The Hidden Math of Complexity

W5 Hidden math of complexity

John Nieuwenburg

John Nieuwenburg has been a professional business coach since 2004. Prior to becoming a coach, he held executive positions with Tip Top Tailors and BC Liquor Stores. In 2019, MacKay CEO Forums awarded him with Canada’s CEO Trusted Advisor Award in the Small Business category. Since becoming a coach, John has worked with over 350 clients, taking them through a systematic process that helps them feel organized, confident and in control of their businesses.

Why Growing Your Team Feels Harder than it Should

Here’s a question I like to ask business owners: How many handshakes does it take for three people to shake everyone else’s hand?

 

Most people say two. But the answer is three. Person A shakes with B, B shakes with C, and A shakes with C. Each person only did two handshakes, but the group needed three to get it done.

There’s actually a formula for this. It’s x² minus x, divided by 2.

So when x is 3: 3 times 3 is 9, minus 3 is 6, divided by 2 is 3. Simple enough.

Now let’s say your team grows from 3 people to 10. Run the formula again. 10 times 10 is 100, minus 10 is 90, divided by 2 is 45.

Think about that for a moment.

The group grew by a factor of three. But the number of communication pathways grew by a factor of fifteen.

And that, right there, is why what used to work in your business suddenly doesn’t.

When you had three people, communication was simple.

You could yell across the shop. Make a phone call. Talk to the person in the seat next to you in the truck. Everyone was connected to everyone else, naturally, just through the course of the day.

But now you have 10 people. And you’re wondering how come the same approach isn’t working. Why are things getting missed? Why do you feel like you’re repeating yourself all day? Why does every decision seem to funnel back to you?

It’s not because your people are worse. It’s not because you hired wrong (although that’s possible too). It’s because the complexity in your business increased.

This is one of the most common walls I see business owners hit.

If you’re spending your day answering texts, fielding questions, and coaching people through things they should already know how to handle, it’s a sign you’ve outgrown your current way of operating.

When there were three of you, the day-to-day, minute-by-minute conversations were enough.

You didn’t need formal communication structures because the informal ones covered everything.

But at 10 people, you have 45 communication pathways, so you can no longer rely on that.

What got you here won’t get you there.

This is how owners end up in the hub-and-spoke trap. Everything flows through them. Every question, every decision, every approval.

So what do you do when the math has outgrown your management approach?

You need to shift from relying on informal communication to building intentional structures.

Build communication systems that scale.

The most powerful thing you can do is implement a team meeting rhythm.

This is a disciplined cadence of meetings that keeps everyone aligned without everything passing through you.

Of all the meetings in that rhythm, the one that matters most is the daily huddle: a 10 to 15-minute stand-up where the team covers what’s up, what’s stuck, and how you’re tracking on the numbers.

Daily huddles begin on the floor and cascade upward through your managers so that by the time it reaches you, you already know what’s going on without being in every conversation.

Document your processes.

If the way things get done lives only in your head (or in hallway conversations between your three original people) it can’t scale.

You need Standard Operating Procedures that allow your team to do the work consistently without coming to you for instructions every time.

SOPs don’t need to be giant binders. A short video walkthrough, a simple checklist, a Google Doc with clear steps will work.

The key is that the knowledge gets out of your head and into a system that anyone can follow.

Think of it this way: McDonald’s gets those french fries to taste the same in every location, even though they’re made by a 16-year-old whose parents can’t get them to clean their room. They do that through systems.

And here’s a tip: don’t write the SOPs yourself. Show your team how to do the task, then have them document the process. They learn it better by writing it out, and now you have instructions you can hand to the next person.

Delegate decisions, not just tasks.

When you go from 3 people to 10, you can’t just delegate more tasks.

You need to start delegating authority, too.

Otherwise you’re still the bottleneck – and you’ve just added more people who depend on you.

Real delegation means giving someone the right level of responsibility, the right level of authority, and the right level of coaching and supervision based on their experience.

Over time, done properly, you get people to a point where they’re handling things on their own and only coming to you for the exceptions.

The real shift isn’t just about adding structures and systems. It’s about changing how you see your role.

I use a Navy metaphor with my clients. When you’re the captain of a 50-foot boat with a crew of 10, you might also be the most skilled mechanic on board. So you’re in the engine room with tools in your hands, and also trying to captain the ship. That works at that scale.

But now picture yourself on a 150-foot boat with a crew of 50. That captain can’t be in the engine room all day. There needs to be a chief engineer. The captain’s job has shifted to coordinating and optimizing what everyone else is doing.

Your business works the same way. As your team grows, your value has to shift from what you can do with your own hands to how well you can develop and lead the people around you.

The complexity that comes with growth isn’t a sign that something is wrong.

It’s just math. And it catches almost every owner off guard because the increase isn’t gradual, it’s exponential.

Three people to 10 doesn’t sound like a dramatic change. But 3 handshakes to 45 is a completely different operating reality.

The owners who navigate this well are the ones who recognize the shift early and start building the systems, structures, and leadership skills to match.

The ones who struggle are the ones who keep managing a team of 10 the way they managed a team of 3.

Are you feeling the effects of handshake math in your business? I work with established business owners who are navigating exactly this kind of growth challenge. If you’d like some help building the systems and structures that let your business scale without it all running through you, let’s talk. Book a call with John

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