5 of the Most Common Misunderstandings About Startups - Becoming a Successful Startup
What are the common misunderstandings about startups and their starting journey to become successful?
There are many shrouding clouds around startups and their varying success. Some startups fail and eventually become successful, some succeed, and eventually, fail.
This is true for this statement:
"Innovation by itself by installing a slide? Startups will slip if you just follow them."
It's a bit of a provocative statement.
Professor Gary Pisano of Harvard Business School conducted an interview with Harvard Business Review on the theme of 'The Cold Truth About Innovative Organizational Culture' in 2019.
It can be said that this is the golden age of startups, where many can become exponentially successful.
Not just in business, but also in the job market and the job market.
The popularity of startups is steadily increasing among college students’ preference for employment.
Then, why do most people move from their corporate jobs to become startups with the dream of becoming successful?
Growth opportunities, the attractiveness of stock options, horizontal and autonomous organizational culture, and guarantee of work-life balance are cited as the main reasons.
However, you should not assume that only the good things seen in the media are the real face of a startup.
There is no innovation without pain.
For a startup to grow into a big company through innovation, there are inconvenient truths that it must face.
Let's go back to Professor Gary Pisano's interview. To summarize the key points:
'It is a misconception to regard a pleasant atmosphere such as lunch buffets, naps in hammocks, massage rooms, and fitness centers, and mobile slides as the essence of innovative culture'
'For a startup to grow into an innovative company, it must overcome an arduous process.
As companies grow, discipline is needed.”
Professor Gary Pisano describes five characteristics that make startups attractive. or in the quote, "Successful"
1) Tolerating failure
2) Willingness to continue the experiment
3) A sense of psychological safety
4) Teamwork
5) Horizontal structure
It seems to be a typical characteristic of a company that anyone wants to join and work for. However, these factors alone will never succeed in innovation.
1. Encouraging Failure ≠ Tolerating Incompetence
How you view failure is one of the defining characteristics of a startup.
In a startup, failure is a natural and necessary process.
However, it is difficult for organizations to assume that all failures are inevitable.
A culture that encourages failure must be prevented from becoming a culture that tolerates incompetence.
Two things are necessary to turn the culture of tolerating failure into a strength in a startup.
First, you need to create a structure that learns from failure.
What was the cause of failure, what you learned, and what preparations should be made to avoid repeating the same failure in the future should be recorded and shared?
Learning from failure,
Lesson learned is what you need.
However, Failure is meaningless if it ends on its own.
Second, a culture that does not tolerate incompetence is also important.
Innovators are very cold-hearted about individual incompetence. Google, Amazon, and Facebook all operate a thorough performance evaluation system for individuals.
But Failure and incompetence are different. Failures are necessary where new challenges lead to learning, but each inability to lower expectations must be evaluated and acted on soberly.
You can see failure, but not incompetence.
2. Continuous experimentation ≠ Reckless risk management
to create new, Bold experimentation and continuous attempts are essential.
Here are some things to keep in mind. Innovation is also constrained by limited resources.
Experimentation is essential for innovation. However, it must be carried out at an acceptable level of risk.
Even if it is uncomfortable, it is necessary to follow the rules and create an environment where you can experiment.
In summary, Experiment boldly, but with strict discipline.
3. Psychological safety ≠ a comfortable state
'Environment, where one can freely express one's opinion without fear and is not harmed by it, is a term that defines psychological safety.
There is a common misconception about psychological safety.
Psychological safety is the state of being mentally comfortable.
Psychological safety is not an end in itself.
It is only a basis for giving and receiving honest feedback.
If you only have a sense of psychological safety, avoid conflicts, and fear conflict, you become an organization where there is only comfort.
Truthfully, Innovators are brutally honest.
However, Companies that fall out of the innovation process have only consideration and kindness.
The uncomfortable truth is that I too have to be one of those people who give and receive honest feedback.
Psychological safety must be predicated on harsh honesty.
4. Don't Misunderstand: Emphasis on teamwork ≠ Ignoring free riders
Collaboration is important. In today's era where creativity and innovation are so important, an individual can't achieve outstanding performance alone without teamwork and collaboration.
Employees who can't collaborate aren't even good people.
However, not every decision should be designed solely around teamwork and collaboration.
For example, there are several typical problems. Slow speed, mediocre results, free-rider encounters.
When you only emphasize collaboration and are equally rewarded for performance, key talent loses a reason to do better.
Freeriders in the organization are created when you get the same recognition even if you work moderately.
A culture that values collaboration is essential.
In addition, we need to create a structure that places responsibilities on individuals.
Blurry of personal achievements and responsibilities creates a culture of irresponsibility in which no one is held accountable.
5. Horizontal Structure ≠ Lack of Leadership
Moving from a large company to the startups' world can hardly be called successful in the process of moving itself.
Many employees also cite a horizontal work culture as an important reason for turnover
But rather the opposite. In a horizontal structure, leadership becomes even more important.
In a horizontal structure with many stakeholders and free voices for each other, without strong leadership, the direction is lost, decisions are slowed, and organizations are more likely to be confused.
The first is strategic direction-setting leadership
In a horizontal structure where everyone has their point of view and various opinions, the leader's decision is important.
The second is leadership with clear feedback.
It's human nature to want to know if I'm doing well or not if I'm in the right direction or not.
The third is overcommunication leadership.
Important words such as vision, strategy, and organizational operating principles must be continued.
Many leaders don't say the same thing over and over, presuming that employees will hate it.
Though It's uncomfortable, you have to keep saying what you need to say.
So, when you feel bored, your employees start to understand. What a horizontal organization need is not a good leader.
The horizontal structure must be supported by strong leadership.
The important thing is to break the misconceptions about innovative companies and face the uncomfortable truths courageously.
Indeed, the greatest asset for innovation is the mindset of our members.
More importantly, the more employees who do not think that our company is a convenient and enjoyable place to work, but a place where it is arduous but meaningful to change the world, the more likely it is to succeed as an innovative company.
Now, in order to become one of the successful startups in today's time, don't misunderstand nor confuse these characteristics with one another!
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