Idea in Brief
The Problem
As companies grow, they need new systems and structures to manage their evolving businesses. Too often, however, they lose sight of the original spirit and essence that during their early days attracted and energized stakeholders.
The Research
Interviews with more than 200 founders and executives at a dozen fast-growth ventures show not only that this “start-up soul” is real but that it can be broken down into three key elements: business intent (the company’s reason for being); customer connection (a crystal clear focus on those being served and what they want); and employee experience (allowing people to have voice and choice).
The Solution
If a company follows the lead of Warby Parker, Netflix, and BlackRock and thinks more consciously about what it needs to do to keep the three elements at the forefront of its strategy and daily operations, it can preserve its soul—or revive it.
There’s an essential, intangible something in start-ups—an energy, a soul. Company founders sense its presence. So do early employees and customers. It inspires people to contribute their talent, money, and enthusiasm and fosters a sense of deep connection and mutual purpose. As long as this spirit persists, engagement is high and start-ups remain agile and innovative, spurring growth. But when it vanishes, ventures can falter, and everyone perceives the loss—something special is gone.