2 days ago
Why Hiring Executives First Is Killing Your Scale-Up
Do you hire executives or front line people first?
Jim Collins' insight from "Good to Great" remains foundational: Getting the right people on the bus is fundamental to business success. But Theo Saville, CEO of CloudNC (providing AI solutions for Computer Aided Manufacturing) adds nuance from his company's nine-year journey: "You can have an army of geniuses. But if you don't have good product-market fit, you won't make any money. It's actually the most important thing in business. However, once you achieve product-market fit, the right people become your scaling superpower.'
After solving deep technical problems to create a product which matched market demand, CloudNC has been doubling revenue every quarter, largely through a contrarian US expansion strategy that hired proven performers first rather than executives. Saville's core insight challenges conventional wisdom: The traditional approach of hiring executives first to build new teams or functions is "a terrible idea" - instead, "hire the people that produce the actual frontline value first."
Saville's point of view is contrarian but has some logic - front-line first hiring creates healthier organizational dynamics that prepare the engine of growth more effectively than traditional hierarchical approaches.
Why Front-Line First Beats Executive First When Scaling or Entering New Markets
Once you have product-market fit, speed of execution becomes critical. Yet most companies fall into the traditional executive-first trap. As Saville explains: "One month to pick the search firm, three to six months for the search... then maybe 12 months later, you have the frontline workers actually doing the work. And what if you got that hire wrong? You spent 50 grand on a search firm, huge salary, big exit package. It is a terrible idea."
The organizational readiness cost extends beyond time and money. During this hierarchy-building process, the invisible dynamics that drive growth remain unprepared. Companies are essentially building management structures before they have the operational foundation to require them.
CloudNC took a different approach by creating new functions and geographies with proven front line workers who could start generating value and strengthen organizational dynamics. According to Saville when hiring their sales team: "Almost every single one of our sales people made it. They nearly all paid for themselves within 30 days compared to the industry standard of 12 months.'
This approach wasn't just about individual performance. Front-line performers who fit culturally strengthen the organization's growth engine, while poor fits are naturally rejected. As Saville notes, "the company, almost like an immune system, tends to reject them." This creates a self-reinforcing cycle that builds organizational strength from the ground up.
The A Method: A 4-Step System for Finding Proven Performers
CloudNC's approach stems from applying "The A Method for Hiring" framework from Geoff Smart and Randy Street's book "Who." This systematic approach has four key steps:
Step 1 - SCORECARD: "I write deliverables that only a top 10% candidate could achieve - then find somebody who can deliver on that" explains Saville. The key is defining specific, measurable outcomes for any function, not just creating job descriptions.
Step 2 - SOURCE: Identify proven performers. Saville's approach: "We're going to find people who work at companies that sell to our target buyers directly... and offer them an easier product to sell with bigger commission potential."
Step 3 - SELECT: Again Saville's approach: Focus on proven track records over potential. "I want to see that they have achieved it more than once in their career. Because if I'm hiring... people who've done it three times before, chances are they're going to be able to do it a fourth time as well."
Step 4 - SELL: Apply the Five F's framework to close top performers.
The Five F's: What Top Performers Really Want
The A Method's "Five F's" framework identifies what proven performers care about when switching jobs:
Fit: Matching their goals with company vision - letting them be "A players" where they can excel
Family: Making the transition work for their personal situation and loved ones
Freedom: Saville notes "A players don't like being micromanaged. They look for positions where they'll be given space to excel"
Fortune: Competitive compensation that reflects their proven value
Fun: Engaging, challenging work environment with meaningful outcomes
This framework was prescient. Written in 2008, these Five F's to attract 'A Players' have become increasingly aligned with what today's workforce prioritizes as found in surveys such as the Deloitte Global Gen Z and Millennial Survey.
Using Smart and Street's methodology, CloudNC addresses these priorities through what Saville lists as 'premium pay, autonomy, clear challenging outcomes, and an entrepreneurial culture for people used to working in an environment without much bureaucracy." This approach creates what Saville describes as the scaling advantage: "You can keep recycling that money into more hires and grow grow grow."
The Future of Strategic Hiring
The invisible advantage of front-line first hiring extends beyond revenue acceleration - it prepares the organizational engine for sustainable growth by building the right internal dynamics from the start. However, Saville's approach is expensive as you are paying for proven talent. Whilst more difficult, 'hire attitude, train skills' can be an alternative approach - more risky but lower upfront cost.
Whichever approach is taken, it is necessary to identify core value-creating roles, define specific outcomes and ensure new hires strengthen rather than weaken the organization's growth engine. In an era where scaling speed often determines market success, the companies that master front-line first hiring may find a scaling edge when growing or entering new markets.
