Companies outgrow key people who were loyal and crucial in early days. Circle analogy shows original leaders covered all oversight needs but as company grows their circles no longer encompass the black circle of business needs. Multiplier leaders scale by developing direct reports whose circles together cover the business. Over 80 percent of companies visited have this problem.

What you'll learn in this episode:

• Circle analogy: person's capacity is a big circle around a small one, at startup those circles cover all business needs
• As company grows: black circle of business needs triples but original leadership circles stay the same size
• Multiplier leader: uses influence to develop direct reports whose combined circles cover the business needs
• Leader three failure: no accountability, fixed mindset, tiny circles from direct reports, huge gap in oversight
• Jim Collins metric: number one metric is key seats filled with right person, must be above 90 to 95 percent

The worst thing you can do is be in denial about it because as long as that person is in that seat you will be constantly losing money.

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