The Impact of Workplace Culture on Fitness to Scale

After poor market fit and failing to raise sufficient capital, not having the right team in place is the third most common reason why start-ups fail, according to this research by Albion VC.
 
Key points include:
  • Leadership behaviour is the primary influencer of workplace culture: In addition to setting the direction of the company, leaders create the conditions for working environments through their values, the way they behave and their biases.
  • Fitness to Scale is an accurate predictor of commercial out-performance: The founders of out-performing companies are highly conscious of the importance of workplace culture and are generally proud of the one that exists in their organisation. 
  • A successful workplace culture emphasises caring, learning and results: Companies described as ‘collaborative’, ‘warm’ and ‘social’ by their employees were more likely to enjoy improved teamwork, engagement and communication.




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