Startups are often presented as an example. France wants to become the “Startup Nation” to be associated with innovation and success. Why, because they have a strategy based on a strong capacity for anticipation and planning, so as to remain both on the lookout for opportunities and at the same time detect changes in the professional environment. The start-up mindset is speed of decision-making and execution. Their success has nothing to do with chance. Deciphering the levers of their success.
What are the ingredients for startup success?
The startup: a company like no other? Not really, actually. Its main difference lies in its organization, both structurally and in its working methods, because its economic model is based on agility and the capacity for very rapid growth (‘scalable’). Indeed, a startup evolves in an ultra-competitive ecosystem that requires it to constantly renew itself.
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For example, the “test and learn” method, which consists of very regularly testing ideas, and adapting future developments according to the success or failure of this initiative, is one of their fundamentals. This process of regular questioning is very important because it allows them to adapt their economic model, product or service to changes in their ecosystem, and thus always remain at the forefront. As such, a study* shows that companies that have adopted the “Test & Learn” mindset have superior performance. The findings show that those who have used this method achieve 4 times more turnover than others.
Startups also have a particularity: their culture comes directly from their employees. Communication and collaboration are therefore extremely important to maintain cohesion, support and empower people. This is why they pay particular attention to best practices in this area.
It all boils down to an ease of getting and staying in motion that is sometimes lacking in larger companies. This delay in the adoption of new working methods, better suited to current ecosystems, can be explained by both individual and collective causes. It is primarily linked to a corporate culture based on empiricism.
We have inherited a fairly Manichean vision of what a company should be: a vertical hierarchical organization, compartmentalized departments, with top-down communication. If this has proven to be very effective for decades, this is no longer the case. Even if you can’t revolutionize everything with the wave of a magic wand, adopting new approaches in terms of communication and collaboration can clearly contribute to this.
The new digital culture, a key element
The type of communication used is strongly linked to the culture of the organization, and therefore of the employees who make it up. Communicating clearly and precisely about upcoming changes is a good way to counter team resistance to changes in the business. For this, it is necessary to offer a work environment where flexibility, innovation and collaborative spirit predominate also makes the difference.
Best practices that are at the heart of how startups operate and help them retain and attract talent. That said, this agility necessarily goes hand in hand with the adoption of collaboration tools that enable alignment and innovation. A recent McKinsey study reveals that the companies that have emerged as winners from the health crisis are those that have adopted new digital tools the fastest. And that this will change their business model in the long term.
These new tools, a vector of more trust between managers and managed thanks to transparency and openness, also have a direct impact on well-being at work and performance. All of this helps to facilitate and streamline exchanges between team members to solve problems more quickly. Startups have integrated this very well. This is why companies have every interest in drawing inspiration from it. Indeed, better management of the information cycle de facto increases their agility and their capacity for innovation.
Customization of tools and optimal information management
In addition to agility and the ability to quickly transform, the other two key points are information management and the customization of tools.
Let’s start with the second. Historically, organizations have embraced IT tools over time, and Okta’s latest Businesses at work 2022 report shows that on average, each business has to manage 89 applications. All this was done in a logic of solving each problem, by definition unique and specific to each situation, thanks to rigid and standardized tools. It was the golden age of standardization. But this approach is no longer the most effective. Now there are flexible and customizable collaboration tools. Each task being unique, it seems normal to be able to process them with tools that adapt to the characteristics of each organization and the problem encountered. This is a reflection that companies and teams should ask themselves about the best work environment to offer their employees.
Another point where startups are once again showing the way: information management. Designed largely by engineers and developers, they grew up knowing the importance of data management. Startups, from the start, have therefore adopted tools capable of having customizable, easy-to-access and transparent information management. This is what allows them to take full advantage of all the information collected, whether it is documentation, project progress or customer management. Again, this is an example that other companies should follow.
Profits
By capitalizing on all-in-one, flexible workspaces that make the information cycle more fluid, organizations will be able to derive maximum benefit from them. Collaborative environments that are both accessible, highly customizable and minimalist are sources of time savings and productivity. Easy access to information allows you to focus on sharing it with the right person, at the right time and in the right place. The circulation of knowledge and documents thus evolves in step with the development of the company, its projects and the expectations of its users.
Added to this are many benefits on a human level. Indeed, the strengthening of collaboration tends to empower employees to encourage their involvement and the development of their respective talents. Finally, the adoption of these solutions helps startups develop a fulfilling environment that stimulates creativity, commitment and “team spirit”. Significant aspects at a time when talents remain the key to their growth and a subject of tension.
Finally, startups succeed because they equip themselves with scalable solutions involving end users and adaptable to their needs as well as those of the company. The 10th edition of the barometer of the economic and social performance of digital startups in France (EY) teaches us, among other things, that the pandemic has changed remote working practices, the frequency of which has become regular for 33% of startups and personalized for 36 %.
To succeed, startups capitalize on more fluid and transparent communication but also on innovative approaches and work environments benefiting from customizable tools that are perfectly adapted to a changing economic context. Large companies must take inspiration from startups to gain agility and flexibility in order to innovate faster and become more resilient.