Operational Scalability: Mike Psenka of Moovila On How To Set Up Systems, Procedures, And People To Prepare A Business To Scale
Hire and Develop Scalable Teams
Action: Build a team that can grow with the company. This means hiring for potential, investing in employee development, and ensuring the team’s size and structure can adapt to the company’s needs.
In today’s fast-paced business environment, scalability is not just a buzzword; it’s a necessity. Entrepreneurs often get trapped in the daily grind of running their businesses, neglecting to put in place the systems, procedures, and people needed for sustainable growth. Without this foundation, companies hit bottlenecks, suffer inefficiencies, and face the risk of stalling or failing. This series aims to delve deep into the intricacies of operational scalability. How do you set up a framework that can adapt to growing customer demands? What are the crucial procedures that can streamline business operations? How do you build a team that can take on increasing responsibilities while maintaining a high standard of performance?
In this interview series, we are talking to CEOs, Founders, Operations Managers Consultants, Academics, Tech leaders & HR professionals, who share lessons from their experience about “How To Set Up Systems, Procedures, And People To Prepare A Business To Scale”. As part of this series, we had the pleasure of interviewing Mike Psenka.
Mike Psenka is the founder and CEO of Moovila, an award-winning end-to-end project and resource management platform powered by autonomous technology that allows teams to work together more effectively on their critical projects and day-to-day activities. Mike realized there was a real opportunity to bring automation into project management and more easily connect key stakeholders inside and outside of an organization. Moovila is the next stage of digital transformation in work, and the only work management system embedded with a PM coach to identify risks, optimize resource capacity requirements, and mitigate delays. Organizations can accelerate revenue recognition by delivering accurate insights and removing the friction between closed-won deals and the delivery of products and services. In addition to core business strategy and day-to-day operations at Moovila, Mike is heavily involved in platform architecture and design.
Prior to Moovila, Mike founded eThority, an award-winning business intelligence and analytics company. In 2011, he sold eThority to Equifax where he led and scaled the business into a segment leader in the compliance arena for Equifax. He graduated from Princeton University with a degree in Mechanical and Aerospace Engineering, and he holds multiple technology patents related to the products and services produced by his companies.
Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
Well, going waaay back in the Mr. Peabody, wayback machine, I was one of those kids who disassembled items that were in perfectly good working order to understand how they worked. Early on, they ended up in much less “working order” condition. But, after much practice, and admonishment from my parents for breaking household items, I got a knack for the “process” of things. That rolled forward to my engineering degree and a decision to tackle traditionally difficult data processes. I see these data problems as puzzles that have a solution where both user and efficiency can be served.
It has been said that our mistakes can be our greatest teachers. Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
Early on, in my first company almost 30 years ago, we had to ship out our software to our medical university customers on 3.5-inch diskettes. Shipping required a pretty laborious process of printing labels, running a disk duplicator, packing FedEx envelopes, and shipping them out. On two occasions, because of a minor mistake, we had to ship them out again the next night. Having to re-build, re-label, re-copy, and re-ship these quickly instilled the development of a “checklist manifesto” around quality. The lesson was the few extra steps in the quality process ultimately reduced the overall stress level and time wasted in recovering from those errors. It’s hard to get things done under pressure sometimes. But, ultimately, the lessons learned pay off.
What do you think makes your company stand out? Can you share a story?
I’m incredibly proud of our class-leading technology. We do things no other platform in the world can do. And, in some cases, second place isn’t even close. However, what I like to tell customers is our people are the best feature of our platform. This is evident when you talk to our customers. A quick story revolves around one of my senior leaders working through the weekend to correct data for a customer that resulted from a customer mistake, not the software’s mistake. This leader understood how important resolving this issue was for the customer, so they quickly created a solve and worked through the weekend to implement the fix. The customer arrived Monday assuming they’d have to spend the first part of the week resolving the issue, but it had already been remediated for them thanks to our team.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
First, I can see the potential in people even if they can’t see it in themselves. And it’s really gratifying for me to see that growth in people as they realize their true potential. We have people who started their careers in entry-level administrative roles. However, they demonstrated early on that they operated with a level of intelligence, intensity, and care that proved they were ready for each successive step up the ladder to a senior leadership role in a short period of time.
Next, I have two favorite quotes from Oscar Wilde that demonstrate the traits of a successful leader.
“Everything in moderation, including moderation.” To me, this means that sometimes moderation isn’t going to work, and you have to get your entire team focused on the fact that it must be the best in the world — not just good. Because of how crowded our market segment is, we had to create a solution where we could say, “When it comes to project accuracy and automation, no one is even close to us.” And we needed to be able to say that to analysts whom we knew would be able to quickly retort an example if it existed. That created a high bar, and “good enough” would have never worked.
“Life is too important a thing to be taken seriously.” I think it’s important to find humor and lightness in almost everything. We have really stressful jobs, and since drinking on the job is probably not the best way to cope with the stress, laughter is a great day-to-day remedy.
Leadership often entails making difficult decisions or hard choices between two apparently good paths. Can you share a story with us about a hard decision or choice you had to make as a leader? I’m curious to understand how these challenges have shaped your leadership.
In my opinion, the statement that encapsulates the most difficult challenge of growing an early-stage business was written by Don Schlitz and made famous by Kenny Rogers: “You gotta know when to hold ’em and when to fold ‘em.”
Tenacity and hard work are incredibly important to overcome obstacles that have stopped others before you. And many times, success is just beyond that demanding obstacle. However, sometimes the problem you are holding onto fiercely is actually an anchor racing to the bottom of the sea, and the noble goal of “never letting go” looks more like insanity.
We had to make a pivot several years back around our target markets and the value proposition of our platform. This change was scary and challenging for the team. There was a lot of validation for where we were at that time and the success we were having. However, we had to have the courage to realize that ultimately that path would not get us to where we wanted to be. It turned out to be the right choice. But, we had to walk away from some really hard and somewhat successful work to create the bigger opportunity.
Thank you for all that. Let’s now turn to the main focus of our discussion about Operational Scalability. In order to make sure that we are all on the same page, let’s begin with a simple definition. What does Operational Scalability mean to you?
Operational scalability can be understood as equipping an organization with the ability to efficiently manage an expanding workload without compromising performance or losing the quality of service. It’s not just about adding more resources to handle more work; it’s about smarter, more strategic growth that leverages technology to enhance the capacity of the current team.
Which types of business can most benefit from investing in Operational Scalability?
Operational scalability is a critical attribute for virtually any organization looking to grow, adapt to market changes, and maintain or enhance service quality over time. However, certain types of organizations might find operational scalability particularly beneficial due to the nature of their operations, growth trajectories, and market demands. A few that can readily find benefit:
MSPs (Managed Services Providers) — Particularly those offering IT, cybersecurity, and cloud services, need scalable operations to efficiently manage an expanding clientele and rapidly evolving technology landscapes without sacrificing service quality.
Manufacturing & Supply Chain — Manufacturers and supply chain organizations are increasingly adopting smart technologies to enhance efficiency and productivity. Scalable operations enable them to adjust production levels, manage complex supply networks, and incorporate new technologies like IoT and AI without major disruptions.
B2B SaaS Companies — Fast-growing tech companies often experience rapid growth and need to quickly adapt to changing technology and customer demands. Scalability allows them to manage increased user loads, roll out new features, and enter new markets without a proportional increase in costs or resources.
Why is it so important for a business to invest time, energy, and resources into Operational Scalability?
The list is long. But there are major benefits that can provide a distinct advantage:
- Efficiency and Cost Savings: Scalable operations often mean organizations can handle increased workloads with minimal additional costs, improving profitability.
- Agility and Competitiveness: Scalable organizations can quickly adapt to market changes and customer demands, keeping them competitive.
- Improved Customer Experience: Scalability ensures that service quality remains high even as customer bases grow, which is crucial for retention and reputation.
- Innovation and Growth: Organizations with scalable operations are better positioned to invest in innovation and explore new markets, driving long-term growth.
In contrast, what happens to a business that does not invest time, energy, and resources into Operational Scalability?
Organizations that neglect to invest in operational scalability may face a range of challenges and risks, especially as they attempt to grow or adapt to changing markets. The consequences can be severe, impacting nearly every aspect of an organization’s operations, reputation, and financial health. The shortlist for the downside includes:
- Inability to Handle Growth: Without scalable operations, an organization may struggle to handle increased demand, whether it comes in the form of more customers, higher transaction volumes, or larger amounts of data. This can lead to service degradation, customer dissatisfaction, and lost revenue opportunities.
- Reduced Competitiveness: Organizations that cannot scale effectively may find themselves outpaced by competitors who have invested in scalable infrastructure and processes. This can result in a loss of market share and difficulty attracting or retaining customers.
- Operational Inefficiencies: A lack of scalability often means that processes that could be automated or streamlined continue to require manual intervention, leading to higher costs, longer turnaround times, and increased likelihood of errors.
- Customer Dissatisfaction: When demand exceeds an organization’s capacity to deliver services or products efficiently, CSAT scores can plummet. This can manifest in longer wait times, decreased product quality, or unreliable service, ultimately damaging the brand’s reputation and customer loyalty.
- Increased Operational Costs: Non-scalable operations typically result in higher costs as businesses attempt to meet demand through inefficient means, such as hiring more staff than is required or burning out highly qualified talent.
- Stressed Workforce: An organization that isn’t prepared to scale operations efficiently may place undue stress on its workforce, expecting employees to manage workloads that exceed reasonable limits. This can lead to burnout, high turnover rates, and difficulties in attracting top talent.
- Lack of Agility: Organizations that have not developed scalable processes will find it harder to adapt to changes in the market, such as new regulatory requirements, shifts in customer preferences, or technological advancements. This lack of agility can hinder an organization’s ability to seize new opportunities or respond to threats.
Can you please share a story from your experience about how a business grew dramatically when they worked on their Operational Scalability?
In a previous business with a compliance use case, the solution was de-centralized and required a great deal of “one-off” configuration and mobilization. We created a task force to centralize major functions and streamline the mobilization for customers. This resulted in significant increases in both gross margins and customer satisfaction. The latter occurred because we were able to more accurately measure what parts of the mobilization needed tuning because it was now a standard process.
Based on your experience and success, what are the “Five Most Important Things A Business Leader Should Do To Set Up Systems, Procedures, And People To Prepare A Business To Scale”?
1. Develop a Scalable Business Model
Action: Ensure that the business model can accommodate growth without linear increases in costs or resources. It sounds simple in nature. However, it needs to be modeled so you understand where the curve creates the greatest impact. If that curve flattens before you reach better margins, the model is bad.
Example: If you have a delivery service and your per unit costs are high during the initial rollout of the service, you need to have a model to verify that when the service reaches standard, expected capacity, it will generate sufficient gross margins.
2. Invest in the Right Technology
Action: Select technology platforms that can scale effectively as the business grows, such as investing in work management tools that offer automation and AI to streamline operations across the business.
Example: We “eat our own dog food” and have implemented our tool across all departments; our Operations team uses it to onboard new customers and to collaborate with the Sales team for planning upcoming, anticipated project load. Our Marketing team uses it to increase the number and quality of our campaigns. Our Product and Development teams leverage the platform to track current and upcoming feature developments.
3. Create Efficient Systems and Processes
Action: Build standardized processes that can be replicated easily as the business expands. Documentation and clear guidelines help in maintaining quality and consistency.
Example: As our company has grown, we’ve automated many processes that used to be done manually or through disjointed tools. We regularly meet to collaborate across all departments and plan for the next stage of growth. We’ve moved from reactive to proactive planning to be one step ahead of where we are today.
4. Cultivate a Scalable, Respectful Culture
Action: Establish a company culture that embraces growth and change but also supports mutual respect for different viewpoints and backgrounds. This includes fostering innovation, adaptability, and continuous understanding among employees.
Example: Above all, Moovila does not tolerate toxicity in the workplace. We invest a great deal of effort and work too hard for it to be poisoned by one or two bad actors. This encourages creativity and innovation throughout the business, allowing our employees to produce unique ideas that are met with support across the organization.
5. Hire and Develop Scalable Teams
Action: Build a team that can grow with the company. This means hiring for potential, investing in employee development, and ensuring the team’s size and structure can adapt to the company’s needs.
Example: At each stage in our business, we’ve required a unique skill set and tolerance for change. Our teams seek out not only the best skillset but also the capacity to meet our business where we are today.
Each of these points is critical for scaling successfully and requires deliberate planning and execution by the business leader. Neglecting any of these areas can result in inefficiencies, inability to meet demand, and ultimately, hindered growth.
What are some common misconceptions businesses have about scaling? Can you please explain?
Scaling Is Just About Growing Fast
Many believe that scaling simply means growing as quickly as possible. However, true scaling is about growing sustainably. It’s not just about speed but also about building a solid foundation to support growth without compromising quality or financial stability. The days of growth at all costs are gone.
Technology Alone Can Solve Scaling Issues
While technology is a crucial enabler of scaling, it’s not a silver bullet. Scalability requires a holistic approach, including process optimization, people management, and strategic planning.
Scaling Is Only for Startups
Scaling is often associated with startups, but businesses at any stage can and should consider how to scale operations effectively, especially when planning for long-term growth.
Scaling Doesn’t Affect Company Culture
Scaling can significantly impact company culture. What worked for a small team may not be effective for a larger organization. Preserving a company’s core values and culture is an integral part of scaling successfully.
How do you keep your team motivated during periods of rapid growth or change?
A rising tide lifts all ships. We are in tech, and all employees at Moovila have participated in the growth opportunity. That is incredibly important because it is one of the underlying motivators for people to understand why their work matters. However, the number one motivator for the team is their accountability to each other because they care about each other so much. I tell new hires that this is the best group of people you will ever work with. And I truly believe that. We have a “no asshole” rule. Assholes hire other assholes, so we spend a lot of time focusing on the culture and character of every hire. It makes growth through challenging times soooo much easier.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
As stated above, “Everything in moderation, including moderation.” You should never be “moderate” about showing those close to you how you care about them. You should never be “moderate” about what you are choosing to do for your career. You can be “moderate” about what brand of ketchup you use (unless you are a hot dog stand 😊). But, you shouldn’t be that way about love and what you’ve chosen to call your profession. Going that extra mile for those close to you matters more than you can imagine, to both them and you.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
Well, I’m not so sure about my sphere of influence. But I would say, find something you care about passionately that helps other people and do it. This could have a network effect. If we all poured our passion into work that helped other people, I believe the quality and efficiency of life would be elevated significantly. If the cause helps people, whether commercial, environmental, social or other, find what you love doing and do that. Don’t just chase the buck. Do what you love.
How can our readers further follow your work online?
https://www.linkedin.com/in/mike-psenka-208a97a/
Thank you so much for sharing these important insights. We wish you continued success and good health!
Operational Scalability: Mike Psenka of Moovila On How To Set Up Systems, Procedures, And People To… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.