Operational Scalability: Vera Modenova of Flowwow On How To Set Up Systems, Procedures, And People To Prepare A Business To Scale
Automate where possible. Identify and automate routine tasks to reduce the need for additional staff as your business scales. This not only minimises the risk of human error but also frees up your team to focus on more strategic initiatives.
In today’s fast-paced business environment, scalability is not just a buzzword; it’s a necessity. Entrepreneurs often get trapped in the daily grind of running their businesses, neglecting to put in place the systems, procedures, and people needed for sustainable growth. Without this foundation, companies hit bottlenecks, suffer inefficiencies, and face the risk of stalling or failing. This series aims to delve deep into the intricacies of operational scalability. How do you set up a framework that can adapt to growing customer demands? What are the crucial procedures that can streamline business operations? How do you build a team that can take on increasing responsibilities while maintaining a high standard of performance?
In this interview series, we are talking to CEOs, Founders, Operations Managers Consultants, Academics, Tech leaders & HR professionals, who share lessons from their experience about “How To Set Up Systems, Procedures, And People To Prepare A Business To Scale”. As part of this series, we had the pleasure of interviewing Vera Modenova.
Vera Modenova, 30-year-old COO of Flowwow with 8 years of leadership experience in customer experience and operations for e-commerce business. With a team, developing a ‘glocal’ (global + local) marketplace that brings ultimate joy to your loved ones around the world.
Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” better. Can you tell us about your ‘backstory’ and how you got started?
It’s a pleasure chatting with you. Thanks for having me!
Growing up, I was a bundle of energy, always curious and creative. Even as a teenager, I had a knack for making money. I dreamt of becoming a professional photographer, so I started capturing sports matches, selling photos on riverboats, and even shooting corporate events.
Despite my young age, I had a rebellious streak. I’d sneak out to nightclubs, not to party, but to work as a photographer! During my student years, I continued to seek out part-time photography gigs. I wanted to be independent and make my own way. Perseverance and determination have been key to my career journey. And Flowwow is the perfect place for me to realise my boldest ideas and ambitions.
Even while on maternity leave, I remained actively engaged with the business. There have been so many exciting developments, and I was thrilled to contribute and work towards our shared goals. Now that my daughter is two, I feel fully back on track.
It has been said that our mistakes can be our most outstanding teachers. Can you share a story about the funniest mistake you made when first starting? Can you tell us what lesson you learned from that?
I once had a hilarious mishap during a job interview. While taking my dog to the groomer, my microphone accidentally turned on during a meeting. Everyone heard me say, ‘I have an appointment for grooming’. Needless to say, the interviewee didn’t get the job. Now, I always triple-check my microphone before joining a meeting.
What do you think makes your company stand out? Can you share a story?
Well, I think what sets Flowwow apart is our unwavering belief in the power of human connection. It’s more than just a marketplace; it’s a platform that brings people together through thoughtful gifting.
We’ve evolved from being strictly a flower marketplace to a global destination for unique gifts. But what hasn’t changed is our commitment to supporting local businesses. It’s incredibly rewarding to see how our platform empowers small businesses worldwide to reach a global audience.
At the end of the day, we’re not just about transactions. We’re about making people happy. Whether it’s a birthday gift, an anniversary surprise, or a simple gesture of appreciation, we want to make it easy and enjoyable for people to connect with their loved ones.
I believe that our focus on both the personal and the practical is what truly sets us apart. By providing a platform that is both user-friendly and effective, we’re able to create a win-win situation for everyone involved: our customers, sellers, and team.
Leadership often entails making difficult or challenging choices between two good paths. Can you share a story about a hard decision or choice you had to make as a leader? I’m curious to understand how these challenges have shaped your leadership.
One of the toughest decisions I’ve faced was connected with forming a new department. I had to weigh the options of hiring a new head or promoting a current team leader. The team lead wasn’t particularly interested in the expanded role, so we decided to bring in someone new.
Unfortunately, things didn’t work out, and we had to part ways after six months due to differences in values and approaches. Looking back, I believe I could have done more to encourage the team leader to take on the new position. It was a valuable lesson that has helped me better understand my role in developing my team’s potential.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
I believe that leadership is about 80% soft skills, and that can be quite difficult to articulate. For me, three traits have been instrumental to my success: responsibility, effective communication, and delegation.
Responsibility is more than just completing tasks on time. For a leader, responsibility means being committed to the overall success of the company. If I see something going wrong, even if it’s not directly under my purview, I feel compelled to address it. Think of a company like a house of cards: every part needs to be strong for the whole structure to stand.
Effective communication is a constant challenge. There’s always a breakdown somewhere. Every one-on-one meeting seems to highlight a miscommunication between teams. It’s about identifying these issues and putting measures in place to prevent them from happening again.
And then there’s delegation. Everyone talks about it, but it’s more than just handing out tasks. It’s about creating an environment where people can shine. When I delegate, I’m not just saving time; I’m empowering my team to grow and take ownership. For example, I once delegated a major project to a junior member of the team. Not only did they deliver exceptional results, but they also gained invaluable experience and confidence.
Thank you for all that. Let’s now turn to the main focus of our discussion: operational Scalability. Let’s begin with a simple definition to ensure that we are all on the same page. What does Operational Scalability mean to you?
To me, operational scalability is all about building a team that can run independently. For instance, I’ve had the pleasure of nurturing several new ventures within our company. I’ll usually spend time understanding the specific needs of that venture, building a team around it, and putting in place the systems and processes it requires. Once it’s established and self-sustaining, I’ll often hand it over to another part of the business or delegate it to a more junior member of my team. It’s incredibly rewarding to see these projects grow and thrive.
Which types of business can most benefit from investing in Operational Scalability?
Operational scalability is a game-changer for businesses that rely on standardised processes and high volumes.
Let’s take fast food as a prime example. Places like McDonald’s have perfected the art of operational scalability. By standardising every step of the process, from cooking times to portion sizes, they can serve thousands of customers daily with remarkable consistency.
Then there’s the car rental industry. The rise of companies like Zipcar and car-sharing apps has completely transformed the market. By automating the entire rental process, from booking to payment, they’ve made car rental accessible to a much wider audience.
Discount retailers and low-cost airlines are other great examples. These businesses rely on operational efficiency to offer competitive prices. By automating their supply chains, inventory management, and customer service, they can keep costs low and pass the savings on to their customers.
Finally, marketplaces like AirB&B, Booking.com, and Etsy are perfect candidates for operational scalability. By automating many of their processes, they can handle a massive volume of transactions while maintaining high levels of customer satisfaction. At Flowwow, for instance, we’ve shifted to online ordering and automated customer support, allowing us to focus more on growth.
Why is it essential for a business to invest time, energy, and resources into Operational Scalability?
First, it’s about economic efficiency, especially in industries with thin profit margins. I recently spoke with a craft beer brewer who shared that it took them 4 years to reach a point where their profits weren’t immediately reinvested back into the business. And that’s regarding their yearly X2 growth! That’s a significant milestone for a small, local brewery! Without investing in operational scalability, they would have continued to tread water, as their product only became truly profitable at a certain scale.
Of course, every business is different. Not all companies need to scale up dramatically. For instance, a small, local hair salon might find that their growth is primarily limited by the number of stylists they can hire. While they could certainly benefit from some automation, like a CRM system, their revenue is more directly tied to the number of hours their stylists work.
In contrast, what happens to a business that does not invest time, energy, and resources into Operational Scalability?
It really depends on the industry and the specific circumstances. In some cases, it might just mean missed opportunities for growth and a slightly lower profit margin. But in others, the consequences can be far more severe. We could be looking at a decline in company valuation, increased costs, reputational damage, or even bankruptcy.
Just think about what happened to Krispy Kreme in the early 2000s. They were riding high on a wave of popularity, but their rapid expansion outpaced their operational capabilities. They tried to be everywhere at once, from gas stations to kiosks. The problem? Quality control slipped. Issues with inventory management and ensuring the freshness of their products led to a significant drop in their share price and a period of corporate restructuring.
Over-saturation contributed to the company’s challenges. With too many Krispy Kreme stores in close proximity, each location was competing with the others. It was a classic case of growth for growth’s sake, without a clear strategy. It was a costly lesson for them, as they had to invest heavily in fixing their problems and rebuilding consumer trust.
Can you please share a story from your experience about how a business grew dramatically when it worked on its Operational Scalability?
Well, it’s difficult to pinpoint a single, dramatic instance when operational scalability made an overnight difference. It’s more of a cumulative effect, I think.
One of our biggest strategic moves in operational scalability was overhauling our product interfaces. We built our own CRM system rather than relying on a third-party solution, and we stopped taking orders by phone, even when it seemed like the industry standard. We also introduced customisable support templates that can be easily adapted for each new connection to maintain the high standard and a seller onboarding checklist. We’re currently working on an AI-powered WhatsApp bot to streamline our onboarding process for new sellers. The bot will handle initial inquiries and provide basic information, allowing our sales team to focus on more complex conversations. These might seem like small steps, but they’ve collectively allowed us to grow without a proportional increase in our team.
Here is the primary question of our discussion. Based on your experience and success, what are the “Five Most Important Things A Business Leader Should Do To Set Up Systems, Procedures, And People To Prepare A Business To Scale”? If you can, please share a story or an example for each.
A great question. Scaling business is a complex process that requires careful planning and execution. Based on my experiences, here are five key elements I believe are crucial for successful scaling:
1. Automate where possible. Identify and automate routine tasks to reduce the need for additional staff as your business scales. This not only minimises the risk of human error but also frees up your team to focus on more strategic initiatives.
2. Invest in people. Your employees are your greatest asset. Each employee who brings enthusiasm and a clear head to their work is a diamond in the rough. It’s particularly important to nurture those at the beginning of their careers as they develop personally and professionally. By fostering a culture of learning and empowerment, you’ll create a team that is more engaged, more productive, and better equipped to handle challenges. At Flowwow, 80% of our leadership team started in entry-level positions.
3. Foster transparency. By empowering individuals to delve into any data, you foster a culture of autonomy and initiative. Consequently, rapid scaling becomes less daunting, as the risk of losing control is mitigated. Your employees will feel empowered to make decisions in critical situations without your direct input, and more often than not, these decisions will be the right ones.
4. Balance data-driven decisions with intuition. While data is essential for making informed decisions, don’t underestimate the power of your gut. For instance, when Flowwow decided to launch a customer app, it seemed counterintuitive based solely on data — flowers, our initial product, aren’t typically associated with high repeat purchases. Yet today, the majority of our orders are placed through the app, resulting in higher average order values and lower customer acquisition costs.
5. Build a technological infrastructure. Given our seasonal peaks, when we need to scale our operations tenfold in just a few days, a robust system is essential. Early on, during a major holiday, our service was down for six hours. It was a tough lesson to learn. This incident caused considerable disruption, with customers expressing frustration over undelivered orders and sellers losing trust in our platform. As a result, we now proactively prepare for peak periods by deploying additional servers, addressing product bugs, optimising team resources, and allocating more resources to customer support.
What are some common misconceptions businesses have about scaling? Can you please explain?
Scaling up isn’t a cure-all, you know. A common misconception is that scaling is simply about growing your sales or expanding into new markets. While that’s part of it, it’s really about whether your business is ready for that growth.
Especially when scaling rapidly, businesses can quickly find themselves overwhelmed. Staff shortages, technical glitches, and process breakdowns can all crop up, leading to a decline in service quality. And once your brand’s reputation takes a hit, it’s incredibly difficult to recover.
I can give you a real-world example from Flowwow. Because we deal with gifts, we experience significant peaks around holidays like Mother’s Day. Last time, we had to scale up our operations by a whopping 25 times! Even with a high level of automation, it’s a massive undertaking. We start preparing months in advance, stress-testing our systems, and identifying any bottlenecks. And when the big day arrives, the entire team pitches in.
On the flip side, take WeWork. Their aggressive expansion strategy is a classic case of scaling gone wrong. They opened countless locations, but without a solid foundation, they struggled to maintain occupancy rates. It’s a classic example of growth for growth’s sake, without a clear strategy.
How do you keep your team motivated during rapid growth or change?
Ah, that’s a great question, all about the soft skills I already mentioned. The truth is, keeping a team motivated during periods of rapid growth or change is a bit of an art form.
I find that open and honest communication is absolutely key. When everyone understands the bigger picture and their role in it, they feel more motivated and invested in the company’s success. We also place a lot of emphasis on recognizing and rewarding achievements. Another thing that really helps is involving the team in decision-making. It’s about empowering your team and making them feel like they’re part of something bigger.
Can you please give us your favourite “Life Lesson Quote” and share how it was relevant to you in your life?
A quote that’s always stuck with me is ‘Culture eats strategy for breakfast’. I’ve found in my experience that company culture isn’t something you can simply write down in a policy manual and distribute. It’s the beating heart of an organisation. It’s the spirit, the attitude, the way people interact with one another. And when that culture is strong, it can overcome any strategic challenge. Culture comes from the top, so hiring for senior roles is always challenging. So if I have the time to develop talent within the team, I prefer to take that route.
You are a person of great influence. If you could start a movement that would bring the most good to the most people, what would that be? You never know what your idea can trigger. 🙂
My husband’s work in the intersection of IT and medicine has opened my eyes to the challenges and opportunities within the healthcare industry. There’s so much potential to improve lives and save more lives.
If I could start a movement, I’d focus on combating cardiovascular disease, the leading cause of death. A simple solution could be to install defibrillators in public places, along with easy-to-follow instructions. This could significantly reduce mortality rates from unexpected cardiac arrest.
How can our readers further follow your work online?
It’s been a pleasure speaking with you! I hope this conversation has been insightful for your readers.
To follow my work and learn more about Flowwow, connect with me on LinkedIn, where I share news about Flowwow and provide insights about the ecommerce and tech industries. You can also visit the official website of Flowwow.
Thank you so much for sharing these important insights. We wish you continued success and good health!
Operational Scalability: Vera Modenova of Flowwow On How To Set Up Systems, Procedures, And People… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.