Promotion Can Destroy Your Best Talent

Most CEOs make the same mistake: they assume their best individual contributors will become their best managers. My guest on The Scaling CEO, Mark Bluvshtein, has seen how destructive that assumption can be.

Mark is the CEO of Collage HR, an HR and payroll software company for Canadian businesses. Before that, he helped scale Wave from 90 to 300 people and a $500 million acquisition by H&R Block, later guiding HuMe through its Series B and acquisition. His first career was as a chess grandmaster representing Canada on the world stage. From chess to scaling, his mindset is the same: see the whole board, anticipate the consequences, and avoid losing your most valuable pieces.

The Blind Spot CEOs Refuse to See

Mark’s biggest observation about founders: they assume today’s structure is fixed.

“They assume that what they have today in the business and the team is fixed… in reality everything about the business could change depending on the needs of the market.”

CEOs who cling to the current team or model blind themselves to opportunities. Flexibility, like Slack pivoting from gaming to workplace messaging, is what separates companies that adapt from those that stall.

Why Saying No Is the CEO’s Real Job

Inside Wave’s hypergrowth, Mark learned the value of ruthless focus.

“You should just say no to as many things as possible. Focus on what really matters and execute on that relentlessly.”

Startups never lack ideas. They lack prioritization. The CEO’s job is to say no far more often than yes, so the team can execute on the few things that matter most.

Grinding or Dead End?

Mark co-founded Actify, a startup that ultimately shut down. The experience taught him the hardest CEO call: knowing when to quit.

“We didn’t have product-market fit… we could continue grinding, but it would never become a huge success.”

Founders often confuse persistence with progress. The discipline is knowing when feedback from the market proves the opportunity isn’t there.

Delegation as a CEO Skill

When Mark became CEO of Collage HR, his hardest upgrade was stepping back.

“I was extremely involved in almost every decision… it was detrimental to the business because I wasn’t focused on the things that only I can do.”

CEOs must delegate even when the work isn’t perfect. Perfectionism in the weeds starves the business of the CEO’s unique contributions.

The Promotion Trap

Mark’s strongest warning to CEOs: stop promoting top contributors into management by default.

“The best individual contributors… they’re often pushed to become team leaders and then you’re taking away their superpower. That first engineer is often not the right person to lead a team of 30 engineers.”

When great performers fail as managers, CEOs lose twice: the individual’s original impact and the team’s momentum. Instead, honor contributors who want to stay in their lane, and hire true player-coaches who can both execute and lead.

Avoid the “Professional Manager” Mistake

The opposite trap is hiring leaders who only manage.

“Bringing in professional people managers often reduces velocity… in startups, you need people willing to get their hands dirty.”

At Shopify, senior leaders are still expected to code. For CEOs, the lesson is balance: avoid over-promoting contributors and avoid hiring leaders who won’t execute. Scaling thrives on player-coaches.

Using AI in HR

Collage HR is already embedding AI into its platform. Their resume screener scores candidates and summarizes fit instantly. For Mark, the ROI is simple: if a $20 subscription saves an hour, it’s worth it.

His goal is cautious adoption. Find specific use cases, test rigorously, and avoid overhype. He’s convinced every employee will use AI in five years, but only if it’s introduced thoughtfully.

Final Takeaway

Mark Bluvshtein’s story is a warning to CEOs: your best hire might be your worst promotion. Don’t destroy your top talent by forcing them into management. Build a culture that respects contributors, elevates true leaders and scales with flexibility.

 I’m Glenn Gow. I coach CEOs who want to scale by building the right teams. On my podcast, I uncover the strategies elite leaders use to grow faste.

Listen to the full episode of The Scaling CEO with Mark Bluvshtein to hear how a chess grandmaster turned CEO scales people and companies without losing the board.

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Glenn Gow
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