Startups work in small teams. Working in small teams turns out to be pretty unique. Here, I’d like to discuss just some of the ways this “small ball” teamwork mentality plays out for the benefit of the company.
People say that startups are all about empowerment, flat hierarchy, freedom, etc. These people say it as though large companies, in contrast, are all about the opposite. Obviously, neither is entirely true. You can’t just make a startup lack hierarchy because … well, it’s a startup. The business and people dictate the structure and culture (not the other way around). So, to better understand what startup life will be like, you have to really look closely at the business and people.
Startups attract a breed of people who are remarkably driven. I’ve said in the past that startups must recruit individuals who want to contribute disproportionately. At the most basic of levels, a startup has to provide an environment and structure in which these people can thrive. Empowerment is absolutely critical. A startup can put in place any type of structure but if it gets the empowerment part wrong, lights out … you’re in deep trouble.
Empowerment is not just a condition but also an active pursuit.
It’s worth noting that empowerment and accountability enjoy a close proximity to one another. These are also directly proportional – less of one means less of the other. So, if you want people to be accountable, you must make sure that they are also empowered. Conversely, if you want people to exceed your expectations you need to make sure they’re empowered. When empowerment is lacking (i.e., no control), people simply refuse to be accountable.
Any discussion of empowerment starts with levels of commitment. There are two kinds of commitment. First, there exists external commitment at every organization. This is when everything is drawn up or created by others (usually management) and you sign up for it. Second, there is internal commitment. This is when you define everything for yourself and commit to it. As long as businesses exist, internal commitments exist because businesses employ people and people are always internally committed (if not to you, then to something else).
Internal commitments are strong and highly pronounced in small teams.
When does true empowerment exist? Genuine empowerment exists when those who set the external commitments (i.e., management) have their own internal commitments set up to help spawn and grow others’ internal commitments. I hope this makes sense. It’s a very simple concept but one that – in my opinion – is very difficult to execute. If external commitments are crafted by managers who seek to use their own internal commitments to solidify external commitments, it leads to trouble. This is precisely why it’s difficult for many managers with big company experience to effectively lead teams at startups. You can get away with some weak personal commitments at large companies so long as external commitments are met (i.e., bare minimum to reach “goals”).
Accountability can’t exist without strong internal commitments.
Who needs accountability when you’re reaching goals all the time, right? You need accountability when goals are not being met. In startups, the goals are usually not bunts or base hits, they are home runs and triples (relatively speaking). In this scenario, accountability is frequently sought. Thus, getting internal commitments aligned not only to external commitments but aligned to every other internal commitment is crucial.
Signs of Trouble
Here are some signs that your startup is suffering from weak internal commitments:
1) You can’t smell the sacrifice. Since startup stars are super driven, they usually do not shy away from sacrifice. Actually, they seek opportunities to sacrifice – their time, egos, and even self-interest – for the startup’s success. When people are not making overt sacrifices, you’re probably in trouble.
2) External commitments are unreachable. Large companies under-promise and over-deliver. Startups promise then deliver. It’s an exact formula. Setting unreachable external commitments is a specific sign of missing accountability. When those commitments are not reached, personal commitments of people will keep gravitating downward until it hits their morale. When morale suffers at a startup, it is game over.
3) External commitments are too weak. Fortunately, I’ve never been at a startup that had weak external commitments (whether goals, tasks, performance expectations, or importance of initiatives). But, I have seen startups up close that had NO clear cut external commitments at all. I’ve seen startups create artificial goals at the last minute before Board meetings to temporarily satisfy VCs. These are not commitments. I’m considering the lack of any commitments as weak commitments. This is equally as dangerous to a startup as unreachable commitments.
4) Ask every single individual, “What’s in it for you?” Assuming a very positive outcome for your startup, force them to tell you why and how their individual contribution will have had a deep, meaningful impact on that success. You need to get convincing answers. Otherwise, it’s a sign of weak personal commitment. We can’t read minds but we should listen. To listen, we must ask. Average people assume a lot and ask too little. Smart people assume little and ask a lot. Tech startups are filled with very smart people so I’m sometimes puzzled why people do not ask more frequently. When it comes to something as fundamental as getting everyone internally – and, personally - committed, you need to ask them directly (not just tell them) “What’s in it for you?”
- John
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