Brad Feld, co-founder of startup accelerator TechStars and managing director at VC firm The Foundry Group, says that too many startups focus on hiring for competency over cultural fit. "Many people default into choosing people who have high competence but a low cultural fit," he writes. "This is a deadly mistake in a startup, as this is exactly the wrong person to hire."
Instead, leaders should hire people who see the much bigger picture, and can truly help a company thrive by aligning their career goals with a company's values and mission.
One of the most influential leadership books in recent years, Tribal Leadership, shows just how important culture is over nearly anything else — even a brilliant idea. According to the authors, there are five stages of leadership and culture, with the 5th leading to a "no fear" environment that inspires innovation and maximum productivity:
"Tribal leaders focus their efforts on building the tribe — or more precisely, upgrading the tribal culture. If they are successful, the tribe recognizes them as the leaders, giving them top effort, cult like loyalty, and a track record of success. Divisions and companies run by Tribal Leaders set the standard of performance in their industries, from productivity and profitability to employee retention. They are talent magnets, with people so eager to work for the leader that they will take a pay cut if necessary."
Authors David Logan, John King and Halee Fischer-Wright lay out the dramatic effects of a positive culture with the right hires, including: