For Culture To Be A Real Differentiator For Any Startup, It Needs To Be Embodied As DNA Of The Organization: Vanishri Deshpande, ConnectEcho Talent Advisors
The Indian startup ecosystem is going through its ebb and flow, but very rarely do we realize that one major factor why startups fail is because of culture
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The dictionary meaning of DNA is, 'what makes you uniquely you'. DNA of every individual is unique and is the first differentiator besides all the other qualities that may make him or her unique. Interesting isn't it? But how many of us are aware or have any idea about our own DNA? DNA is an integral part of an individual; something that we are aware of but have never spent time thinking about.
For most founders, their startup is no less than a living being. Founders put their sweat, blood, and tears in their startups and just like living beings; a startup grows, matures and evolves. But what makes a startup truly unique? Well, many will say idea or team but the real differentiator in any organization is its culture. In that sense, culture is the DNA of any company. But unfortunately how many founders realize this or have looked at their company culture through this lens?
Culturro's team was in conversation with Vanishri Deshpande, CEO & Founder of ConnectEcho Talent Advisors to understand why culture is not at the center stage in today's startups. Prior to starting ConnectEcho, Vani was VP - HR at Nexus Venture Partners and has closely worked with several Nexus portfolio companies on topics of talent management, culture and strategic HR. Vani clearly understands today's startup landscape and their challenges. She says, "Unfortunately culture in today's corporate setting is more of hear-say thing. For culture to be a real differentiator, it needs to be embodied as if it's your DNA, only then will it add value to a company". But somehow this never happens. Employees are rarely culturally attuned and the real reason for this is the lack of attention from founders on the topic. Vani says, "Today, startups are so focused on growth and scale that they forget their first principles. They forget what defines them and they neglect the core in their organization - culture".
Many times, the reason for the lack of attention on workplace culture is written off as a founder mindset problem. But Vani has a different view on this. She says, "Today's founders are somewhat aware that they need to focus on creating a good culture right from the beginning, but unfortunately this thought is not at a conscious level. By the time this thought gains momentum, a culture has already set in and in most cases is mushrooming within the organization". It is very important that startup founders are not just aware but put their thought into practice to define, measure, align and emphasize the culture in their organization from the very beginning.
The Indian startup ecosystem is going through its ebb and flow, but very rarely do we realize that one major factor why startups fail is because of culture. Vani adds, "A major reason why startups don't make it to the end is because founders failed to make culture the DNA of the organization." Now, many may argue that this impact on startup failure is small but Vani iterates the opposite. She says, "If you want to have the right culture in your startup, it is important that every employee that you hire is culturally aligned. We don't realize this, but the financial and negative impact of a bad hire or culturally misaligned hire is 3X more than a positive impact of a good hire". In this sense, startups should heavily invest in building and emphasizing their culture at all levels.
One way to achieve this is to focus on creating the right workplace experience in the startup. Most startups that raise money spend a fair bit on making their offices swanky or providing extra perks to employees. Vani argues, "What you need is a comfortable and thriving workplace environment. Not swanky! It's important that you spend money on creating the right experiences for your employees. Experiences, which will enable employees to form right beliefs and take right actions". To create the right workplace experience for employees, it is important founders become culture evangelist and lay the foundation by ensuring policies, processes and leadership are in line with the culture in the organization.
VC's, investors and HR department in an organization can be instrumental in handholding, course correcting and emphasizing the culture agenda but at the end of the day it's the founders who have the onus to make culture the DNA of an organization.
Workplace Experience™ Ranking 2017 is a digital initiative conceptualized by Culturro and co-branded with BW Businessworld. This is first of its kind initiative for the startup ecosystem in India to promote and recognize startups who create the best experiences for their employees.
To know more about the initiative and to participate, visit here