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The Leadership Bottleneck: Why Your Company Can't Scale Without Developing Your Managers

By Justin Reinert

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As a founder or CEO, there’s a moment when everything starts to feel… stuck.

 

You’ve hired smart people. You’ve got strong product-market fit. Revenue is climbing. But progress starts to slow. Decisions take longer. Communication breaks down. You’re suddenly in meetings you shouldn’t be in, answering questions others should be able to handle. And you start to wonder:

 

“Why can’t my team just run with it?”

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The answer often isn’t strategy. It’s not effort.

It’s a leadership bottleneck.

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And if you’re serious about scaling, it’s the single biggest constraint you need to remove.

 

What Is the Leadership Bottleneck?

 

The leadership bottleneck happens when a company’s growth outpaces the capability of its management team. Work gets clogged at decision points, clarity disappears, and execution slows—not because your people don’t care, but because they haven’t been equipped to lead at the next level.

 

Here’s how you’ll know you’re hitting it:

• Your managers aren’t making decisions without your input

• Team performance is inconsistent across departments

• Communication gaps keep causing delays

• You’re constantly being pulled into tactical firefighting

• High performers start leaving—or worse, quietly disengage

 

It’s not a systems problem. It’s a leadership gap.

 

Why It Happens in Growth-Stage Companies

 

This challenge is especially common in companies scaling from 20 to 100 employees. Why?

 

Because in the early days, your best individual contributors often get promoted into management roles—not because they’ve trained for it, but because they’ve earned your trust.

 

The problem? Leading people is a completely different job.

 

But most growing companies don’t have the infrastructure to support that transition. No leadership framework. No consistent expectations. No training. Everyone’s figuring it out on the fly.

 

And founders stay overly involved—because they’re the only ones who can still “get things done right.”

 

It’s a recipe for burnout, for you and for your team.

 

The Hidden Cost of the Bottleneck

 

You might not see the cost on your P&L, but it’s there.

 

Untrained managers slow everything down:

  • Execution slows. People don’t have clarity on priorities, so work gets stalled or done twice.

  • Engagement drops. Teams without good managers are 4x more likely to be disengaged.

  • Culture drifts. When leadership styles vary wildly, values become vague and diluted.

  • Founders burn out. You’re dragged into solving problems others should be solving.

 

Most importantly, it puts a ceiling on how far and how fast you can grow.

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The Fix: Develop Your Managers Before You Need To

 

The good news? You can break the bottleneck.

Here’s how to start:

 

1. Define What “Good Leadership” Looks Like

 

Don’t leave it to chance. Create a simple, clear leadership framework based on how you want decisions made, people led, and results delivered at scale.

 

2. Train the Right Skills

 

Focus less on technical skills and more on:

  • Emotional intelligence

  • Delegation and trust-building

  • Coaching and feedback

  • Strategic communication

These are the levers that unlock team performance.

 

3. Build Real-Time Feedback Loops

 

Give your managers a way to regularly reflect, get feedback, and adjust. Leadership isn’t one-and-done. It’s learned over time.

 

4. Model It at the Top

 

If you want your leaders to grow, they need to see it in you. Show your own development. Be open about learning. Celebrate leadership wins.

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Your Move

 

If you’re starting to feel the strain—if you’re still making too many decisions, attending too many meetings, or watching high performers flounder in new roles—you’re in the bottleneck.

 

But here’s the opportunity:

Companies that invest in leadership early scale smarter, faster, and stronger.

 

So ask yourself:

 

Are your managers ready to lead the next phase of your company’s growth?

 

If not, now’s the time to build that muscle.

 

And if you want help building a leadership engine that scales with your business, let’s talk.

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I'm Justin Reinert, Principal & Founder of Performance Accelerated Learning.

I have led Talent Development at organizations as big as HSBC and Oracle, yet have had the most fun winning awards for the talent programs and teams I've built at smaller high-growth firms.

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I've spent over 20 years developing leaders in companies of all sizes, and I have made the most impact at small scaling companies. One of my clients grew from just 15 to over 30 in less than two years!​

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I work with organizations to help them achieve similar results.

Ready to grow your leadership bench?

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Benefits You Can Expect

Increased Performance

 

Research shows a 415% annualized ROI on developing leaders as a result of its impact on decision making and team performance.

Reduced Turnover

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Employees led by effective managers are 3x more likely to stay with their company.

Increased Profitability​

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companies with higher employee engagement levels experience 21% higher profitability

Testimonials

"Transformative Experience"

“Working with Justin has been an incredibly transformative experience, both professionally and personally. When I first transitioned from an individual contributor to a director role, I faced a steep learning curve—juggling people management, leadership, and new responsibilities. Justin played an instrumental role in helping me navigate this transition smoothly.”

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Calli W.

"Expert Knowledge"

“Justin’s ability to create an authentic environment for learning and development, coupled with his expert knowledge and corporate experience fosters an environment for lasting change for any leader or organization. ”
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Rachael J.

"Accomplished Objectives"

"He listened to our needs and effectively delivered a workshop which accomplished our objectives. Even after the event we noticed his workshop introduced some common language which has lived on beyond the engagement. Justin is an engaging facilitator who listens to his clients’ needs and delivers."

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Karen O.

How it Works

Step 1: Schedule a Consultation

Let's discuss where you are on your journey and chart a path to grow your leadership bench.

Step 2: Assess & Plan

We'll select an assessment for your people that's aligned to your business and through an initial coaching session with each leader build a plan unique for their needs.

Step 3: Coach & Grow

Once we have a plan we launch into 1:1 coaching and team based development and will reassess along the way.

Ready to Get Started?

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