Start-up: Originating Strategy and Culture

To solve the problems associated with organizations starting from scratch, many spotlight companies living in the fast lane, whose emerging corporate cultures can be hard to find. But managers in such enterprises must realize from the outset that they are either building a forceful culture or creating a Frankenstein. During the early-growth phase, strategy and culture tend to separate unless a leader guides and coordinates them. Uncontrolled strategy and culture can undermine the best product or service.

What is Excellence?

Whatever your definition of excellence, you would probably agree that such experiences deserve the label. In fact, we seem to easily recognize excellence. Such recognizable excellence extends to the business world. Products such as Kleenex, Xerox machines, and scotch tape have come to refer generically to all similar products, regardless of manufacturer. When we think of American companies that embody excellence, IBM, Hewlett-Packard, Citicorp, Delta Airlines, McDonald’s, General Electric, and American Express leap to mind. How did such companies create models of excellence? Did they provide outstanding products and services to their customers? Did they bestow unparalleled benefits on their employees? Did they annual reports consistently display record growth and earnings? Yes, they accomplished all these goals, but they did more. They exploited ideas, inventions, and innovations; they never rested on their laurels but always sought to pioneer products and services; and they promoted and rewarded individual leaders within their ranks.

Short-term Orientation

Over the past few years the business press has diligently focused on the short-term orientation of most American corporations. Much of the criticism has addressed such problems as preoccupation with quarterly earnings and annual earnings-per-share increases, pinpointing this short-term orientation as one of the primary reasons for America’s decline in world competitiveness. Even when management recognizes this problem, it often remains trapped by traditional approaches. Stockholders, financial analysts, and business journalists scrutinize every quarter’s earnings, looking for information, trends, and news. Since the drive to maximize shot-term profits robs long-term development needs and prevents a company from creating or exploiting opportunities, companies can only create excellence when they replace short-term needs with long-term development and well-being.