Did Your Startup Just Put On A Suit & Tie?

"All models are wrong, but some are useful." - George Box

(I was reminded of this quote earlier in the week by David Abel )

Did Your Startup Just Put On A Suit & Tie?

Rapid growth is a double-edged sword for small and medium-sized businesses. While it brings increased revenues and brand recognition, it can also spur significant organisational shifts that, if not managed properly, can deviate from the company's core culture. The Competing Values Theory (CVT), developed by Cameron, Quinn, and their colleagues, provides an insightful framework to understand these shifts.

The Quadrants and Shifts

The CVT model delineates organisations into four cultural quadrants (see pic)

For startups and innovative enterprises, the Create quadrant is often where they begin. These organisations prioritise agility, innovation, and risk-taking. However, as these entities grow rapidly, there's an inherent tug towards the Control quadrant, marked by stability and order.

as these entities grow rapidly, there's an inherent tug towards the Control quadrant

Why the Shift Occurs

1. Scaling Needs: As companies scale, the demand for processes, standardised procedures, and oversight becomes paramount. Ad-hoc strategies that worked for small teams may not suffice for larger, more dispersed teams.
2. Risk Aversion: With increased stakeholders, especially external investors, there's an elevated emphasis on predictability and risk management.
3. New Leadership: Often, rapid growth brings in executives experienced in managing larger organisations. These leaders tend to lean towards tried-and-tested hierarchical structures.

The Ramifications

What was once a vibrant, dynamic environment becomes stifled by bureaucracy

Uncontrolled shift can lead to disillusionment among early employees. What was once a vibrant, dynamic environment becomes stifled by bureaucracy. Moreover, the very innovation that fuelled growth can be curbed, as hierarchy suppresses experimentation.

Mitigating the Shift

• Stay Self-aware: Regularly use tools like the CVT to assess organisational culture. Recognise early signs of unwanted shifts and recalibrate.
• Balanced Leadership: While new leadership can bring valuable hierarchical experience, retaining leaders from the early days ensures the original ethos isn't lost.
• Marrying Both Worlds: Create hybrid models. For example, maintain innovation hubs within the organisation that operate on an Create model, while other sections operate with Control.
• Open Communication: Keep the dialogue open about cultural changes. Engage employees in discussions about growth and its implications, ensuring that they're part of the solution.
• Reinforce Values: Make organisational values a living part of daily operations. Regularly revisit and emphasise the company's mission and ethos.

Rapid growth doesn't necessarily mean an inevitable drift from Create to Control

Rapid growth doesn't necessarily mean an inevitable drift from Create to Control. By staying vigilant, understanding the reasons behind such shifts, and taking proactive measures, organisations can chart a growth story that aligns with their foundational values. As Cameron and Quinn's Competing Values Theory suggests, understanding these competing forces is the first step in managing them effectively.

Model of the Week - The Toxic Zoo

I've written previously about the HiPPO, but last week I came across this on LinkedIn: a whole zoo of toxic types. I'm sure we've all worked with each of these animals at some point in our careers.

Top Tips - Use Coaching Questions

Managers, do you often find your desk swamped with requests to resolve problems? While it's tempting to jump in and solve them, doing so can often disempower your team and perpetuate a cycle of dependency.

Switch your approach by embracing coaching-style questions. This not only reduces the load on you but also fosters problem-solving skills in your team members.

Instead of providing immediate solutions, try posing questions like:

• "What have you thought of so far?"
• "How have you approached similar challenges in the past?"
• "What's stopping you from moving forward?"
• "Who else in the team might have insights or experience with this?"
• "How would you like to see this resolved?"

By adopting a coaching mindset, you empower your team members to take ownership of their problems, encouraging proactive problem-solving and building a culture of self-reliance. Give it a try and watch your team flourish!

Other Stuff

• It's going to be a Scary Saturday this week as both of my daughters jump out of a plane!
• I had a great time with the Telford team of Kraft Heinz earlier this week, sharing The 6 Types of Working Genius model with them. Thanks to Pieter Jordaan and Louise Hayward for inviting me.
• My binge-watch for the past few days has been Hijack with Idris Elba (Sky TV). It's like Die Hard on a plane - really enjoyable.

Contemplative Cartoon