Cult Culture as Competitive Advantage

There are few things as powerful as genuine culture in a company. In the venture business we are in, we thrill vicariously in the joy and passion of young companies who are trying to change the world. Start-ups have one great advantage in that they have a better shot at creating and cultivating the magical culture that most large businesses have lost along the way. Having that culture is a little like youth -- you know while you still have it, but you are not quite sure of the exact moment you lose it.

Scaling culture -- or, perhaps more accurately, preserving a special culture -- is tough for "successful" big businesses. This is because at some point in a firm's evolution the importance of big usually overtakes the importance of quality, values, and founding principles. Most large businesses also fall prey to over-processing, over-codifying, and over-PowerPointing their story, strategy, and yes, culture, to employees. Herein lies the difference between real employee cult cultures such as lululemon and Apple, versus, say, any of the companies who went to the bailout coffers. Go to the two retail stores mentioned and you just feel that the people who work there are happier. Ask them why they are satisfied and they say they believe in the company's mission, love the products, and the company understands their professional goals. There is a thin line between cult and culture as competitive advantage. The businesses that can create a cultural movement among their employees are few and far between, but those who do have an incredible advantage that they should recognize and do everything possible to celebrate and preserve.

This article first appeared on Harvard Business Publishing on August 17, 2009.

Follow Anthony Tjan on Twitter: www.twitter.com/anthonytjan

Comments

[RandVictims]

I've got a cult for you; - Rent "Fight Club"

That's where Americans should be leaning for inspiration.

[mommadona]

Uh....Enro­n.

I rest my case.

No, wait.....

Xe....form­erly known as Blackwater.

Now, I rest my case.

[drjay79]

The key word here is cult. Control over others to get them do do what you want. Scary stuff.

[Sinick]

The real question is whether cult companies can afford health insurance for their employees and K-street lobbyists while simultaneously watching the SBA hand out lucrative government contracts to the Fortune 500.