Sparrow Ventures
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Sparrow Ventures

The 5 step gardening guide: How to build and cultivate a great startup culture

Picture by: Markus Spiske

What is company culture?

  1. Philosophical level: the intangible atmosphere of a company. So, to say the “spirit” or “soul”.
  2. Practical level: a culture that is formed around common goals, values, expectations, mission, and the physical environment.

Why should you care about company culture?

  1. Performance: Human beings have the urge to belong to a “tribe” and are more motivated to work hard for their tribe. By creating an identity, your team will be more dedicated to reach defined goals together and perform better in the end.
  2. Retention: Employees that are working in an environment with a great atmosphere are more likely to stay at a company.
  3. Scale-up: At the very beginning, your startup only consists of the founder team who makes all the decisions. As your startup grows, your team needs to have some sort of guidelines to pass on, reinforce, and maintain the company culture.

When is the right time to build your company culture?

A gardening guide to building your company culture

1. Analyze your current garden

  • Values/principles: You may not be aware of it but by the first actions you take in your startup, you already started to define your culture! This might be the way you are communicating, the type of methodology you work with or simply the values you have as a person which influences the values of your company.
  • Purpose / Mission: What is the reason for the existence of your company? What problem do you want to solve?

2. Plan your garden

  • Existing culture
  • Strengths and weaknesses
  • Type of business
  1. Core values: Defines who you are and what you believe in — these are non-negotiable, and every employee should live by them. Don’t define too many as you want to have values that are manageable and easy to remember for your employees. You can take a peek at our values here.
  2. Fundamental principles: Defines how everyone should act in their daily work towards business operations — here you integrate key elements for your business into your culture. For example, if your startup requires that you offer excellent customer service, one principle could be “Obsessive customer focus.”

3. Plant your seeds

  1. Communication: Make sure that every employee knows and understands your values and principles. This can be for example through a shared workshop session with everyone in the team to explore and discuss these as well as having visualized posters as a reminder around the office. It’s also crucial that your employees know the mission of your company in order to create a culture of purpose.
  2. Hiring: We have embedded a cultural fit check in the first interview, where we assess the candidate against our values. It is crucial and essential for us as well as also in the interest of the candidate to share a common ground to decide on pursuing the application further. You can learn more about how we are hiring here.
  3. Onboarding: As part of the onboarding process, every new starter has a company culture session together with someone from the management team in the first week. Part of that is a deep-dive introduction to our principles and values so the new colleague is fully on board and ready to live by them in the day-to-day work life.
  4. Performance review: Every team member goes through a self and manager review where they are assessed on each of our values and how they live by it.
  5. Pulse survey: We are frequently touching base with the team about their opinions and how they feel in the form of a pulse survey, where we also ask questions with regards to our culture. That helps us to evaluate/identify flaws in culture and actively solve them. Here’s an extract of our most recent pulse check with the team and what kind of questions we ask:

4. Nurture your garden

  • Create a pleasant work environment: physically but also mentally.
  • Team activities: something that builds connections amongst team members, fosters collaboration, and trust in a non-work setting while having fun together.
  • Lead by example: don’t just preach — be a role model! Live your principles/values in your daily business.
  • Recognize and reward employees that live by values and principles in an exemplary manner.
  • Create an inclusive culture and foster diversity.

5. Look after your garden from time to time

Key takeaways

  1. Culture is crucial to improve performance and increase retention but also to make sure that your startup can keep operating the same way when scaling up. Start reviewing and building your culture now!
  2. Choose a structured approach when defining your culture: take your mission, strengths/weaknesses, and your type of business into consideration.
  3. Execution is everything! Make sure that you implement and nurture your culture properly so that it is not just a nice concept.
  4. Review your culture every now and then to ensure that it fits your startup's current situation.

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Building kick-ass ventures and investing in promising start-ups as part of Migros. Based in Zurich — CH.

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Sparrow Ventures

Building kick-ass ventures and investing in promising start-ups as part of Migros. Based in Zurich — CH.