Most scale-up firms struggle, and a large percentage fail outright.  Many of the most common reasons for their failures can be directly linked to poor leadership, leading to financial losses, missed opportunities, and damaged reputations.  That’s why building a strong executive team is so important.  As an executive coach, I have worked with numerous leaders trying to recruit, develop, and retain senior leaders who can beat the odds and succeed when so many fail.  CEOs of scale-ups can turn to an unlikely source for lessons for scaling their companies, the United States Army during the early days of the Second World War.  General George C. Marshall provides one of history’s greatest examples of leading large-scale organizational growth.  His ability to identify, promote, and empower talented leaders under extreme pressure offers important lessons for CEOs leading fast-scaling organizations today.

Here are six key takeaways from Marshall’s leadership approach that scaling CEOs can apply to their own companies:

1.  Prioritizing Talent Over Tenure

When the U.S. entered World War II, its military was vastly unprepared.  The Army alone would grow by 4000% in under five years.  One of Marshall’s most important actions was to transform the leadership ranks.  Many peacetime leaders were ill-suited for the war, so Marshall often bypassed senior officers in favor of younger, more capable leaders.  He believed that ability, not seniority, should dictate leadership roles.  He identified and promoted dynamic leaders such as Dwight D. Eisenhower, Omar Bradley, and George Patton, who went on to excel under the pressures of wartime command. 

Lesson for CEOs: In a high-growth company, leaders can’t afford to promote based on tenure.  Just because an executive has been with a company from its early days does not mean they are competent to face the complexities of an organization driving to scale.  If executives or managers are slowing down decision-making, resisting necessary changes, or failing to delegate effectively, they must be replaced with those who can scale at the speed the company demands.  We must identify and elevate those with the capability to lead at the next level, regardless of how long they’ve been in the company.  Marshall’s example teaches us the importance of making tough personnel decisions early to avoid stagnation and ensure efficient decision-making. This approach will enable CEOs to make the right decisions for their companies, fostering a culture of confidence and competence.

2.  Responding to Failures Decisively and Appropriately

All the leaders Marshall promoted or inherited experienced some degree of failure.  Some of these failures revealed fundamental competency gaps that required Marshall to remove leaders from battlefield commands.  Other failures revealed weaknesses that could be remedied through reassignment and rehabilitation rather than removal.  Marshall never allowed his personal feelings toward leaders to influence these decisions—on several occasions, he removed close colleagues and protégés.  Marshall was ruthless in cutting through bureaucracy and inefficiency.  He removed people and processes that impeded change or slowed growth. 

Lesson for CEOs:  Leaders will get in over their heads.  Sometimes, failures will reveal unrecoverable deficiencies.  In those situations, CEOs must be willing to act quickly to terminate poor performers.  Other failures (even significant ones) expose weaknesses that can be remedied through focused development or role changes.  In those cases, CEOs need to provide appropriate support to address the flaws and restore confidence. Proactively managing failures will prepare CEOs for the challenges of scaling, ensuring they can respond decisively and appropriately.

3.  Developing Leaders Who Can Operate Autonomously

Marshall understood the importance of empowerment and accountability.  He recognized that the size and complexity of the rapidly expanding Army required leaders capable of operating autonomously in the field, so he developed officers who make independent decisions, adjust strategies and tactics in response to the situations they encountered, and execute effectively without constant direct oversight.  He empowered them by providing clear objectives and trusting them to execute.

Lesson for CEOs: As a company scales, leaders cannot afford to make every decision themselves.  CEOs must build a strong leadership bench, ensuring that key executives and managers can operate with autonomy. This means clearly defining the company’s vision, setting high standards, and allowing team members to execute without unnecessary interference.  This approach fosters a culture of trust and empowerment within the company. By developing autonomous leaders, CEOs can instill confidence in their team’s capabilities, fostering a culture of trust and empowerment.

5.  Creating a Culture of Relentless Adaptation

Marshall understood that the battlefield—and the world—was changing rapidly.  He sought out officers who were flexible, innovative, and willing to adapt to new challenges.  He also emphasized war-gaming and scenario planning to ensure his forces were prepared for a range of outcomes.

Lesson for CEOs: The business environment is constantly evolving, especially in industries experiencing rapid growth.  CEOs must play a key role in instilling a culture of agility and adaptability within their teams.  This includes encouraging innovation, staying ahead of market trends, and ensuring the company can pivot quickly when needed. By actively fostering such a culture, CEOs can significantly influence the company’s ability to navigate the challenges of scaling, just as Marshall did during World War II.

6.  Leading with Integrity and Clarity

One of Marshall’s most defining characteristics was his unwavering integrity.  He did not seek personal recognition but instead focused on his mission: ensuring the U.S. military was prepared to win the war.  He communicated with clarity, ensuring that everyone—from the President to front-line soldiers—understood the objectives and expectations.

Lesson for CEOs: Scaling a company requires leadership that is mission-driven, transparent, and deeply committed to the success of the organization rather than personal ambition.  Clear communication and a strong ethical foundation are critical in maintaining trust as the company grows and faces increasing complexity.

Conclusion

Building an executive team that can lead a company to scale won’t guarantee success, but not doing so will almost guarantee failure.  Marshall’s actions highlight the importance of hiring the right people, anticipating setbacks and failure, and empowering them to act.  CEOs can navigate the challenges of scaling with the same effectiveness Marshall demonstrated during World War II.  Just as Marshall built a military that was ready to lead on a global stage, today’s CEOs can build teams that can scale and thrive in competitive, high-growth markets, leading to unprecedented success.