Conquering a Cultural Chasm

1 min read
Mar 27, 2017

cultural chasm

For a growing startup, the honeymoon period doesn’t last forever.

In fact, according to our research, 70% of organizations hit what we call a “cultural chasm” during their third or fourth year of business. This chasm is more pronounced the more rapidly a startup grows.

The good news is that startups are able to overcome the cultural chasm. And, once they do, employee happiness rebounds quite remarkably.

But how exactly can a startup and the employees that power it successfully navigate a cultural chasm? TINYpulse CEO David Niu and Mark Roberge, chief revenue officer at HubSpot, recently studied 100 early-stage ventures to find out why companies hit cultural chasms and what they can do to overcome them.

The bottom line? Investing heavily in building an awesome and engaging company culture on Day One should go a long way toward convincing a startup’s employees to stick around — even during the more challenging times.

The research also uncovered the importance of employees perceiving their organizations to be transparent as well as how employee recognition plays an integral role in engagement and retention — both of which can help companies conquer cultural chasms.

To read the full scope of their research, head over to the Harvard Business Review.



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