Founder Bottleneck: Why You’re Solving the Wrong Problems as You Scale
“Many leaders don’t struggle because they lack drive. They struggle because they’re too close to the work to see what really matters.”
That opening line captures a reality many founder-led professional service firms face as they grow from $3M to $50M and beyond.
Growth increases complexity. Complexity increases noise. And when leaders stay buried in execution, they start solving the wrong problems.
When Everything Feels Urgent, Nothing Is Strategic
Sergio Santinelli, COO of Baseline, described stepping into complex operations that felt “messy, overloaded,” with “a lot of motion but not enough clarity.”
This is common in scaling firms:
- Requests from every direction
- Compliance and revenue pressures colliding
- Teams debating solutions
- Founders wearing multiple hats
When you are “receiving a lot of noise from all the different sides,” you default to busy work instead of strategic thinking.
Urgency replaces prioritization.
That is how the founder bottleneck forms.
The Pattern: Collect the Noise, Then Create Space
Sergio shared a simple but powerful process.
First: collect all the noise.
Acknowledge what feels on fire. List the signals instead of reacting.
Second: create space.
Take a walk. Remove yourself physically from urgency. Force abstraction.
That distance allows you to ask the right question:
“What are we actually trying to solve?”
Without space, leaders react.
With space, patterns emerge.
Clarity does not come from pushing harder. It comes from stepping back.
Trade-Off Thinking vs. Reactive Thinking
In regulated environments like fintech and lending, decisions carry layered trade-offs:
- Revenue impact
- Operational cost
- Risk exposure
- Cost of waiting
Instead of reacting emotionally, Sergio described assigning scale values to these variables and quantifying trade-offs. He emphasized evaluating reversibility and asking what outcome you are truly optimizing for.
Are you optimizing for revenue? Certainty? Guidance? Risk reduction?
Without structured trade-off thinking, urgency wins.
With it, prioritization becomes disciplined.
The Execution Hub Problem
Scaling often fails not because teams lack talent, but because founders remain the cognitive hub.
When team members bring problems without proposals, leadership bandwidth collapses.
Sergio’s rule is direct:
“What’s your proposal?”
That shift transfers ownership. It forces structured thinking at the edge of execution. It reduces decision fatigue and strengthens accountability.
Delegation is not complete until thinking transfers.
If you are still the final interpreter of every decision, you are still the bottleneck.
Checklists Reduce Cognitive Load
In lending operations, document reviews became circular. The same loan file required repeated mental processing.
The solution was not effort. It was structure.
Formalized checklists removed repeated decision-making and reduced cognitive drag.
For professional service firms, this applies directly to:
- Client onboarding
- CRM follow-ups
- Reporting workflows
- Document coordination
If you repeatedly solve the same issue, the problem is not capacity. It is missing structure.
Structure protects focus. Focus protects leadership bandwidth.
Context Before Autonomy
Sergio also emphasized onboarding with deep context.
When new hires understand the broader objective, they make stronger decisions independently. Without context, escalations increase and founders remain trapped in clarification loops.
Ownership is built through context.
When people understand the “why,” they bring solutions instead of questions.
Connect With the Guest
To learn more about Sergio Santinelli and his work at Baseline:
Website: https://www.baselinesoftware.com/
LinkedIn: https://www.linkedin.com/in/sergiosantinelliv/?locale=en_US
The Immediate Move
Sergio Santinelli’s perspective reinforces a simple truth: proximity is the constraint in most growing firms.
When leaders stay buried in execution, clarity disappears. When clarity disappears, prioritization breaks down. When prioritization breaks down, growth feels heavier instead of cleaner.
Protecting leadership bandwidth requires:
Intentional distance
Defined decision frameworks
Structured trade-off evaluation
Clear ownership at the edge of execution
Systems that reduce repeated cognitive load
Growth should increase clarity, not compress your time.
If it feels heavier, that is the signal to rebuild structure — not push harder.
Create space. Define the real constraint. Transfer ownership. Then move.
Watch this before you hire your next support role.
Book a discovery call to see how the right executive support helps you scale with clarity, alignment, and control without burnout or chaos. Click here to subscribe.
Full Podcast Transcript
Hey everybody, welcome back to the Scale Smart Grow Fast podcast. Now, many leaders don’t struggle because they lack drive. They struggle because they’re too close to the work to see what really matters. Today, I’m joined by the COO of Baseline, who has scaled regulated fintech operations across multiple markets. We’re going to talk about why leaders often end up solving the wrong problems and how stepping back, building the right systems and creating operational space leads to clearer decisions, stronger execution and scalable growth. Welcome to the podcast. How are you today?
Thank you so much. Excited to be here. Thank you for having me.
It’s our pleasure. Now, tell us a little bit more about your background. What brought you to what you’re doing today at Baseline?
Thank you. So it’s actually quite interesting because I spend most of my career just stepping into business with complex operations. I’ve been in lending, obviously the SaaS now at baseline, and some other type of operations, usually, sometimes they feel messy, overloaded, and I’m just naturally drawn to solving these problems where there’s a lot of motion but not enough clarity.
into what we should be doing. So just quick, quick, story is that early in my career, I actually used to joke that there’s three roles where you never want to be in. Number one is operations, projects, and maintenance. And that’s because all the time you have that responsibility, but when everything goes well, no one actually gives you any credit for those. And exactly. But when something goes wrong,
goalkeeper.
You’re just observing all the blame, even if you had nothing to do with it, right? Just sometimes things break and but in any case those three roles you always they want to blame so Naturally, my intention was never to be part of operations, right? Which later in life, you know, I realized that some of my strengths Just kept me coming back into resolving this type of problems particularly when there was a lot of
you know, lot of motion, not enough clarity, feel things felt messy overloaded. And I instinctively step back and abstract myself from some of those, you know, problems, the noise, and that system of creating distance allowed me to see the problem more clearly. And that’s where I started to differentiate in some of the patterns and identifying the constraints.
And basically that’s what’s keeping me back into operations and the opportunity of bringing obviously that structure to the complexity and sometimes how it pays clarity.
Now, let’s dive into that a little bit. Maybe you could share or expand kind of what that aha moment was when you first realized that like being too deep in the work was actually limiting the leadership effectiveness.
Absolutely. So I think, I think there is, there’s a couple of moments in my life when I realized that, but let me go back into school for the very first one. Right. So I, I’m a mechanical engineer by training. So when I w when I was at school studying, there were some times where, you know, the problem was so complex that there was no clear answer on how to solve it. And that’s when I started realizing that just taking a step back and acknowledging what the problem was.
sometimes even sharing the problem with someone that had no clue of what you were trying to explain them help a lot. And that abstraction of the problem now consistently became part of my life. Later on in life, various roles, I was able to identify precisely that moment where there was this complex operation, we were, you know, drowning in requests or something in a system that broke specifically.
And I caught myself immediately taking a step back and say, okay, wait, what’s the actual deal? What are we trying to solve here? And that’s when I realized like, okay. So this is actually the process where I default to into solving or identifying what the problem is, or trying to bring some space between the problem and myself to really, you know, promote that clarity and understanding of the.
Yeah, I’m glad you mentioned that kind of stepping back and like trying to see what the real problem is. And, many leaders out there are often buried in the execution of the business. What types of problems do you see them consistently trying to solve? And maybe why are they not the real constraints or problems that they should be looking at?
I think that’s a great question. That’s primarily because when everything is urgent, nothing feels important enough, right? So you’re actually just receiving a lot of noise from all the different sides that you’re, you know, as an entrepreneur, you’re holding multiple hats at the same time, right? So there’s a bunch of things that seem to be urgent and you’re just, you know, doing busy work all the time before really stepping back into understanding, okay.
Yes.
What are the things that I should be actually solving and the things that, know, yeah, I mean, they’re urgent, but they’re probably not the most urgent thing and will nothing happen. if you decide not to. So yeah, I can, I can step and, and, know, dive deeper into how sometimes I resolve based on that problem. If you want me to go there, right. Awesome. So, for the most part, way I process this is.
Yeah, let’s do it.
The very first approach that I take is just collect all the noise. Sometimes you just have to take it in. Collect all the noise. You understand, yes, this is on fire. This is on fire. This other thing is on fire. Or apparently, it seems to be on fire. And then you take all that noise and you create some space. And that space sometimes is a physical space. So you go out, take a walk. A quick walk sometimes helps clear your mind. It’s like that.
Mm-hmm.
removes that all that urgency and it’s a five minute walk to really understand, okay, this is the thing that I should be solving, right? Summary times is it’s way more complex than that. It’s, and, and it’s not something that you can resolve within the five minute walk. So in that case, what I like to do or what I default doing is precisely taking that, explain the problem approach. Right. And when you’re explaining this, I usually
You know, I used to call my mom right back in the day, but nowadays it’s just like, just take someone that is willing to listen to the problem without providing too much of an advice. I’m not looking for advice. I’m not looking for solutions. I’m just looking for someone to react to the way I’m explaining the problem. And that helps a lot because, you know, it forces all these noise into a pattern and it forces your brain into providing something articulated for someone else to explain. Right. So I’m, if I’m facing, let’s say.
problem with a lot of issues in one particular aspect of our platform these days. I’ll just take a step back and say, hey, listen, listen to me. This is a problem that I’m facing and I just go and these are all the noise. These are all the signals that I’m taking. This is all, you know, the problem that seems to be popping up. And that usually creates the pattern that I was looking for. Like it helps me bridge those gaps of my understanding.
And helps my brain, you know, start connecting by words, connecting the problem when data actually does not help. Right. I usually default to, the missing questions. So when, when I go through these exercises and I still don’t have the answer, that usually means that I don’t have the answers to all the questions that I’m looking at. So it’s like, okay, what are, what is.
Hmm.
Right.
What’s the piece that I’m missing to solve these? Like there’s a, I see these as a puzzle. So I’m missing a couple of, a couple of, you know, little pieces of that puzzle for me to understand what the problem actually is. but I wouldn’t be able to get to that unless I’m trying to explain it. And all of a sudden it’s like, well, that doesn’t make sense. Cause I’m not making sense on my explanation to you. And I cannot devise the actual problem that I’m trying to solve.
Yeah. That’s an incredible framework and great step-by-step kind of natural progression there that I hope everyone was taking notes while he sharing that. Let’s kind of switch gears. You know, we’ve talked kind of in general terms about challenges and issues. Maybe talking about like teams and, you know, dealing with people, that’s a whole nother set of challenges that kind of come in there with personalities and things like that and human nature. You know, can you share some like moments when you’ve found that maybe stepping back and not pushing harder led to a better outcome with your team and what changed once you gained that distance.
Absolutely. So you know what? That’s it’s amazing that you, that you asked me that question because that’s something we experience, let’s say almost every week, right? you know, there’s like in your team, you need different personalities for your team to be complete. And that difference in person, and it is usually means that there’s frictions on the approach and even on the solutions that you’re trying to reach with each of the problems. Right. So for example, sometimes we’re trying to solve a UX problem.
Right. And the engineering team wants to solve it in a pragmatic way. Right. So yeah, we can, we can get really deep into the details of, look, this is a theory of the UX design and this is why the bottom needs to be this color and all those different pieces. And the same thing with the, with the technical side is like, no, no, but you know, the integration, the tables, the flow, like all those pieces come into place. And now what really happens is.
You listen to both of them and yes, they’re making their arguments. And obviously it’s not on purpose, but our egos are coming out, right? Like this is, this is the best solution. I’m very confident. feel very strongly about the solution. Now taking a step back is okay. What is the actual problem we’re trying to solve? Do we have, and sometimes it’s even what’s the cost of solving each of these two problems, which is, which is even more powerful sometimes because sometimes what you’re trying to solve those
Yeah.
two different problems at the same time. That’s because you don’t have a clear understanding of what’s a trade off between one and the other. So to me, what happens is we try to take a step back and say, okay, first of all, are any of these two reversibles? Like, can we make the mistake of going the wrong way? And what’s the cost of making that mistake? So if the cost is low stakes, we just take a head look, then.
It doesn’t really matter. It’s a matter of preference. We can test both of them and just move ahead and unblock us. Right. That’s number one. Number two will be, wait, this is actually very, a very complex problem that we need a certain solution for it. Right. So now we’re optimizing for the solution. that the solution is the solution really one or the other, or is a combination of both of them, but sometimes explaining what the actual solution is or what the problem is. Look,
We’re optimizing for certainty here. We’re optimizing for guidance to the borrower. We’re optimizing to, back in the day, we were optimizing for, let’s say, revenue collection. So revenue collection is the goal. So does that mean that we need to provide more friction or less friction on this particular thing? So that stepping back into, hold on a second. Let’s articulate what we’re solving for.
And what is the expected outcome sometimes. And that usually helps a lot, you know, just unblocking the team into focusing on the solution and become solution-oriented rather than providing more arguments into each of their opinions.
I love that. And I’m kind of curious because the next question I have, think might tie into the similar approach, but I want to hear it from you. When you’ve worked in different kind of complex markets where there’s a lot of compliance risks, know, FinTech, lending, all these things have a lot of wrappers and other layers that get added on it other than just what the user wants and the tech team wants. How do you balance speed, accountability and consistency without slowing growth of the organization?
That is a great question. So for the most part, it’s all about the trade-off, right? So the speed comes from focusing on the right things in my experience. So obviously you can do your 80-20, right? And that’ll help you focus into what’s the 20%. You know the rule. What’s the 20 % that will yield you 80 % of the outcome. So that’s number one. Number two is what is the trade-off? the trade-off will be in the past where
What we’ve done is we’ve assigned kind of a cost of, you can do it at cost of waiting or a cost of operation. that is what is the cost of revenue if I do this or if I don’t do this, what is the cost of operation and what is the potential losses or risks. If I do this, it’s kind of a bit of risk management, but the front with, taking into consideration more aspects of the business. wouldn’t take more than four in a particular time.
And you can assign, let’s say scales to each one of them. So for example, you’re going to sign, if we’re talking about operations, I can assign the scale of like, there’s no cost of operations. Like no one, it wouldn’t affect us to do something like this, or it’s not affecting us today. Whatever we’re doing, or you can go all the way up to this is on fire because this is costing us a ton of money to operate. And we’re basically doing, you know, concierge services for X specific tasks that we have.
So understanding that you can quantify basically the scale of these four aspects and then decide, okay, so these are like, obviously if you put from scale one to 10, one to four, in this case, you can, they can add them all. And then you will have kind of your cost of operation. You can even tie it to an estimated dollar amount for each one of them. So, same, same revenue, cost of operation and losses. can estimate what’s the cost of.
each one of them in revenue or in dollar amount. By doing that, what’s going to happen is you’re going to have a clear prioritization system, right? And that will give you the ones that you need to tackle on at the very first, because those are going to be the most expensive things. Now, you’re always going to have things that are way too costly to solve, right? So I’m thinking,
you
It’s not only costly to operate in the current way, but it’s also costly to execute a solution for that thing. Right. Now that’s where a lot of creativity comes into play and understand the, okay, now that I understand this is a problem that I’m trying to tackle. Now that’s where you have to do on your research and find your 80 20 into these are the actual drivers.
Of this problem. So I’m going to solve these two or three drivers and that’s going to reduce my cost considerably. Now I can wait until I have something else build, or I can. You know, wait until I hire the next person for that particular thing. So it becomes kind of a framework between what’s my next two action and what is the driver of that action that I need to solve for.
Now you’re kind of talking about metrics here and I’m curious, obviously in business, finance is going to be a strong metric we look at oftentimes in making decisions. Do you have other stories maybe where there was like some different metrics that maybe people may not think of intuitively that helped you clarify those priorities and reshape how the leadership team made decisions?
Absolutely. So let me see. Let me see. One of the examples that comes to mind is precisely, let’s say, in terms of risk assessment, right? Particularly in the lending industry, you know that there is always a risk of getting sued, getting the missing one compliance piece. And what is the trade-off between one or the other, right? Most of the metrics
I think there’s two currents in terms of metrics. let me take a step back. And I think that defining both of these is going to be super important. One current is you have to have metrics for everything. So now your team is focused on a lot of metrics instead of actually executing the drivers for those metrics. And usually what happens is if you define the wrong metrics, you’re going to drive your business to the wrong side of the business. Because you’re focusing too much into
into metrics that won’t actually help your operation. And then there’s the other size, which is no metrics at all. So no metrics and everyone’s just running like headless chickens, right. To figure out a way to execute. So I think balancing both of them, it’s the trick here. and the trick will be, you have to know what the trade-offs are for one or the other. So if we’re thinking again on that risk assessment, right, let’s say, well, if I don’t send my letter to the borrower,
Right on time. Right. That usually means that I’m not going to be able to collect default interest. Right. So if I don’t collect default interest, what does that matter? It doesn’t matter. Well, I guess I’m being more lenient with the borrower. Right. So it’s going to cost me revenue, but on the other side, I’m gaining goodwill with the borrower, particularly if I upfront say, Hey, you should be in default by now, but I’m trying to negotiate with you. let’s work together. So.
putting those two in the violence. And sometimes it’s just a very simple Excel into like a scale potentially, or a matrix, like a two by two matrix where you put your costs, like your cost of not doing it versus your cost of doing it. And then you can balance visual. I’m a very visual guy. So every time I put something on paper and visualize one way or the other, it just helps me, you know, define the pattern and define one of the metrics, one way or the other.
Well, going back to the human aspect and starting to hand off tasks, as leaders scale, protecting the focus becomes more critical. How have you seen delegation from executive and leadership teams work into workflows to help remove decision noise and strengthen follow through and creating space for better thinking?
Absolutely. I think, I think we both have, read a Dan Martell book, you know, buy back your time. And I truly love that book because it provides a good framework for that. And in my experience, the way, the way it works is if you don’t have, you know, a true passion for solving whatever it is that you’re doing, like that’s probably not the right thing you should be doing. Right. Obviously.
your time.
We know that businesses are made on the boring stuff, right? Being very consistent on the boring stuff. So in the past, let me talk about specifically when we’re in the lending business before we’re doing SaaS, right? So one of the most boring things we could do was reviewing the loans for closing, right? So, know, know, you’re probably a lender as well these days. And usually what that happens is
There is a process where you collect all the documents, you read through the documents, you make any corrections or request any corrections, and then you move forward. The problem is that is a circular reference, right? So you go back, you do these over again, and then something change and you have to do it all over again, and then something else changes, and then you have to do it all over again. And at the same time, you’re maintaining your information or your source of truth somewhere else, right?
Either it’s an Excel or you have a system and you’re trying to keep everything pieced together. So it makes sense. First thing is that is a lot of cognitive load every single time, particularly if you have to think about those single steps every single time. Right. So what we did very pragmatic approach was let’s do a checklist. Right. So this is the checklist for this document. This is for the checklist for this step. Right. And then if you have to review one document again,
You just have to review your checklist once again. And that usually provides some clarity into let’s not think what we have to review every single time, but just execute the actions that we’ve thought in the past of what are the things that you have to review. So that’s a good way of looking at the processes in terms of let’s put what we do today. So we don’t have to solve the same problem every single time or decide on every single time. Cause that
just becomes very draining if you have to solve the same problem more than once. So once you’ve done that, then it’s a matter of just execution of the same problems. Once you’ve done that at least once, you know whether that’s something you love doing, or it’s something that you have to hire someone for. That’s just my approach and I’ve seen it work pretty well in the past.
Yeah.
It makes a ton of sense. And I can totally relate to like having the checklist. There’s been many times in our businesses, have the staffing business. We also have our lending business. if a procedure might be in place, but there’s still some things getting missed periodically, we implement the checklist. it’s, know, using technology is great because you can have that like visual kind of indicator of like how much, how many of the checklist items were done. And it like changes color when you do that. And we found that just taking that checklist kind of extrapolating from the SOP,
and putting it in the task management portal really eliminates those issues. And it’s amazing. So I’m glad you brought that checklist up.
Totally. I think just to add on top of that, one thing that I would like to add is you got to be consistent into adding the things into the checklist, but also removing things from the checklist.
Yeah, you got it. So talking about people again, what I guess I’d like to hear from you, if you have any tips on like onboarding practices to help quickly shift the new team members from just doing task execution to having true ownership in the operation environment.
Absolutely. some, sometimes people, people like the direction, right? So whenever you’re on boarding, even, even like, I remember back in the day, when I was starting my career, every time I jumped into a problem without any clear direction, just felt very frustrating. Right. Cause you just have to, you’re both understanding how the company works. You’re understanding how the problem works, right. Or what your role is. And then at the same time, you’re trying to execute something that makes no sense. So.
I think context is the most important piece. So particularly for us, and coming from very regulated and complex industries, usually providing that context upfront, it’s the best approach and that, and that even starts from the interview process. I really like to have deep, detailed interview process where people get a lot of the context. And that is because I feel that.
for someone to make the decision to come on board with you, they have to be aware of what are the problems that they’re going to be solving or what are the tasks that they have to be executing. So I think it starts even there. You have to provide whatever is your process, but as much as context as you can. And I can explain more about what the process is that we follow, but ultimately comes from that initial context. And then it comes from what do you need to know to be able to execute your task, right?
starts from globally, what is the company doing? What is the purpose of the company? And this is where the vision and mission and some of the values come into play, right? But also sometimes if you have the opportunity to onboard these people through all the aspects of the execution, that just opens the mind, right? Because number one, it creates connections outside of the, let’s say bubble of the group or the team that they’re working with. And
It also provides a good understanding of why the other team is doing what they’re doing. Right. So it builds those connections upfront. And from there, this is where you started working on, you know, more of the execution and teaching them what the execution is. After a certain point, then you just have to let them go. And that means instead of where every time they come up with, you know, a problem for you to solve, my approach has always been, okay, what’s your proposal?
Yes.
Like you’re, bringing me this problem. That’s fair. I can solve it. No problem. And we all know like as owners or as founders or the founding team execute executive team, can solve those problems, but to really be able to help your team grow is okay. You have to bring me a couple of solutions. Like what it is that you think it’s the best approach. You have the most amount of information. You should be able to articulate what the problem is and what a proposed solution is.
Sometimes those proposed solutions might not be aligned to the strategy, might not be the best approach based on what you know. Right. But you can compliment that and you can say, look, I appreciate your approach. think that’s great, but ultimately you’re missing all these two or three pieces that are just going to compliment. Here’s my other proposal. What do you think or how do you feel about that? Sometimes there’s a back and forth and you go into even a totally different direction based on that additional information, but that.
just provides more ownership and that communication style that you can rely on people to solve their problems. And also every time they get the solution that they propose, it just empowers them every single time.
That’s a great point. That’s something we also train our executive assistants to do is anytime they have a question or concern, we encourage that. Like you said, when you’re going to bring that question or concern, always come with at least one proposed solution. It doesn’t have to be the final answer, but it’s also easier from the leadership team’s perspective.
Rather than having like that mental burden of like solving everything from scratch, it’s a lot easier to just say like, yes, that’s good. Or no, here’s some modifications and having to start from scratch and just like solve it. don’t know that if they’ve thought about it at all. So I’m really glad you brought that up.
Awesome. Yeah, absolutely. I also think that it’s very empowering. If I were to give advice to myself, when I was starting my career, that will probably be my number one advice. Make sure you bring a solution every time you bring a problem. Cause sometimes you don’t even need someone else to take, you know, to, give you guidance. You’re just advising. This is what I will do. Let me know if you’re okay with it.
Sometimes it’s just that and leaders will say, yeah, go for it, run with it. Let’s see what happens.
Exactly. As we wrap up here, for those leaders that are listening and maybe feel busy and reactive and stretch too thin, what’s one immediate action or advice you’d have for them to take this week to create space and start solving the right problems?
Awesome. I would say number one is get some space. Get some space by doing two things. Number one is when you’re taking as much problems as you can, write them on a piece of paper, and then take a walk. That would immediately free up some of your mental overload.
and guide you into what are the things that you should be solving and what are the things that you can delegate to someone else. That’ll be my step number one. Step number two will be prioritization, but that’s probably more than a week.
Awesome, great advice. Now as we wrap up, where can people best connect with you and start exploring more of your work and learn about what you’re doing at Baseline?
Awesome. Thank you so much. best, the best way to approach me will be LinkedIn. Um, my LinkedIn, you can find me under and particularly will be linked in slash. let me find it here.
So there’ll be linkedin slash in slash V. Santinelli with a double L.
Perfect, and we’ll make sure to have that link in the show notes and podcast notes on all the platforms when this gets published. To those that were listening today, if you got value, hit the follow and subscribe button or tap that star and like button. Every rating helps us equip more business leaders who want to grow the smart way. Thanks again for tuning into the Scale Smart, Grow Fast podcast. Here’s to building businesses that give you more freedom, stronger teams, and lasting growth. Until next time, keep scaling smart. Thank you.
Thank you so much.

