Beautiful Inside-Out

Deepanshu Sharma

What comes to your mind when you think of the start-up phenomenon?

I think of a lot of good things such, as solving a real problem, unique ideas, out-of-the-box solutions, nifty apps, angels, VCs, the promise of scale, GMVs, valuation… Among the many shut-downs and take-overs, there are some mergers and then for a lucky few the IPO. Aah, nirvana!

If we peek into history, there are some basics which differentiated great companies from merely good ones. GE, Ford Motor Company, Toyota, were all start-ups at some stage but they all stood for something in specific, and it was core to their very existence and differentiation. They went on to thrive over time, generations, technology revolutions and even financial upheavals. Stuff like, unique proposition, profits, optimization, monetization, long-term growth, customer loyalty, organisation building and Peter Drucker’s favourite, ‘culture’ have been fundamentals for any business to survive. While in the start-up phase you can dodge these for some time, but it does not pay to stretch the limits and test out the break-point for these timeless and existential basics.

Why is it that ever so often these time tested basics are ignored by the start-ups, or put to the back-burner? If culture indeed eats strategy for breakfast, why is it that it is not among the top priority items for most start-ups?

While it is right that PoCs, funds, reference customers, growth, scale, etc. are crucial, but the foundations must be laid before the walls are erected. After all, businesses are built to scale and survive the tide of time.

So, when is the right time for a start-up to start indulging in these seemingly low-priority imperatives?

I believe that it is critical for all stakeholders to give due importance to the foundational elements right from the beginning so that you don’t end up tearing down the walls to embed the wiring and plumbing.

So, who is then responsible to set the ball rolling?

It must start with the tone at the top. The leader has to take accountability for careful organisation building and recognise the need to invest in sound HR practices. It gets better if you have already articulated a clear organisational vision and the leadership team agrees on a set of shared values which can be used as anchors for building the desired culture. Purposefully, not by happenstance…  it can’t be left to evolution and chance.

There are examples galore where clarity of purpose and a strong culture has delivered results and established the foundation for a profitable and long lasting business which can withstand competitive onslaught and evolving business environment. Think of Coca Cola’s “heritage”, Pixar’s “open atrium”, Google’s “don’t be evil” or the Tata Group’s “commitment to the communities”. These are all examples of companies investing in designing their culture, rooted in their vision and embedded in both their practices and story-telling. It’s a careful and intentional exercise, which takes leadership commitment and organisational alignment.

While we are at it, it would be good to remember that merely relying on what has worked in the past is no recipe for success today. Especially for organisations who want to thrive in today’s world, in both the traditional and the new-age businesses.

Finally, what does it take to create an organisation which has the foundational elements to make it beautiful inside out?

Just two things – the quintessential ‘leadership intent’ and ‘action’. In that order, with little time gap between the two.

#strategy #execution #leadership #culture #commitment #startups