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  • July–August 2019
  • Article
  • Harvard Business Review

The Soul of a Startup

By: Ranjay Gulati
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Abstract

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.

Keywords

Business Startups; Mission and Purpose; Customer Focus and Relationships; Employees; Creativity; Business Growth and Maturation

Citation

Gulati, Ranjay. "The Soul of a Startup." Harvard Business Review 97, no. 4 (July–August 2019): 85–91.
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About The Author

Ranjay Gulati

Organizational Behavior
→More Publications

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More from the Author
  • First to Fight? Culture, Tradition and the United States Marine Corps (USMC) By: Ranjay Gulati, Akhil Iyer and Joel Malkin
  • Veeva Systems and the Transformation to a Public Benefit Corporation By: Ranjay Gulati and Allison M. Ciechanover
  • Nick Saban: Embracing 'The Process' of Sustaining Success By: Ranjay Gulati and Eppa Rixey
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