In many high-growth organisations, leadership pathways emerge informally. A high-performing engineer becomes the engineering lead, the top salesperson is promoted to sales manager, and a capable project manager is placed in charge of operations. These decisions make sense at face value: individuals who excel in delivery are elevated to positions of responsibility.

Yet technical expertise does not equate to people leadership. Without structured guidance, training, or a broader HR strategy, these individuals become what are often described as “accidental managers.” They are asked to manage performance, coach employees, and uphold culture which are tasks that demand a very different skillset from the one that earned them their promotion.

For startups and scaleups that lack an internal HR function, this reliance on ad hoc leadership pathways poses significant risks.

The Risks of Leadership Without HR Capability

The consequences of promoting managers without the necessary preparation or support are well documented. Research from Gartner indicates that 60 per cent of new managers fail within their first two years. For resource-constrained businesses, that failure rate is unsustainable.

The risks include:

• Team disengagement – employees who feel unsupported are less likely to perform or remain committed.

• Turnover – ineffective leadership is consistently cited as one of the most common drivers of employee attrition.

• Cultural inconsistency – without frameworks, leadership behaviours vary widely, eroding trust and alignment.

• Operational inefficiency – managers stretched between delivery and leadership responsibilities underperform in both areas.

For larger organisations, these issues are disruptive. For startups, they can be existential.

The Case for Building Leadership Capability Early

Strong leadership is often regarded as a late-stage consideration, addressed once headcount reaches a certain threshold. In reality, leadership capability should be embedded from the outset. Early investment in leadership frameworks ensures:

• Clarity – managers understand expectations beyond output alone.

• Consistency – behaviours are role-modelled in line with values and strategy.

• Confidence – employees experience supportive leadership, leading to higher engagement and retention.

• Scalability – systems for managing people grow alongside the organisation, reducing future risk.

Practical Measures Without an HR Function

For organisations without internal HR capability, practical steps can still be taken to mitigate risk:

1. Define leadership expectations in terms of both performance and values.

2. Clarify managerial roles, specifying the proportion of time allocated to delivery versus leadership.

3. Introduce regular, structured check-ins to review goals, challenges, and behaviours.

4. Equip managers with practical tools, such as feedback templates and performance frameworks.

5. Commit to ongoing development, recognising leadership as a skill that must be continually refined.

The Role of Outsourced HR Consulting

While these measures are achievable, the reality for many founders and COOs is one of limited time and expertise. Designing leadership frameworks while also driving rapid growth is challenging without specialist capability.

This is where outsourced HR consulting offers tangible value. By engaging external expertise, startups and scaleups can access the systems, training, and guidance typically available only to larger organisations.

At Pupal, our role is to provide that capability. We partner with high-growth businesses to:

• Develop leadership frameworks aligned to strategy and culture.

• Train first-time managers in essential people leadership skills.

• Coach leaders to balance delivery with management responsibilities.

• Establish scalable systems that protect culture as headcount increases.

In doing so, we enable founders to focus on growth, confident that leadership capability is being developed in a structured, sustainable way.

Conclusion

Promoting strong performers without providing leadership support creates significant risks for startups and scaleups. Disengagement, turnover, and cultural misalignment are the predictable outcomes of leaving leadership development to chance.

For businesses without HR capability, building leadership frameworks early is not optional; it is a prerequisite for sustainable growth.