Building a Strong Founding Culture for Business Success

This week, let’s talk about something that can make or break a company or team: its founding culture. Every startup and company begins with a particular culture. And though it might seem secondary to growth or product development, the truth is that the founding culture defines the way people work together, solve problems, and grow as a team. It shapes the future.

One Topic: The Three Founding Culture Models

There are three main models when it comes to founding cultures:

1. The Star Model: This approach focuses on hiring top talent. Companies in this model often search for the best and brightest, believing that extraordinary people will drive extraordinary results. Tech startups like Google early on followed this path, aiming to build teams full of innovators. The benefit? High performance, but it can be challenging to maintain if those stars lack shared values.
2. The Professional Model: Here, the focus is on assembling a team based on specific skills. Think of consulting or law firms that require specialized expertise. This model ensures a reliable skill base, yet sometimes people don’t feel a deep connection to the company beyond their roles. It’s highly effective when technical skills are critical, but it may lack the cohesion and motivation found in other models.
3. The Commitment Model: This model centers around shared values and emotional bonds, creating a family-like environment. When team members truly believe in the company’s mission, they’re more likely to go the extra mile, make sacrifices, and contribute to a positive culture. Companies like Southwest Airlines famously use this approach to build a loyal workforce dedicated to customer service. Research shows that this commitment model often leads to the highest levels of motivation and loyalty.

Which Model Works Best for Startups?

For startups, the commitment model often proves most successful. Startups usually face resource constraints and high uncertainty, making it essential for teams to work closely, stay resilient, and support each other. When team members share a belief in the company’s mission and values, they’re more likely to go the extra mile, help each other out, and stay motivated through challenging times. Research supports this: companies with commitment cultures tend to have higher employee engagement and lower turnover, crucial factors for long-term success.

When to Use Each Model

• Star Model: Best when specialized skills and innovation are necessary, such as in R&D or tech-based startups.
• Professional Model: Works well in industries that need technical expertise, like law, finance, or consulting.
• Commitment Model: Highly effective for mission-driven startups, social enterprises, and companies prioritizing long-term growth and employee engagement.

Why Commitment Wins

While each model has its strengths, research suggests the commitment model often yields the most lasting success. When a team is deeply aligned with shared values, they’re resilient, motivated, and more willing to collaborate through challenges. The key is finding and developing people who believe in the company’s mission, vision, and goals.

Whether you’re founding a startup or reshaping an existing team, think about which model best suits your goals. A strong founding culture, especially one based on commitment, can be your company’s secret weapon, shaping not only the success of your team but also the long-term resilience of your organization. The culture you build today is the legacy you’ll leave tomorrow.

Read last week’s JustDraft newsletter about how belief helps you achieve your goals

Two Quotes

Great culture isn’t what’s written on the walls; it’s what’s felt in the work

A shared mission builds a team; shared values make it strong.

One Passage

The culture within a company defines not only its present but its future. It shapes who joins the team, how they work together, and ultimately, what they achieve. When people feel part of something they believe in, they bring their full selves to work. They’re not just employees; they’re contributors to a shared vision. Leaders have the unique role of shaping this environment, ensuring it nurtures growth, creativity, and resilience. A great culture isn’t dictated but cultivated, grown by the actions and decisions of every team member.

From The Culture Code by Daniel Coyle