"So what is all the talk about, why is CULTURE so important to a startup?"
Great question, often asked by first-time entrepreneurs.
ANSWER: "Because startups are like small families, if the people don't get along with each other, the group turns dysfunctional and all hell breaks out."
Serial entrepreneurs have learned that in the School of Hard Knocks. That's why the first thing they begin working on is building the company culture. It takes a lot of hard work. It is very important. It is central to the success or failure of a new enterprise. It is all about people. It is why great VCs say "This is a people game."
GOOGLE HIRING PROCESS ABANDONS GPAS AND BRAINTEASERS.
That's the news today from Google. During startup years, the company was touting clever recruiting methods because that would get them the best performing people.
What did the head of HR find? "It's just a random mess." Not even Big Data analysis was able to figure out what worked well.
CULTURAL FIT IN THE WORKPLACE: HOW PERSONALITY AFFECTS HIRING AND TEAMWORK
“A fit is where there is congruence between the norms and values of the organization and those of the person.” (page 116) . . ."
No Big Data there. Just an understanding of people, how they behave and what you -- the leader -- want in them. Their personal behavioral preferences pressure founding CEOs like you to make difficult decisions.
Example: The introvert (lots of engineers) want privacy and quiet. Extroverts (business development, marketing, sales) want open space layouts and ritotus parties. So what is the CEO going to do about that?
Culture fit in a startup has profound implications for the new enterprise:
". . . employees who fit well with their organization, coworkers, and supervisor:
- had greater job satisfaction;
- identified more with their company;
- were more likely to remain with their organization;
- were more committed;
- showed superior job performance.
Studies of cultural fit across many countries have also found a relationship between cultural fit and mental and physical health — so if your job fits your personality, you’re less likely to exhibit signs of depression, anxiety, and the like, and you might live longer. . . ."
CREATIVE RECRUITING FOR CULTURE FIT
So what should you the founder do for hiring to fit your startup culture?
- Get creative. There are lots of ways to do that. To get your brain stimulated, take a look at this video, how startup Penny Arcade does it.
- Start with yourself. Glance at these tips for culture-fit recruiting, they will get you going.
BOTTOM LINE: To recruit well, focus on culture fit first. Serial entrepreneurs do that well, it's part of why they succeed time after time. When you can do that, you are on your way to mastering how to build an unfair competitive advantage for your startup.
I wish you The Best on your Adventure!