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Scaling Strategy #48 | Managing Growing Pains

by Sam Palazzolo
Sep 20, 2025
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Let me be blunt: growth isn’t just about bigger numbers—it’s about bigger headaches!

Gallup reports only 31% of employees were engaged in 2024, the lowest in over a decade (Gallup, 2025). Meanwhile, Gartner found that employees’ willingness to support change has collapsed from 74% in 2016 to 38% in 2022 (Gartner, 2023). Bain’s research shows only 11% of companies sustain profitable growth over time (Bain, 2017).

I’ve lived this frustration personally: leaders hit the gas on growth, only to discover the engine rattles under pressure. More initiatives, more layers, more meetings—and suddenly complexity suffocates the very momentum you worked so hard to build. That’s the definition of “growing pains.”

So how do you fix it?

The P.A.C.E. System for Managing Growing Pains

Scale doesn’t break because of lack of opportunity—it breaks because of execution drag. The solution is a rhythm that keeps you aligned, energized, and ruthless about focus. Enter my P.A.C.E. model (inspired by Bain’s “growth ↔ complexity” work, Gartner’s participatory change research, McKinsey’s transformation execution insights, and Gallup engagement trends):

  • P — Prioritize Value and Kill Complexity
    Run a quarterly Stop-Start-Simplify review. Sunset 10% of low-value work, merge duplicative projects, and strip away one approval layer per quarter. Complexity kills speed—cut it before it cuts you.
  • A — Align Operating Model and Accountability
    Assign a Directly Responsible Individual (DRI) for every strategic bet. Publish a one-page RACI for interfaces. Clarify end-to-end metrics so ownership doesn’t get lost in the org chart.

  • C — Co-create Change with the Workforce
    Engage 10–15% of employees as shapers and testers. Run design sprints, publish drafts, and reward contributions. Gartner shows this “open-source” approach makes companies 14× more likely to succeed (Gartner, 2022).

  • E — Energize Execution through Engagement
    Install weekly health pulses, run 10-minute “clarity huddles,” and track managerial coaching minutes. McKinsey found that transformation programs that fully complete their initiatives report ~79% success (McKinsey, 2021). Engagement is not a “soft” measure—it’s your execution fuel.

Real World Example

One client hit a wall after doubling headcount. Their leadership team was drowning in approvals, employees tuned out of yet another change program, and managers were too busy firefighting to coach their teams.

We applied P.A.C.E. starting with a Stop-Start-Simplify review. In the first 30 days, we eliminated 12 redundant initiatives (hello AI!), reassigned DRIs for three critical growth projects, and introduced weekly clarity huddles. Within 90 days, engagement pulse scores rose by 17%, and cycle time on customer initiatives dropped by 22%.

This wasn’t about working harder—it was about working with rhythm.

Real Strategies. Real Results.

Growth always, always, always brings pain! But pain is a signal, not a sentence. Leaders who adopt a structured system like P.A.C.E. turn growing pains into proof points of progress. Kill complexity, clarify ownership, co-create change, and keep your people energized—and you’ll discover growth doesn’t have to hurt so bad!

Sam Palazzolo
Real Strategies. Real Results.

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