Scaling A Startup: Builders & Doers

A few of my client CEO's have hired poorly because they didn't recognize the difference between someone who's built something from scratch vs someone who's come in and executed and grew an existing function well. In the context of business operations, I prefer to think in simple terms: There are people that do and people that build. You’ll need both. It’s your responsibility as the entrepreneur to understand which one of the two you need, in what proportion, and at what time. The proportion of builders to doers within the business will change over time. If you’re in the phase of building the foundation of your business, you need BUILDERS. If you’re in the phase of the business where your foundation is built and you’re focusing on execution, you need DOERS.

Builders

Builders commonly distinguish themselves with technical experience and knowledge coupled with visionary qualities. They select and implement systems. They’re able to design and deploy procedures and processes. Builders will also train others to operate the systems and follow the processes they’ve implemented. The technical and visionary qualities help them predict problems and prevent them. They don’t know it all, but they have a plan of action and know how to address uncertainties. Builders create the environment in which the vision can be executed. Builders are better suited in the C-suite positions in early stage companies or completely disfunctional late-stage companies.

Doers

Doers execute. They can navigate and operate existing systems, follow existing procedures, and complete tasks. Doers are better suited in staff or management roles. Doers operate in the environment that Builders have built for them. Doers are well suited in the C-suite positions in scaling and late stage companies; they're also great individual contributors in functional areas of the business.

The cost of employing builders is higher than employing doers. It’s a matter of supply and demand. Builders are challenging to find and their skills as a builder are challenging to prove, unless significant amount of time is spent testing and evaluating their skills. Many years of experience alone is not a sufficient factor in determining someone’s abilities as a builder. Why? Because building infrastructures (systems, processes, teams) is an infrequent occurrence in any one organization and most employees don’t get the experience to build them, but rather have operated existing infrastructures for a long time. Most employees are doers. Builders must have experience, but it has to be the right experience. 

Doers are, as expected, less expensive because the roles they’re hired into are already designed, structured, and clearly defined by the Builders. You can train people to perform the Doer roles they’re hired into. That increases supply and, therefore, decreases the cost of employing Doers.

Why Does It Matter

So, why does it matter if you hire a builder or a doer if you’re a small business or a young startup and you “just need to get stuff done” so that you can focus on launching your product successfully and get it to market or just serve your customers? Your vision of the business is what determines whether you need to build or simply do. If you’re building a business that inherently has a small scope (i.e. one product or a short life cycle) then you don’t need people that build, you just need people that do. In this instance you can deploy simple solutions. Under these circumstances, you don’t need to build sophisticated infrastructures and can get away with one or two Doers. If you're building a business that you hope will be big: then you need to build systems and processes upon which the foundation of future success will stand.

Startup founders often disregard the difference between Doers and Builders because the need for people is often dictated by a task at hand, tasks require people that do. Designing an infrastructure that funnels a recurring task into a pre-determined process and is then handled by a pre-determined system is a job for a person that builds. Again, in this instance, the vision for the business determines whether you need Builders or Doers.

Key Takeaways

There are Builders and Doers

• You’ll always need both

• Plan and know your needs ahead of time

• The proportion of Builders to Doers in your business will change over time

• In early phases or at key times in your business, emphasize Builders

• In later phases or when focusing on streamlining the business, emphasize Doers

• Builders are more expensive than Doers

Example of a Doer at Work

• Doers have the following qualities:

• Task oriented

• Organized

• Trainable

• Loves structures and procedures

• Likes clear direction

• Doesn’t like ambiguity and lack of direction

• Loves to-do lists and timelines

• Loves on-going steady workflows and predictability
  

Bookkeepers are a great example of Doers. Bookkeepers are vital to financial infrastructures. They record and classify transactions and have clear direction and predictability in their workflow. They can also perform the close process and produce financial statements once the systems and processes are deployed.

Example of a Builder at Work

• Builders have the following qualities:

• Visionary

• Predicts and prevents future problems and issues

• High technical abilities

• Operates well in ambiguity

• Self-sufficient and autonomous

• Prefers partners and “sounding boards” to direction

• Project oriented

• Works well with dysfunctional workflows and deadline environment

Controllers are a great example of Builders. Be aware that the Controller role often turns into a Doer role later in the lifecycle of the business, but the Controller should be the one in charge of identifying and deploying systems and processes. They’re the ones to select the right systems such as accounting software, AP and AR systems. And they can design quality control procedures. They continuously find efficiencies and have a plan for upcoming infrastructure updates and improvements.

Word of Caution

If you realize you need a builder, make sure that you hire a builder, not a doer. 

Let’s evaluate a typical real-world scenario to show how you may end up hiring a Doer instead of a Builder to build your financial infrastructure:

Employee X has graduated college and is hired into an established organization with pre-established systems and processes and experienced people in place that are trained to operate that specific infrastructure. Employee X then learns those systems and processes and how to operate them without the understanding for underlying reasons for those systems and processes having been deployed in the first place. Employee X is later promoted into management and C-suite positions and repeats the same learning cycle in a few organizations over a decade or two. 

Employee X is now in your office interviewing for the position of a Controller or CFO. Employee X isn’t a Builder, he’s a Doer. Employee X can show you what he saw done in other companies, but he can’t tell you what the right solution is for YOU. Why? Because Employee X never built an infrastructure and has only had superficial encounters with building them. He has a lot of experience operating existing financial infrastructures. 

Employee X may still be a great Controller or CFO IF that role is designed as DO role, rather than a BUILD role. That means you need to be the builder, and you need to have the technical knowledge and foresight to prevent future problems. If you think you can build your financial infrastructure on your own, then you should hire Employee X. If you don’t think you can build it on your own, then you need to keep looking.