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Field note 074 min readFrom the notebook · The Three Constraints

Why hiring more salespeople can make stalled growth worse

Adding quota to a funnel that leaks after the close multiplies the leak. The first hire should be a diagnosis, not a rep.

When a number stops moving, the instinct is to push on the front of the machine. More leads, more reps, more spend. It feels like action, and it is the easiest place to look: the top of the funnel is visible, measurable, and someone is already accountable for it.

But throughput equals the narrowest gate. Widen a different one and nothing moves. Most companies I meet are widening the wrong gate: buying traffic when delivery is the constraint, hiring sales when pricing is.

Every stalled business is stuck on one of three things

Decisions, focus, or accountability. Decisions that aren’t being made: the pricing change everyone knows is needed but nobody owns. Focus scattered across a dozen priorities, so none of them gets the intensity to move. Accountability that’s shared, which means it doesn’t exist; when everyone owns the number, no one does.

It’s almost never all three. It’s usually one, wearing the costume of the other two. And a new salesperson doesn’t touch any of them. They walk into the same pricing floor, the same six-week onboarding, the same unmade decision, and now there are two people feeding deals into it.

What it looks like in practice

A $100M consultancy was certain its software unit had a talent problem. Fifteen interviews later, the lowest scores weren’t in engineering at all. Five leaders held five different visions; any of them could veto a decision and none could greenlight one. A sales hire would have sold into a product nobody had agreed to build.

You would not believe how often a “growth problem” turns out to be a single decision that’s been sitting unmade since last spring. Find which of the three is the real constraint and you’ve found the highest-leverage move available to you. Everything else is noise until that one is named.

The first hire

Before the rep, buy the read. Two days with the right people, one at a time, will tell you which gate is narrowest. If it’s sales, hire. If it isn’t (and in twenty years I can count on one hand the times it was), you’ve just saved a year of quota that was never going to land.

Where is your company leaking revenue?

Twelve questions, five minutes, no email. A read on where to look first.