Many small, growing companies find that, even though a new hire might have all the right technical skills and experience, he or she doesn’t perform as well as expected, and may even cause confusion, mistakes, and delays in what used to be a smooth-running operation. Adding employees, especially in core functions like product development, is often the first time a small company really notices "the culture issue." The underlying and largely unspoken assumptions that guide everyday operations and relationships are the tip of an iceberg that can threaten new employee contributions and, ultimately, your company’s success.

A few words about "the culture issue"at small companies:

Every organization has a culture. It may be subtle and disjointed; it may be strong and cohesive. An organization’s culture can be observed in the way people behave toward each other and how they approach their work. For example, how does the group handle conflict? Whose word is readily believed, on the one hand, and, on the other hand, who has to painstakingly prove his case? Are "points" given for neatness? 

When a small group, such as a start-up team, has worked closely – even intensely -- together for a period, the members’ shared assumptions about their work and environment are probably unarticulated and 

Typically, the small group’s capabilities can stretch as the company adds new customers and even new products. But at some point, more people are needed. Usually, new members are added to the group one at a time, and the company looks for people with the right job skills to fill the most 

All too often, the new member, even when equipped with all the right skills and motivations, can’t quite get the hang of things. For example: 

• She may be surprised by the loud controversy that takes place at a staff meeting and expect that the participants are enemies who will sabotage each other’s work … when in fact the shouting is a signal of true friendship at this company.

• He might not understand that an informal nod is all that is needed for him to get to work on a new design and may waste a lot of time waiting for "official" approval.

• She might not know which suppliers work on personal terms with the founders and which are more at arm’s length … or even that there are two kinds.

Highlights: How to minimize the problem.

First, the company’s leaders (which could in fact be the whole start-up team) must become more deliberately conscious of its organizational culture. They need to identify what kinds of behavior and personalities work best at the company; and beyond that, they need to delve into why this is so. 

Second, company hiring practices must be designed that will help interviewers identify new employees with a good cultural fit as well as the required technical skills. The best interviews will include questions that ask potential employees to describe critical incidents in their work lives, which will reveal crucial aspects of their motivational profile, communication and learning styles, tolerance for uncertainly, etc. 

Socialization is just as important as effective hiring practices. In small companies, socialization is likely to be informal, intermittent, and individualistic. One or more "veterans" can help the new employee through the first three to six months, and this may involve some frank discussions of values and priorities as well as simply modeling every day what is effective behavior at the company. Finally, as the new employee becomes a full member of the organization, his or her feedback and reflections about the new-hire and socialization experience will be very valuable to help the company get better at growing.

This article was published in Silver Nuggets - The R&D Management Newsletter.  To subscribe to future issues, click here and insert the ID "nuggets" in the address.