Intro
The question of whether your company should be organized like a family or a professional sports team is not a new one. Recently, the trend seems to be leaning away from the family model and towards the sports team approach. Both have their pros and cons, and it’s worth exploring each in detail.
The Family Model
When we think of a family, we often associate it with trust, warmth, and a sense of belonging. In a company, the family model can foster a friendly, welcoming environment, characterized by long-term thinking, minimal pressure, and a focus on collective success over individual achievements.
However, there are downsides to this model too. A family-like culture may inadvertently tolerate underperformance, with underperformers remaining in teams indefinitely simply because they are part of the ‘family’. High standards can be challenging to maintain, both in hiring and within teams, as a family is not inherently about high performance. Layoffs can be particularly tough, perceived as a betrayal akin to being exiled from a family. Furthermore, setting challenging objectives and managing performance may prove difficult, as this level of candor is not typically expected within a family setup. Layoffs can be perceived as betrayal.
The Pro Sports Team Model
In contrast, a company modeled after a professional sports team is all about high standards and superior performance. Everyone in the company, including new hires, expects to be judged by these criteria. This model may allow you to achieve the same outcomes with fewer people, and regular performance-based layoffs are anticipated.
However, the sports team model is not without its drawbacks. The constant fear of being “cut from the team” can cause anxiety, which can stifle creativity. Attracting high-performing talent may require higher pay, potentially leading to a soulless culture marked by high turnover rates and short-term thinking. This environment may encourage employees to prioritize their own success over the team’s or the company’s.
Some examples
Netflix
Netflix models itself after a professional sports team rather than a family. They emphasize the importance of each team member’s performance and development, with managers ensuring that everyone performs well in their role and works effectively with others.
37 Signals
David Heinemeier Hansson of 37Signals argues that you can’t scorn the use of “we’re a family” and still expect colleagues who can’t keep up to be spared. He suggests that if you want a high-performing team, you have to make some tough decisions.
sevDesk
sevDesk is a startup in Germany. They market themselves as the sevFamily. I experienced this firsthand. It creates a very creative and warm atmosphere. People are there for the long run. Creativity thrives.
Striking the Balance
In my opinion, it’s possible to combine the best elements of both models. Long-term thinking is crucial, and no company can afford the disruption of frequently changing team members. Therefore, it’s essential to build an open, caring organization that feels like a family, a team of potential friends, and a fun place to work.
Simultaneously, the company should communicate the importance of performance and that underperformance is not acceptance in any way. It’s this magical combination of clear performance expectations and long-term thinking that strikes the sweet spot. Balancing these two aspects can create a company culture that is both nurturing and performance-oriented, fostering an environment where employees feel valued and motivated to give their best.
More
- David’s take: https://world.hey.com/dhh/you-re-not-guaranteed-a-spot-on-the-team-95080248
- Netflix’ culture: https://jobs.netflix.com/culture
- SevDesk’s sevFamily: https://sevdesk.de/team/
