Preservation of Engineering Culture During Periods of Growth
CASE STUDY
Industry: Software Engineering
Services: Leadership & Team Development, Executive Coaching, Consulting
Client Overview
A software engineering firm specializing in cryptographic and blockchain security had built a strong reputation for tackling complex technical challenges and supporting innovative projects across multiple industries.
After experiencing a solid decade of growth, the company sought to elevate its operations and leadership capabilities to support its expanding vision. They engaged Mike Zusman to help refine their strategic direction and align their leadership structure, enabling them to continue scaling while preserving their engineering-driven culture of excellence.
Client Situation and Challenge
The company had established a solid foundation in its niche, but as the business expanded, they encountered new complexities. Their team of highly skilled engineers found it challenging to shift from operational excellence to a broader strategic perspective required for the next phase of growth.
The company encountered multiple growth challenges after a decade of success:
Leadership Maturity and Business Alignment: The organization lacked the leadership maturity and strategic business alignment required to overcome growth plateaus and continue scaling effectively.
Trust and Communication Issues: A lack of trust in leadership and ineffective communication between engineering and executive teams led to misalignment and impacted overall morale.
Hiring and Retention Difficulties: Persistent challenges in hiring and retaining senior leaders, particularly in key leadership roles such as Engineering, Sales and Finance, resulted in high turnover and frustration.
Goal Setting and Accountability: The company struggled with setting clear goals and maintaining accountability, which hindered operational efficiency and team cohesion.
Engineering Leadership Frustration and Mistrust: Frequent turnover in leadership positions and repeated hiring mistakes caused frustration and distrust among engineering teams, impacting their motivation and performance.
Market Pressures and Low Morale: Shifting market dynamics increased competition, exacerbating existing internal challenges and leading to low morale within critical teams.
Leadership Turnover Impact on Team Dynamics: High leadership turnover in key areas resulted in disrupted team dynamics, further complicating the company's growth efforts and contributing to burnout among the engineering leaders.
These complex challenges prompted the company to seek Mike Zusman’s expertise to build leadership maturity, restore trust, and realign the organization for sustainable growth.
Solution
Our approach to this engagement was designed to tackle the company's unique challenges while fostering leadership maturity and preserving their strong engineering culture. We also wanted to instill a system of accountability and prepare the engineering teams to achieve much higher levels of performance on the measures most directly tied to company success.
Our strategy unfolded over three key phases, each aimed at addressing critical areas for growth and development.
Phase 1: Strategic Planning & Team Dynamics
We began by facilitating a comprehensive strategic planning session with the leadership team. We started the assessment with a 5 Dysfunctions of a Team survey, based on the best-selling book The Five Dysfunctions of a Team by By Patrick Lencioni.
We conducted a detailed SWOT analysis, which uncovered issues in trust and communication.
We also conducted a financial modeling workshop to redefine key metrics and develop a mature financial model. By integrating this model with strategic planning, we provided a solid foundation for improved business alignment and operational transparency.
Part of the financial modeling method was to introduce the Labor Efficiency Ratio, shifting the focus from traditional metrics to a more nuanced view of operational efficiency. This allowed the leadership team to make more informed decisions and align resources with business objectives.
To demonstrate effective team dynamics, we led scenario based coaching techniques to shift behaviors and highlight how high-performing teams address conflicts and resolve issues collaboratively. This exercise helped leaders embrace direct communication and fostered a more cohesive team environment.
Phase 2: Leadership Development for the Assurance Team
In this phase, we focused efforts with the Software Assurance Team, which provides tailored assessments for the software development life cycle (SDLC). The Assurance practice was facing significant challenges due to leadership turnover and low morale.
We delivered a tailored coaching and mentoring program for the interim leader, who had transitioned from an individual contributor role. Our intensive support enabled this leader to effectively manage the team and build confidence in their new position.
We also restructured this team’s meeting rhythms and introduced several meeting best practices that improved productivity and cross-functional communication, helping the team align their efforts with broader business goals.
Introducing the principles of Extreme Ownership for Engineers, we encouraged team members to take proactive responsibility for their outcomes, fostering a sense of ownership and empowerment.
We facilitated open discussions on morale issues, guiding engineering leaders on how to communicate these concerns to senior leadership without fear of conflict. This key step significantly improved trust and transparency within the team.
Phase 3: Executive Coaching for Business Alignment
In the final phase, we continue to work closely with senior leadership to bridge the communication gaps between executives and engineering teams. Our coaching sessions focused on strategic decision-making and effective communication, helping leaders understand the technical challenges their teams face and aligning their responses accordingly.
We are also providing targeted coaching to the VP of Operations, who was adjusting to leading in a highly technical environment. Our guidance emphasized the importance of understanding the “why” behind decisions and collaborating with engineers to co-create solutions, ensuring alignment and buy-in from technical teams.
Through scenario-based coaching, we are helping senior leaders develop constructive responses to feedback from engineering teams, preventing the reactive “wrist-slapping” that had previously undermined trust and innovation.
Building High-Performing Teams and Onboarding New Hires
Throughout the engagement, we emphasized the traits of high-performing teams: trust, open communication, commitment, accountability, and focus on results. By working with both the engineering and leadership teams to cultivate these traits, we helped the company build a cohesive, effective organization capable of sustaining growth and innovation.
In addition to coaching and mentoring the interim leader, we played a key role in onboarding a new VP of Sales and Director of Engineering. This involved guiding the new leaders through the company’s unique culture, establishing effective communication channels, and setting clear expectations for their role.
During the onboarding process, we introduced structured mentorship programs and regular feedback sessions, ensuring new leaders quickly adapted to the company’s engineering-driven environment and contributed effectively from the start.
By fostering collaboration between sales and engineering, we helped bridge gaps and align both teams toward shared business goals.
Results
Our engagement delivered significant business outcomes, transforming both leadership dynamics and operational performance:
Improved Leadership Alignment and Communication: We helped the leadership team develop a clearer strategic vision and establish effective communication channels between executives and engineering teams. This alignment fostered a cohesive organizational culture, reducing internal friction and enhancing decision-making.
Increased Team Morale and Retention: Through targeted leadership development and team support, we revitalized the Assurance Team, reducing burnout and turnover. Our efforts restored trust and improved morale, resulting in a more engaged and productive workforce.
Operational Efficiency and Financial Maturity: By introducing new financial metrics and refining their operational strategy, we enabled the company to track and optimize resource allocation, leading to more efficient operations and better business outcomes. As a result, their labor efficiency ratio improved.
Contributed to Key Leadership Hires and Successful Onboarding: We were instrumental in onboarding two critical hires—a new Engineering Director and VP of Sales—helping them integrate effectively and align with company goals.
Our comprehensive coaching and alignment efforts positioned the company to break through growth barriers, setting the foundation for sustained expansion and innovation without sacrificing their core values.
Overall, our partnership empowered the company to navigate complex challenges, build high-performing teams, and continue their growth journey with confidence and clarity.
