David Cummings on Startups

When Does Startup Culture Start

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David Cummings

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Social Sciences

Talking with an entrepreneur recently we started to debate when the culture of a startup takes place. My position is that is occurs immediately with the co-founders and builds out with each additional hire. Her position is that the startup needs 15+ employees to have enough personalities and stories to fully articulate the corporate culture.

Here are a few ideas to keep in mind when thinking through corporate culture in a startup:

  • Corporate culture is the only long-term sustainable competitive advantage within your control
  • Corporate culture starts immediately with the co-founders and strengthens or weakens with every new hire
  • The sooner the culture is defined and clarified the better for determining future hire fit
  • Getting the wrong people off the bus and the right people on the bus is the most important leadership job

It took me seven years of being a startup CEO before I really appreciated corporate culture and now I’m a huge proponent of having a strong culture. The corporate culture starts on day one and needs to consciously nurtured forever.

What else? What are you thoughts as to when corporate culture starts?

Comments

3 responses to “When Does Startup Culture Start”

  1. Jeff Barnes Avatar
    Jeff Barnes

    David,

    I agree that the founders can start defining a corporate culture but once there is a management team below them they become the guardians and leaders of the culture because of their more regular contact with the staff and clients.

    I well remember my previous company (when less than 50 employees) had a corporate culture of only selling to SMB’s through sales reps scattered throughout the four corners of the US. Gradually this changed to one of selling to Enterprise accounts for two reasons – these accounts found out about the software and wanted to use it and the reps could make their targets quicker and easier by having bigger average contract values (ACV) The result? Much bigger company and a different corporate culture within 18 months.

    Reply
  2. AlexG Avatar
    AlexG

    I agree about the corporate culture but must say there are also things like employees personalities and financial constrains. Especially when you are on a startup.
    For example if you want to maximize company’s productivity you have to take care of each person’s preferences and motivation. And when you are on a startup often you have financial constrains and you need to find agreements between everyone while having smaller salaries.
    Of course, all this also makes part of corporate culture in wide sense.
    But what would you advice to a startup? In practical application?

    Reply
  3. — Not Only Luck Avatar
    — Not Only Luck

    […] is really important. In fact, as David Cummings said, “Corporate culture is the only long-term sustainable competitive advantage within your […]

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