A Company's Success Is Its Greatest Barrier To More Success

Managing a company’s culture is an extremely nuanced process. There are plenty of brilliant startups that experience massive growth only to fall apart when they get too large.

We came across a great TEDx talk, “First Why, Then Trust,” that explains why this happens. Simon Sinek, author of Start With Why and professor of strategic communications at Columbia University, starts out by explaining that trust is the basis for how communities and organisations grow: “Trust comes from a sense of common values and beliefs. When surrounded by people who believe what we believe, we’re more comfortable to take risks, experiment, explore.”

He gives an example of how we’re more likely to trust a 16-year-old with our kids versus an experienced babysitter whom we don’t know. “Our very survival,” he says, “depends on trusting people who believe what we believe.”

With that in mind, when growing a business, it’s more important to hire people who share similar beliefs and values versus hiring solely for skill. When there’s a disconnect of values, companies fall apart. Sinek calls this moment “the split,” and illustrates it with this graph:

TEDxMaastricht

NOW WATCH: Ideas videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.