Before You Scale the Business, Fix the People Story
- Rahul Kulkarni
- 11 hours ago
- 3 min read
Most businesses don’t stall because of strategy or capital. They stall because the people story quietly breaks before the growth story begins.

Every Indian SME founder knows this moment. Orders are coming in. Customers want more. The market feels ready. And yet, something inside the organization feels… off. Meetings take longer. Decisions get reworked quietly. Good people seem tired, not lazy. Managers appear busy, but outcomes feel thinner. Nothing is technically broken. But momentum feels fragile.
Over the few quarters, while working closely with growing Indian businesses, founders, second-generation owners, leadership teams, one pattern has shown up again and again: Growth doesn’t derail because leaders make bad decisions. It derails because people dynamics change faster than leaders notice. Before scaling begins, there is always a people story unfolding underneath.
Like Families
Most Indian SMEs start as families … literally or emotionally. Early employees grow with the founder. Roles are fluid. Trust is personal. Everyone “figures it out together.” But growth changes the social contract.
Suddenly, the salesperson becomes a manager. A peer becomes a boss. The founder steps back or tries to and the team doesn’t quite know how to relate anymore. People don’t resist change. They resist unclear change. When roles evolve faster than capability, confidence quietly erodes. Managers hesitate. Team members second-guess authority. What once felt like closeness now feels awkward. This is not failure. It’s a transition most businesses underestimate.
The Gap
Founders speak in vision. Teams hear consequences. A town hall about “new direction” feels energising to leadership — but unsettling to employees who are trying to decode what it means for deadlines, targets, and job security. People nod. They clap. And then they return to their desks with five interpretations of the same message.
Soon, employees spend more energy interpreting leadership than executing work. This is where alignment quietly dies … not in conflict, but in confusion.
Like Favouritism
Ask most founders if they reward merit, and they will say yes … honestly. Ask teams the same question, and you’ll often hear a pause. Who gets access easily? Whose mistakes get forgiven? Whose opinions carry weight without explanation? When criteria remain invisible, teams stop competing on performance and start competing on proximity. This doesn’t create rebellion. It creates silence.
People play safe. High performers disengage quietly. Politics replaces ownership. Favouritism is rarely intentional but perception does the damage anyway.
The Pace
Many founders succeed because they move fast. Decisions are quick. Energy is high. Urgency is default. But what feels natural to a founder often feels overwhelming to a team. When everything is urgent, nothing is thoughtful. When speed becomes identity, reflection disappears. Over time, teams stop thinking ahead and start reacting.
Creativity becomes shallow. Initiative becomes risky. The business becomes good at firefighting and bad at building. Ironically, the very pace that enabled early growth begins to limit the next phase.
Kindness Control
Modern micromanagement doesn’t look harsh. It looks caring. “Just loop me in.” “I’ll quickly review.” “Stay reachable.” But when every decision feels provisional, autonomy evaporates. People don’t relax on leave. Managers don’t fully own outcomes. Teams stay mentally “on” … even when they’re off. The cost isn’t workload. It’s psychological fatigue. And tired teams don’t scale.
Invisible Power
Every growing business has two structures. The org chart — and the real influence map. Long-time loyalists. Trusted insiders. External advisors. Family voices. Star performers. When unofficial influence overrides formal roles, clarity collapses. People don’t know who to listen to. Managers lose authority. Decisions feel unstable. Systems don’t break loudly. They bend quietly.
Growth Begins
Here’s the uncomfortable truth: Most growth derailers are not operational. They are emotional and behavioural. Before you add headcount, ask: Are roles clear and respected? Is trust visible or assumed? Does speed allow thinking? Are boundaries stable? Is authority aligned with accountability? Growth doesn’t demand perfection. It demands awareness.
Forward Look
Fixing the people story doesn’t require dramatic interventions. It starts with slowing down to observe. With naming what feels off. With building clarity before adding complexity. The strongest businesses I’ve seen didn’t scale because they pushed harder. They scaled because they repaired trust, reset roles, and redesigned leadership behaviour before growth forced the issue.
Before you scale the business fix the people story. Everything else follows.
(The writer is Co-founder at PPS Consulting. He helps growth-stage leaders design systems where people and performance evolve together. Views personal.)

