From Startup to Scale-up – איך תשמור על הייחודיות שלך כדי להיות גדול?

Are core values just a corporate thing and not something truly authentic?

This is a claim we often hear: "We've gotten to where we are because everyone understands how things work here... we don't need to put it up on the wall. What's more, if we do hang it on the wall, people will treat the values with disdain."

The importance of organizational culture to business success is clear. I’ve written before that an organization without a clear culture—meaning one that isn’t driven by shared values—will typically be "anemic," characterized by low energy, inconsistency, and weak leadership. Reed Hastings, founder of Netflix, once said, "Weak cultures are diffuse: people act differently and don’t understand each other, making the organization political."

Rapid growth requires aggressive and focused actions—a clear definition of how a company operates will get you there

Okay, so we have a strong organizational culture! But is there a need to “define it”? Typically, the need to define organizational culture arises when the company grows. It’s not about a specific number of employees but rather about the dynamics that emerge when the founders—whose personalities initially shaped the culture—can no longer "touch" employees on a daily basis. Sometimes they’ve relocated to the U.S. to be closer to the market, and often, by this stage, managers serve as “buffers” between them and the rest of the team.

It becomes essential, therefore, to establish additional ways to define “how things are done here”—how decisions are made, how people interact—which is, in essence, the organizational culture.

And yes, it’s important to start early. Reid Hoffman, the founder of LinkedIn, said, “A clear definition of how a company operates is crucial early on because rapid growth requires aggressive and focused actions.” Whether you call it core values, DNA, or operating principles, this framework is the key to achieving rapid growth while maintaining your unique identity.

Do core values and diversity conflict with each other?

This is a strong argument because diversity promotes excellence in organizations, as I’ve discussed in a separate article. Indeed, if we rigidly adhere to specific persona, we might significantly narrow the "entry gate" to the organization—that is, the profile of individuals who can join and thrive within the company. However, it’s important to make a critical distinction here: when we talk about a unique identity, we’re referring to behaviors we highly value and behaviors that are unacceptable within the company.

In the two previous articles, I used a hypothetical startup where the founders outlined "operating principles" of friendship, customer focus, and boldness. Friendship is expressed through collaboration and care for individuals, customer focus through a deep understanding of customer needs and a strong commitment to fulfilling them, and boldness through creative freedom and the pursuit of ambitious solutions.

The desire to uphold these values does not in any way conflict with an organizational commitment to welcoming and creating an optimal environment for a wide range of individuals from diverse ethnic, religious, gender, and stylistic backgrounds—who can, of course, align with those values.

How does all of this relate to scaling up?

A smart combination of core values with openness to a wide variety of people enables rapid growth in the workforce, simply because it expands the pool of potential candidates. Moreover, having clear core values allows the HR leader and team to integrate them more effectively into the daily organizational routine.

While it may no longer be possible to see the founders "living the values" with the same intensity, you can ensure that the hiring process aligns with those core values (especially since the founders won’t always be able to interview every candidate). Employees can be recognized and receive feedback for excellence based on these values, promotion considerations can include adherence to these principles, and so on.

How do you build an HR infrastructure? Start with data and technology.

HR managers in startups who want to build an HR infrastructure often ask me where to begin—should they define recruitment processes, build HR procedures?

I believe that two of the most important things to start with are data and technology. First, during rapid growth, you must build a strong and efficient "recruiting machine." Dedicated Software should replace Excel at an early stage for efficiency and to provide insights into bottlenecks that could prevent us from hiring quickly enough to outpace aggressive competition. Startups rely heavily on data, sometimes using it for daily decision-making, and recruitment must align with that.

It doesn’t end with hiring new people. It’s crucial to measure various parameters related to organizational excellence from an early stage—where our stars are coming from, how many employees are leaving, after how long, why, where they go, and more. Innovative organizational software also provides a great user experience, which is essential for excellence in HR. Our people, who are key partners in HR processes, expect a simple and convenient interface to fill out interview summaries or update employee goals—and this should be provided early on in the life of the organization.

The world of HR technology is exploding with innovation and creative solutions. HR professionals in today’s era must stay updated and offer innovative solutions in recruitment, employee development, and organizational communication.

Be the Hero of Your Own Journey

In the early days of the startup, there was no need to focus on personal development. The constant need of hands-on work provided almost endless opportunities for experimentation and learning. When you reach fifty or a hundred people, you still need to allow your employees to "grow with the company," but this now requires a bit of intention or guidance.

At some point, management must understand that while their people are eager to be part of the company’s journey, they also need their own journey. Be the hero of their own journey, or in simpler terms, they need a role or experience that supports their personal development path.

How do you do this? One key factor is "personalization"—generic solutions like courses or mentoring will be less effective. People expect a developmental solution tailored to their own path. This is what millennials were accustomed to growing up, but it's no longer just millennials—it's the current life experience for all of us, and naturally, it will take place in the workplace as well.

Therefore, you need to be attentive to the aspirations and needs of your employees and provide personalized solutions: one may want to meet with one of the founders once a month, another may want to join a different project part-time, and one might be passionate about introducing mindfulness into the organization. It’s worth going with the flow, even if you don’t see a clear ROI (Return on Investment). The benefit is having an employee who is at their best.

For more reading on the challenge of leading people in today’s business world...

Another key factor is training managers to be coaches themselves. We place high expectations on team leaders, and they need to be trained to meet them. This training can be provided through a course, personal coaching, external consultants, or by HR managers.

It’s also important to emphasize—keep solutions simple and transparent. Avoid complex career paths or mapping talent in 16 boxes. This simply doesn't fit, especially in a startup. Keep it simple.