developed my expertise in progressive roles in business development, finance, sales, marketing and product, working along the way with companies like Amazon and IBM. So far, I have helped build one high-impact startup to nearly $100M in revenue and a second to exceed that benchmark.


“Fractional” leaders are not new to the world.

It’s a tried and true model for Chief Executive Officers to get the help they need to grow and operate their businesses. There’s still a lot of confusion around the term though, so here are definitions of various business helpers excluding full-time hires, which we all understand well enough presumably.

I’ll start with an “advisor” and end with my definition of a fractional executive or fractional leader.

One thing I want to share first is my bias for working with people—in any category—who properly balance “helping” and “telling.”

  • Helping happens when someone is curiosity-driven and understands there may be a lot they don’t know about a situation, to start at least. They’re committed to gaining this understanding to see whether and how they might be useful to another person. The reason to use this specific word is because the inquiry itself can help the other person gain greater clarity into what they are wrestling with.

  • Telling happens when someone is drawing on their expertise or experiences to make an assertion or prescription--a tactical recommendation, for instance.

Here’s a shorthand way to think about it.

Take doctors. When we’re in the diagnostic phase of working with a patient, we are in a “helping” mode. Sometimes, we never leave that conversational stage because we get to a useful insight or discovery that means we don’t need to go any further. We resolve the question at hand! When that doesn’t happen, we proceed to make a diagnosis and “prescribe” a next step. That is “telling.”

I’d be wary of relying on the contributions of someone who begins with telling or moves on to telling very quickly, for no other reason than that they probably don’t know enough to be so prescriptive so fast.

All of the below roles are assumed to report to the CEO or a founder, or at a later-stage company, a senior leader perhaps.

Read also: Axiom: Discovering the Benefits of Fractional Talent

Advisor

An expert in a domain. The relationship could be any length, including indefinite. The commitment is on the order of one hour per week or less on average. Advisors lean toward more telling based on their domain expertise but should still start with helping questions. They don’t do work or follow through on their insights. They are not embedded in the team and don’t manage others.

There is also a flavor of advisors primarily there for branding, marketing and possibly networking purposes.

Mentor

A future version of yourself in one or more dimensions. The relationship could be any length, including indefinite. The commitment is on the order of one hour per month. Mentors share their relevant experiences and still do lots of helping. They don’t do work or follow through on their ideas. They are not embedded in the team and don’t manage others.

Coach

An expert in helping other people learn and grow. The relationship could be any length, including indefinite. The commitment is on the order of one hour per week. They emphasize helping someone think things through and discover new perspectives and options. They might offer recommendations (i.e., telling) with care. They don’t do work or follow through. They are not embedded in the team and don’t manage others.

Read also: When Don’t You Need a Fractional COO Like Me

Consultant

Fractional talent used to be a variant of consulting. Below is the definition of a consultant after carving out fractional talent:

An expert in a domain or domains. The relationship is limited to a project, defined by having a distinct beginning and end; a consultant might string together multiple projects over time. The time commitment varies and might extend to a few individuals if working with a consulting firm. They start with helping before moving on to telling. They execute the project they define but don’t do follow though that is out of scope. They are not embedded in the team but are sometimes co-located, and they don’t manage others.

Fractional Executive / Fractional Leader

The term “fractional” is often reserved for CXO-level roles. A fractional exec can provide the expertise of an advisor and consultant, insights from relevant prior experience like a mentor, and when called for, the thoughtful engagement of a coach

Fractional talent doesn’t just advise, share experiences, or ask good questions. They roll up their sleeves and do the work that results from insights. And they do that work as an extension of the team, developing knowledge that flows back to the organization. They also can hire, develop and manage team members.

  • The relationship lasts as long as it’s providing value.

  • The commitment ranges from a few hours to multiple days and possibly even flexes up to full-time for stints (similar to an “interim” CXO).

  • The relationship balances helping and telling as new problems and opportunities arise to be addressed.

Read also: Essential Leadership Skills for 2024: What They Are and Why Every Leader Needs Them

Finally, successful fractionals have top-notch management and leadership skills. Because they operate like a team member and are spread across different companies, they have exceptional self-management skills too. They are fast learners and have the ability to seamlessly switch between contexts and tasks, necessary attributes to hit the ground running with each new company and project.

If you’re curious you can learn about what I do and how I help startup CEOs and founders on my services page.

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