Your portfolio company is experiencing rapid growth. How do you ensure its culture and values remain intact?
As your portfolio company grows quickly, keeping its culture alive is key. Here's how:
How have you maintained your company's essence during periods of growth?
Your portfolio company is experiencing rapid growth. How do you ensure its culture and values remain intact?
As your portfolio company grows quickly, keeping its culture alive is key. Here's how:
How have you maintained your company's essence during periods of growth?
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When a company grows fast, keeping its culture strong requires deliberate action. Start by clearly documenting your core values and sharing stories that show these values in action. Make culture a key part of your hiring process - look for people who naturally fit your values, not just those with the right skills. Create regular touchpoints like weekly team meetings and monthly culture workshops to reinforce what matters. Train your leaders to be culture champions and reward behaviors that align with your values. Keep communication channels open across all levels, and regularly gather feedback about how people feel about the company culture. Most importantly, lead by example and make sure executive actions match the stated values.
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"Culture eats strategy for breakfast". Another (less) famous saying is that the first 10 employees set the company culture for years. So, hiring leaders fully identified with the founders culture is key. Also, as stated in Spencer Stuart's "Going Deeper: Why the Future of Leadership is Beneath the Surface" it is impossible for CEO to control everything inside the corporation, in an ever-changing landscape. So communicating clear and empowering people is key to make sure every employee walks in the right direction,
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When a portfolio company experiences rapid growth, it’s crucial to navigate this exciting phase with care. Start by ensuring you have the right infrastructure in place to support scaling—think about investing in systems and talent that can manage increased demand. Also, keep a close eye on cash flow; you don’t want to trip over your own success. Fostering a strong company culture is vital as new team members join, so prioritize open communication and employee engagement. Lastly, listening to customer feedback can help you adapt and refine your offerings. Embracing these strategies will set the foundation for sustained growth and success!
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"They are who we thought they were" Famous quote from former Arizona Cardinals Head Coach Dennis Green (check it out if you haven't seen the video). When investing in a company that grows rapidly, it doesn't change what made you invest in them in the first place. Remind yourself of the core attributes that made you want to jump on the "train" with them and ensure they have the tools & talent to keep the culture, even when flying at greater heights. Books I recommend to my founders in times of change (either growth or decline): - The Obstacle is the Way by Ryan Holiday - Predictable Success by Les McKeown - The Innovator's Dilemma by Clayton Christensen Onwards and Upwards!
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The best thing you can do is make sure that the exec team stays true to their nature and their vision as they grow and scale. Often companies that grow rapidly experience culture loss because they aren't reminded of what got them there in the first place. Additionally, continue to encourage high growth startups to hire more slowly. People feel an urge when they have capital and need, but it's best to make sure that people align with the vision and the culture appropriately.
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