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Building Startup Teams: The Challenge for Entrepreneurs

May 12, 2023

The Building Startup Teams: The Challenge for Entrepreneurs


Leadership is not a solo performance, but a partnership between leaders and their followers. No matter how visionary, charismatic, or competent a leader is, he or she will not get very far without followers willing to work hard and enthusiastically to implement the vision and create a great, even world-changing organization. The most important way this works in today’s world, in business as well as in almost every public sphere, is through teams. 


Why Teams Are Important


  • According to an internal Google study (Project Aristotle), “The team is the molecular unit where real production happens, where innovative ideas are conceived and tested, and where employees experience most of their work.” 
  • Skill in forming and leading teams is essential in leading any organization. It demands all of the competencies of an effective leader. 
  • Teams are more than just a group of individual contributors working together. Teams utilize the experience, background, and expertise of a diverse group of people, each bringing his or her own contribution to the table.
  • Individuals possess varied talents and skills, different strengths and weaknesses. What one person can’t do well, somebody else may excel at. Bringing them together on a team helps to augment the skills and negate the weaknesses – as the saying goes, “the whole is greater than the sum of the parts,” or as leadership guru Ken Blanchard said, “None of us is as smart as all of us”.
  • Teams serve the leader’s decision-making process by putting forward multiple points of view, helping to avoid bias based on narrow or limited vision.
  • Effective teams have a shared purpose, interdependency, and skill in communicating and working together. This creates a shared identity and spirit of cooperation and collaboration that allows the team to work more effectively together.
  • One of the benefits of teamwork is that it divides up the tasks to be done and increases the chance of success. On a very basic level, a team divides up the tasks and responsibilities needed to get something accomplished, whether short-term problem-solving or a large-scale, long-term project. Most projects today are too complex for one individual to handle. If the workload is shared intelligently, allocating tasks according to people’s strengths, the work gets done more efficiently and effectively. That translates to higher productivity.
  • Working collaboratively in a group people can give and receive feedback and support to each other. 
    Collaboration can help solve difficult problems. Brainstorming in a team based in trust provides a perfect opportunity to surface ideas and bring up creative ways of doing things.
  • Teams unify the energy and intelligence of individuals behind a common goal.


The Critical Importance of Teamwork for Startups


Teamwork is important for any organization, but it is especially critical for a startup. Our research shows that as companies scale, different elements of leadership differentiate great leaders from the rest of the pack. Looking at all companies – small, medium and large – as one group, the qualities and behaviors of the Inspirational Role Model form the most important differentiator characterizing great leaders. However, for early stage companies Facilitating Teamwork stands out as the key to great leadership. 


Why is this the case? In a small, scaling company the leader is often involved in everything. If this continues, the leader ends up creating a self-limiting organization that is too leader centric. He or she is involved in the details of too many things, tries to control too many decisions, and becomes a bottleneck. Such a leader has not figured out how to gain leverage by working through others. Micromanagement could become an issue. This style can dramatically impede the organization’s ability to scale.


Those leaders who learn to work through others by building high-performing teams stand out. They have learned to share leadership with strong function heads who balance their weaknesses and bring domain expertise to important decisions. They have learned that the best decisions often emerge from intense and productive dialogue that utilizes the perspectives and information provided by a diverse team of empowered experts who balance any biases the leader might have. 


This type of leader gets the most out of the team by utilizing a motivating style that makes team members feel like partners with a shared sense of ownership in the team’s decisions and actions, rather than depending on fear and intimidation to get compliance and conformity. They have learned to gel a group of individuals into a cohesive team focused on a shared direction and acting in a coordinated and collaborative manner. For these and many other reasons that will become apparent, startup leaders stand out who have the ability and know-how to get the most out their team.


The Challenge for Entrepreneurs


The entrepreneurial leader needs a genuine and strong belief that the synergy of teamwork is powerful and real. They must make the transition to a different view of their role, as the facilitator of teamwork, who greases the rails to get the most out of the team. This attitude can’t be faked. They must really believe that better-quality decisions will result from utilizing the diverse views and expertise of team members – that together we can solve problems more effectively than any one of us alone. 


This is especially important knowledge for entrepreneurs because, as our research suggests, many entrepreneurs, particularly tech entrepreneurs, are naturally independent loners who have strong needs for autonomy. Too often, they “don’t play well with others.” They tend to be non-conformists who resist restrictions on their freedom. Taking the time to get buy-in to their ideas and dealing with messy, emotional resistance doesn’t seem worth the effort. Their natural tendency is to go off to the mountain and talk to God and come down with the tablets. Making decisions by themselves is their default mode. They can be proudly – and stubbornly – self-reliant.


When they become leaders, their tendency is to trust their own judgment first and foremost. They aim to persuade people rather than engaging in open dialogue and getting all the facts and perspectives on the table. They try to control meetings and decisions, engage in micromanagement, and utilize a hub-and-spoke style of managing subordinates. Their long-standing pattern of independence keeps them from getting the benefits of teamwork and synergistic decision-making.


What they’re doing is trying to manage the team as a group of individual contributors whom they can control more easily. This translates into holding meetings one-on-one with Individuals rather than the whole team, giving individuals goals and following up with them privately. Secretly, they don’t really like group meetings and have little tolerance for open disagreement with their ideas. After all, in the past, they’ve done their best, most creative and productive work by themselves. They are skeptical whether group problem-solving and decision-making or strategic planning are going to add value.

 

Many tech entrepreneurs are very smart, but their IQs are higher than their EQs. In other words, their Emotional Intelligence and Social Intelligence need to be developed. They can rely on their intellect, see patterns, learn quickly and develop penetrating insights into problems, provided that the problems don’t require deep insight into people’s motivations and feelings or reading their impact on others. When dealing with team members they may lack empathy, tact, courtesy or sensitivity. They often damage relationships by trying to manage the organization as if it were a machine. 


Just because they may be able to persuade investors or paint an inspiring vision to promote the interests of the company, doesn’t mean they have a nuanced understanding of how people work. In general, they are task and results-oriented rather than people-oriented and are often quite unaware of the individual personality differences and group dynamics that impact a team. They get so focused on what they are trying to accomplish that they don’t see how their behavior may hurt feelings or intimidate people. In short: Social astuteness is not their strong suit. 

 

Both experience and research tell us that this style can make it difficult to create an effective, smooth-running team. It’s not enough to have a common goal. It also takes patience, perseverance, and attention to social dynamics. Because independent-minded entrepreneurs easily get frustrated with group decision-making and the need to work closely and build consensus with team members, they can become a roadblock to the creativity and effective decision making that teamwork can foster. 


A related challenge for entrepreneurs – as it is for all leaders – is the need to balance empathy, trust, empowerment of team members and a generally supportive approach, with challenging team members and demanding that they do their best work and produce results. As the leader, you need to honor the imperative to deliver results while at the same time sustaining the awareness that you need to work through your people, so it’s vital to build and maintain good relationships. 

 

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Let's be brutally honest. In the cutthroat world of modern business, we obsess over metrics, strategies, and market share. We chase innovation, efficiency, and the next big disruption. But what if I told you that the single most powerful, yet often overlooked, asset in your leadership arsenal isn't a new technology or a groundbreaking business model, but something far more fundamental? It's trust . Research reveals that trust isn't just a "nice-to-have" soft skill; it's the bedrock of every high-performing team, the fuel for innovation, and the hidden engine of organizational success. Ignore it at your peril, because the cost of low trust isn't just a dip in morale—it's a direct hit to your bottom line, your talent pipeline, and your legacy as a leader. The Uncomfortable Truth: Trust is Your Most Valuable Capital Think of trust not as an abstract concept, but as tangible capital for your organization. It’s the "first step of genuine and effective leadership". Without it, people simply won't follow you. This isn't hyperbole; it's a stark reality backed by compelling data. Companies with high trust factors report staggering benefits: 74% less stress, 13% fewer sick days, and a remarkable 40% less burnout among employees compared to their low-trust counterparts. This translates directly into reduced operational costs and a healthier, more engaged workforce. Employees in high-trust organizations are also 50% more likely to stay with their employer long-term, drastically cutting turnover costs and retaining invaluable talent. Beyond retention, trust ignites collaboration. When your team trusts each other and you, they share ideas freely, seek help without hesitation, and work cohesively towards shared goals. This isn't just about being "nice"; it leads to more innovative solutions, superior problem-solving, and a cohesive, high-performing workforce. Google's own Project Aristotle, a deep dive into team effectiveness, concluded that high-performing teams are simply impossible without trust. It is the very bedrock for open communication and innovation. A high-trust environment also minimizes micromanagement, granting employees the autonomy and confidence to make decisions and focus on meaningful work, boosting productivity and efficiency. And the ripple effect extends outward: employees who feel trusted and respected internally are far more likely to deliver exceptional customer service, enhancing brand loyalty and driving business growth. So, if trust is so powerful, why do so many leaders struggle with it? The Three Non-Negotiable Pillars: Where Leaders Often Stumble Research has identified three fundamental pillars of trustworthiness: Ability, Integrity, and Benevolence . Here's the critical, often misunderstood, part: trustworthiness is a product of these three, not a sum. This means if you score a zero in any one of these areas, your overall trustworthiness plummets to zero, regardless of how stellar you are in the others. Let that sink in. You can be a brilliant strategist (high Ability), but if your team perceives you as dishonest (zero Integrity), your trust account is empty. You can be the most ethical person in the room (high Integrity), but if you consistently fail to deliver on promises (zero Ability), trust evaporates. And perhaps the most insidious blind spot for many leaders: you can be competent and honest, but if you lack genuine care and kindness for your team (zero Benevolence), you will not be trusted. Let's break them down: Ability: This is your professional competence – your skills, knowledge, and, most importantly, your consistent delivery on promises. As one CEO put it, "Trustworthiness is about doing what it says on the tin". If you say you'll do something, do it. Period. Integrity: This is "walking the talk." It's about being reliable in your behaviors, consistently upholding your values, and demonstrating honesty, openness, and fairness. Even a minor ethical slip from years ago can permanently damage a leader's perceived integrity. Benevolence: This is the genuine concern for the well-being of others – care, generosity, and kindness. The most potent destroyer of trust is the perception that you're acting solely in your own self-interest. Leaders who publicly humiliate or criticize team members, even if they are otherwise capable, will struggle to build trust due to a glaring lack of benevolence. It’s time to "re-humanize the workplace". The Blueprint for Building Unshakeable Trust Building trust is a deliberate, ongoing process. It requires conscious effort and consistent action. Here's how leaders who truly get it cultivate high-trust environments: Be Authentically Transparent and Accountable: Authenticity is the very foundation of trust. Be open about your intentions, share insights into decision-making, and, crucially, admit your mistakes. When you own your fallibilities, you create a psychologically safe environment where others feel safe to do the same. This vulnerability, counter-intuitively, builds immense trust. Practice Radical Empathy and Active Listening: Empathetic leaders genuinely value their employees' needs and desires. Respect is the "cornerstone of trust". This means not just hearing, but actively listening – giving full attention, asking clarifying questions, paraphrasing to confirm understanding, and empathizing with their feelings. It signals genuine value for their input and builds a deeper connection. Be a Beacon of Consistency and Reliability: Consistency is paramount, especially when paired with empathy. Your actions must consistently match your words. Reliability is, in fact, the top trust-building factor identified by business leaders, with 90% considering it important. When your team knows what to expect from you, uncertainty diminishes, and trust flourishes. Cultivate Mindfulness and Self-Awareness: This isn't just a wellness trend; it's a leadership imperative. Mindfulness enhances your cognitive capacity, flexibility, and ability to "re-perceive" situations objectively. It improves self-awareness and self-regulation, ensuring your actions align with your values, not just automatic reactions. A mindful leader is better equipped to exhibit all the behaviors necessary for building trust. Champion Fairness and Resolve Conflict: Leaders who fairly distribute rewards, maintain transparency, and enforce unbiased policies build trust. Addressing fears and resolving conflicts quickly and fairly strengthens team trust, enhancing collaboration and engagement. The Silent Sabotage: How Leaders Accidentally Destroy Trust Now for the uncomfortable part. Many leaders, often with good intentions, inadvertently erode trust through subtle behaviors that chip away at the foundation. These aren't always malicious acts, but rather blind spots that have devastating consequences: Inconsistent Actions and Unkept Commitments: You say one thing but do another. You make promises, even small ones, and fail to follow through. This gap between words and deeds is a trust killer, making teams feel unheard and disengaged. Lack of Transparency and Disengagement: You sideline key stakeholders in decisions, offer inconsistent messaging, or simply become physically or emotionally unavailable. This signals a profound lack of investment and erodes confidence, often without you even realizing the impact. Micromanagement and Disrespect for Time: You constantly hover, dictate every detail, or retract delegated tasks. This screams, "I don't trust you to do your job," leading to a reciprocal loss of trust. Similarly, frequent reschedules, unreturned messages, or unnecessary meetings signal that your team's time isn't valued, breeding resentment. Unethical Behavior and Compromising Values: Even a seemingly minor ethical lapse can permanently damage your integrity. When you compromise the organization's core values, your team notices, and their trust in your leadership crumbles. Ignoring Performance Issues: When a team member isn't pulling their weight or is negatively impacting the team, and you "look the other way," it demoralizes everyone else. It signals a lack of fairness and accountability, eroding trust in your leadership. Displaying Superiority or Losing Composure: Acting superior, undervaluing team perspectives, or losing your temper in communications makes employees feel disrespected and unheard. The "One-Size-Fits-All" Fallacy: Applying a uniform leadership style to diverse, multicultural teams can be perceived as autocratic and lead to a significant loss of trust, as it ignores crucial cultural nuances. Expecting Others to Earn Your Trust Without Reciprocating: You demand trust from your team, but you don't extend it first. Healthy relationships, including professional ones, are never one-sided. The Passive "My Door Is Always Open": Simply saying "my door is always open" is not enough. If you don't actively seek input, schedule check-ins, and create safe spaces for dialogue, many voices will remain unheard, and trust will not grow. The Devastating Fallout: What Happens When Trust Dies The consequences of low trust are not theoretical; they are devastatingly real: Disengagement and High Turnover: Energy and enthusiasm drain away. Individuals feel undervalued, leading to high turnover rates, decreased productivity, and widespread dissatisfaction. Friction and Unresolved Conflict: Without trust, conflicts escalate. Teams avoid addressing issues, engage in "polite nodding" without genuine agreement, or resort to passive-aggressive behaviors and gossip, creating a toxic atmosphere. Stifled Innovation: The fear of rejection or ridicule suppresses creativity. Teams hesitate to propose new ideas or challenge the status quo, leaving the organization stagnant and vulnerable to competitors. Lack of Feedback and Misunderstandings: Team members are reluctant to give or seek feedback, fearing judgment or repercussions. This means valuable insights go unshared, and opportunities for growth are missed. Negative assumptions about intentions lead to strained relationships and a focus on self-protection over collaboration. Low Confidence and Indecision: Individuals second-guess their abilities, doubt decisions, and hesitate to take risks, further stifling creativity and progress. Your Call to Action: Reclaim Your Superpower Trust is not built overnight, nor is it maintained passively. It requires consistent, deliberate effort. If trust has been eroded, it can be rebuilt, but it demands honesty, humility, and sustained action. Acknowledge your missteps, own them, and commit to consistent behaviors that prove your reliability over time. Re-engage with your team, prioritize benevolence, and shift from demanding trust to actively earning it. In today's complex and rapidly changing world, trust is not just a competitive advantage; it's a prerequisite for survival. Leaders who master the art and science of building and sustaining trust will not only foster more engaged, innovative, and productive teams but will also forge a legacy of true, impactful leadership.  Are you ready to unlock your ultimate leadership superpower? The choice, and the action, is yours.
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