Ranjay Gulati

<article-ideainbrief class="article-ideainbrief">
 <h4 class="ideainbrief-title">Idea in Brief</h4>
 <div class="ideainbrief-contents">
  <h5>The Problem</h5>
  <p>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.</p>
  <h5>The Research</h5>
  <p>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).</p>
  <h5>The Solution</h5>
  <p>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.</p>
 </div>
</article-ideainbrief><p>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.</p>

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<p>There&#8217;s an essential, intangible <em>something</em> in start-ups&#8212;an energy, a soul. It inspires enthusiasm and fosters a sense of deep connection and mutual purpose. While this spirit persists, engagement is high and businesses keep their edge.</p>
<p>But all too often, companies lose their souls as they mature. Firms add new systems and structures and bring in experienced professionals&#8212;and in the process somehow crush their original energizing spirit. In research into more than a dozen fast-growth ventures and 200-plus interviews with founders and executives, the author has discovered how firms can overcome this problem. His work shows that there are three crucial dimensions to a start-up&#8217;s soul: <em>business intent,</em> or a loftier reason for being; unusually close <em>customer connections;</em> and an <em>employee experience</em> characterized by autonomy and creativity&#8212;by &#8220;voice&#8221; and &#8220;choice.&#8221; All three provide meaning to stakeholders.</p>
<p>Drawing on the experiences of Netflix, Warby Parker, Study Sapuri, and others, this article describes how sizable companies can still protect and nurture the three elements. Doing that is the secret to staying great as you grow.</p>

The Soul of a Start-Up

There’s an essential, intangible something in start-ups—an energy, a soul. It inspires enthusiasm and fosters a sense of deep connection and mutual purpose. While this spirit persists, engagement is high and businesses keep their edge. But all too often, companies lose their souls as they mature. Firms add new systems and structures and bring in experienced professionals—and in the process somehow crush their original energizing spirit. In research into more than a dozen fast-growth ventures and 200-plus interviews with founders and executives, the author has discovered how firms can overcome this problem. His work shows that there are three crucial dimensions to a start-up’s soul: business intent, or a loftier reason for being; unusually close customer connections; and an employee experience characterized by autonomy and creativity—by “voice” and “choice.” All three provide meaning to stakeholders. Drawing on the experiences of Netflix, Warby Parker, Study Sapuri, and others, this article describes how sizable companies can still protect and nurture the three elements. Doing that is the secret to staying great as you grow.

The Soul of a Start-Up

Summary.

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