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It's no secret that every successful company needs a solid, identifiable corporate culture. Statistics show that 88% of job seekers believe a healthy work culture is essential to success, and younger generations are now prioritizing “cultural fit” when looking for a job. Not surprisingly, a strong company culture that directly engages employees leads to an increase in performance of up to 202%.
With such compelling data, it's shocking how often startups fail in this regard. As a successful CEO and co-founder, here are four common mistakes I've seen and how you can avoid them on your startup journey.
Related: Lack of Trust – What Does It Mean for Your Business?
1. Not knowing when to transition from the “stem” phase to more structured processes
My company, Flowwow, is currently in that awkward “adolescent phase” where we are no longer a startup “tribe” but not yet a large company. This creates tension because those who have been there from the beginning often romanticize “the good old days” and refuse to implement more structured processes.
Since this is often a challenging phase for brands, many people stick to the “startup family” model for too long, where everyone does everything. This can damage morale, motivation and long-term growth and increase the risk of a brand faltering at a critical stage. We have tried to avoid this mistake by ensuring that our overall mission closely aligns with the values of everyone we hire.
We ensure everyone feels supported and heard and confirm that everyone understands our flexible and adaptable processes. We also help integrate each person into a team that best suits their skills and personality so that they feel useful, fulfilled and engaged. Remember, data shows that 85% of employees feel disengaged, but 69% say all they need to feel happier and more engaged is recognition and recognition.
2. Not allowing your culture to evolve with the brand
Some camps believe brands should remain consistent over time, but we believe evolving based on the market and trends is far better for overall longevity.
Remember, as your brand grows and matures, so should your company culture. As a founder, it is your job to change the internal and external perception of your brand during these transitional times. Your core values should remain the same, but how you act on them makes the difference.
For example, when Flowwow moved from a flower service to a gift marketplace model, the founder's job was not only to redesign the public message, but also to ensure that we highlighted the things that matter most to us as a brand: openness, Transparency and quality.
By focusing on this, we didn't have to do anything special to manage our culture. it developed naturally from authentically shared values. These principles have remained the same over time, but our “values-driven” actions are more tangible: we provide resources such as language lessons, psychological support and health insurance to show the team that our values are more than just words.
Related: How to Lead Transparently in Times of Uncertainty
3. Failure to establish top-down communication
I've heard of many startups that have failed or stalled because the founding team felt like they had to hide hardships or only tell employees what they thought was “necessary.” This often happens with good intentions. They mistakenly assume that hearing about a crisis or difficult road ahead will demotivate or alarm employees. Don't fall into this trap! You hired these people because you trust and believe in them. Prove this by being transparent and allowing them to support you and each other.
When management provides open lines of communication, employees feel empowered to take responsibility, contribute fresh ideas, and make decisions in the best interest of the brand. HBR points out that good communication from management is an important factor in employee engagement.
4. Forgetting that the founder is the heart and soul of the brand
Founders often fall into the trap of playing Superman (or woman): they feel like they have to be constantly involved in everything, usually at the expense of their well-being. This may be necessary at first, but a founder's ultimate goal should be to find and build a core team that can be trusted to handle most day-to-day tasks.
A strong, compelling company culture needs an axis of rotation, and that axis should be the founder. Communicate your values to each person you hire, then let all the things that made you hire them shine through. Use your influence and passion to improve, strengthen and lead the company. By acting as a safe, trusted haven for your team, you allow your company culture to unfold organically and resonate with both employees and customers.
It is important to avoid burnout. You are a role model for everyone, so it is your job to take care of your mental well-being and continually work to understand and manage your emotional impulses. Recognize your limits, act within those limits, and show your team that you are human. This lays the foundation for a healthy, honest atmosphere.
Related: How transparency helps scale your business
The future of work is now, so don’t let your culture lag behind
Company culture is critical to the current and future health and longevity of an organization. Observe factors like absenteeism, attendance, and even body language to get the full picture of whether your brand's vibe needs an overhaul. Remember that a healthy organization balances stability and growth, and lasting improvements must always come from the top down.
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