Scaling Up for Impact: Verne Harnish on Purpose, Agility, and 10X Thinking (2025)

Verne Harnish joins Phil Rose to unpack Scaling Up, the daily huddle rhythm, BHAGs, and the one metric leaders must protect to scale purpose and profit in 2025.

Guest: Verne Harnish — founder of Entrepreneurs’ Organization (EO) and creator of the Scaling Up framework
Host: Phil Rose, Sparks by Ignium

Why this conversation matters now (2025):
Leaders are operating in a world of persistent change—shifts in interest rates and capital access, AI‑driven disruption, talent mobility, and sustained pressure on margins. The companies that win aren’t just the “biggest”; they’re the fastest learners—those that pulse daily, stay close to customers and teams, and turn purpose into a competitive system. Verne Harnish breaks down exactly how to do that, with practical tools you can deploy this week.

What you’ll learn

• Purpose > profit (but you need both): Why centring impact keeps teams engaged and customers loyal—without “growing broke.”
• The daily huddle advantage: How 8–15 minutes each day creates real‑time intel, faster decisions, and compound momentum.
• OODA in business: Use Observe–Orient–Decide–Act to out‑adapt competitors.
• 10X thinking: Where to look for a true 10X advantage (e.g., retention, cycle time, customer experience).
• The one metric to guard: Gross margin per employee—and why many firms lose it after £/$10m unless they act.
• Pricing & comp as shock absorbers: Good‑Better‑Best pricing and smart compensation design to protect margins and retain talent.
• Coaching as a performance system: External coaching for leaders + internal coaching culture for managers.

Episode highlights (chapter guide)

(Times approximate; use as chapter headings in your player/CMS)
00:00 — Why scaling up changes economies and lives
03:30 — EO origin story & the MIT Entrepreneurial Masters Program
06:20 — Scaling Up revised: leading with purpose
10:05 — Navigating inflation/talent shifts without “growing broke”
12:40 — OODA loop, intel cadence, and moving faster by pulsing faster
15:10 — Pricing strategy + Scaling Up Compensation principles
16:30 — Gross margin per employee: your guardrail metric
18:10 — Perspective: global growth & mindset for opportunity
20:00 — Anatomy of a great daily huddle (3 questions)
23:15 — Replacing time‑heavy 1:1s with an 8‑minute exec huddle
26:10 — 10X examples: from military ops to call‑centre retention
30:00 — Coaching at the top: Best Buy’s turnaround & The Heart of Business
31:15 — People–Strategy–Execution–Cash: the Scaling Up backbone
34:00 — Coaching + learning + tech: the complete scale system
38:00 — Proof points from UK scaleups & why bold beats timid

The Sparks playbook (take this to your next leadership meeting)

1. Start a daily huddle (company‑wide, 8–15 mins):
   What’s up? (key focus today)
   Number(s) for your role/team (say them aloud)
   Where are you stuck? (creates coachable moments)
2.  Name your 10X lever (one only): retention, cycle time, customer response, onboarding, NPS—pick the lever you can realistically 10X.
3. Protect gross margin per employee: benchmark your industry; set a quarterly target; design 2 moves (pricing & mix, and capacity/productivity).
4. Refresh pricing: ship a Good–Better–Best offer (even for services). Add a premium tier with clear value.
5. Tune compensation: align to value creation (outcomes), not just activities. Keep it simple, transparent, and sustainable.
6. Re‑declare purpose: a one‑sentence “difference we make” and a measurable BHAG. Put both at the top of your quarterly plan.
7. Install coaching: hire an external coach for the leadership team; train managers to ask weekly: “What’s your #1 goal, and any barriers?”

Key quotes

• “If you want to move faster, pulse faster.”
• “You don’t want to grow broke—purpose and profit must scale together.”
• “The metric to watch in turbulent times is gross margin per employee.”
• “Think 10X. Even if you don’t hit it, you’ll think differently—and that’s the point.”
• “Nobody wants managing; people need coaching.”

Resources mentioned

• Scaling Up (book & tools)
• Scaling Up Compensation (book)
• Growth Institute (courses for scaleups)
• The Heart of Business by Hubert Joly
• Daily Huddle Agenda (Spark Tank template)
• BHAG Canvas (Spark Tank worksheet)

Who should listen

Founders, CEOs, and leadership teams in the £/$3m–£/$200m range who want disciplined growth, stronger margins, and a culture that compounds performance.

Ready to scale with purpose and profit? Book a Scaleup Diagnostic with Ignium, or start with our Daily Huddle Template and run it for 10 workdays—then measure the lift in speed and clarity.