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Why Technology Companies Struggle With Strategy Execution During Rapid Growth

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Why technology companies struggle with strategy execution during rapid growth: coordination mechanisms take longer to build than headcount.

What it means in practice

Rapid growth compresses the time a technology company has to build the coordination mechanisms that strategy execution actually depends on. A company doubling headcount within a year is adding people faster than it can build the shared understanding, cross-functional relationships, and communication habits that made execution feel straightforward when the team was smaller. The strategy itself may be entirely sound and clearly communicated at the leadership level; what breaks down is the translation of that strategy into consistent behaviour across a rapidly multiplying set of teams, each operating with a slightly different, secondhand understanding of what the strategy actually means for their specific work.

Why it happens

Beer and Eisenstat’s research specifically highlights poor vertical communication as one of the silent killers — not an absence of communication, but a gap between what senior leadership believes it has clearly conveyed and what actually reaches and is understood at working level. This gap tends to widen with speed: a company adding people quickly has less time per person to build the layered, repeated communication that actually transfers strategic understanding, as opposed to a single announcement or all-hands presentation that conveys the words of a strategy without necessarily conveying the reasoning behind it clearly enough for people to apply it to decisions the strategy did not explicitly anticipate.

Amy Edmondson’s research on psychological safety adds a further dimension to why this gap persists invisibly. Her finding — that team psychological safety, not team efficacy, predicts whether people raise problems and learn from them — implies that even where a strategy genuinely has not landed clearly, the people who noticed the gap may not feel it is their place to say so upward, particularly in a fast-growing company where new hires are still establishing their standing and senior leadership can feel more distant with each additional layer of hierarchy growth adds. The silence this produces is easy to mistake for understanding, since a leadership team rarely receives active signals that its strategic communication has failed — it simply does not receive confirmation that it succeeded, and the two are easy to conflate from the inside.

Where this varies

The gap tends to be narrower in companies that have invested deliberately in manager-level communication — equipping team leads to translate strategy into what it means for their specific area, rather than relying on top-down, one-time communication alone — and wider in flatter organisations that have removed management layers without replacing the coordination function those layers used to serve. It is also wider during periods of major strategic change, since an entirely new direction requires far more repeated communication to genuinely land than a continuation of an already well-understood one.

It is also worth noting that the gap between stated strategy and desk-level, or team-level, behaviour is not necessarily a sign that people are ignoring leadership. In most cases, teams are behaving entirely rationally given what they understand of the strategy and what they are actually measured on — which means the fix, where one exists, usually lies in re-examining that understanding and that measurement, rather than in simply asking people to try harder to align.

Distributed and remote-first companies experience a distinct version of this gap. Physical proximity has historically carried a substantial share of informal strategic communication — the incidental conversation, the overheard context, the visible body language in a room — none of which a fully remote or widely distributed team can rely on to the same degree. Companies growing rapidly while also distributed across locations or time zones face both pressures simultaneously, and the coordination mechanisms that would ordinarily have more time to develop have correspondingly less natural opportunity to form at all.

Where this shows up

This perspective is written with technology companies in mind. It sits within the Professional and Knowledge-Based grouping, and the questions it raises recur in other sectors too.

Questions worth considering

  1. If ten people across different teams in this company were asked to explain the current strategy in their own words, how similar would their answers be?
  2. Has strategic communication in this company kept pace with headcount growth, or has the same volume of communication been spread across an increasingly larger group?
  3. Which of Beer and Eisenstat’s “silent killers” — unclear strategy, conflicting priorities, poor vertical communication — feels most present in this organisation right now?

Your team is facing similar challenges?

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Sources

Michael Beer and Russell A. Eisenstat, “The Silent Killers of Strategy Implementation and Learning,” Sloan Management Review (now MIT Sloan Management Review), 41(4), 2000, pp. 29–40.

Amy C. Edmondson, “Psychological Safety and Learning Behavior in Work Teams,” Administrative Science Quarterly, 44(2), 1999, pp. 350–383.

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Frequently Asked Questions

Growth is not inherently the cause, but it compresses the time available to build the coordination and communication mechanisms execution depends on, which is where the strain tends to show up.
Repetition helps, but the research suggests the deeper issue is often translation — helping people understand what a strategy means for their specific decisions — rather than simple frequency of communication.
Because leadership typically experiences its own communication as clear and complete, while the gap only becomes visible by directly checking how the strategy is actually understood further down the organisation.
Yes — if people who notice a gap between stated strategy and their own understanding do not feel able to raise it, leadership loses one of the clearest signals that its communication has not landed, and the silence is easy to mistake for alignment.
Not necessarily. The page suggests that in many cases teams are behaving rationally given what they understand of the strategy and what they are actually measured on. The gap points to the understanding and the measurement, rather than to a lack of effort or willingness to align.
Physical proximity has historically carried a substantial share of informal strategic communication, such as incidental conversation, overheard context and body language in a room. A widely distributed team cannot rely on these to the same degree. When growth and distribution happen together, coordination mechanisms have less time and less natural opportunity to form.
It describes a gap between what senior leadership believes it has clearly conveyed and what actually reaches and is understood at working level, rather than an absence of communication. The page suggests the gap widens with speed, since a single announcement conveys the words of a strategy without necessarily conveying the reasoning needed to apply it to unanticipated decisions.
The page suggests it does. It tends to be narrower where companies have invested in manager-level communication, so team leads translate strategy for their area, and wider in flatter organisations that removed management layers without replacing their coordination function. It is also wider during major strategic change than during continuation of a well-understood direction.