Striking the Right Balance: Culture, Leadership, and Business Performance in Tech

​Scaling teams while preserving culture

Striking the Right Balance: Culture, Leadership, and Business Performance in Tech

6/11/2024 31 December 2024

​Striking the Right Balance: Culture, Leadership, and Business Performance in Tech

In the fast-paced world of technology, building a strong company culture while maintaining business performance is a delicate balancing act. As tech leaders, it's crucial to understand how these elements interplay and how effective leadership can shape a positive work environment. Drawing insights from Sarat Pediredla, CEO of Hedgehog Lab, we explore strategies to navigate this complex landscape.

Balancing Culture and Business Performance

One of the perennial debates in the business world is whether culture or business performance should come first. Sarat emphasises that both are equally important and should not be seen as mutually exclusive. In the early days of a business, survival and revenue generation are paramount. However, as the company grows, the focus should shift towards building a sustainable culture that supports long-term success.

Key Strategies:

· Set Clear Priorities: Define what is non-negotiable in your culture and ensure it aligns with your business goals.

· Communicate Consistently: Regularly communicate the importance of both culture and performance to your team.

· Measure and Adjust: Use metrics to assess both cultural health and business performance, and be willing to make adjustments as needed.

Sarat explains, "I've been having a debate with somebody recently; should the culture come first or the business come first? I think both of them are important. In the early days of the business, it is all about survival and just building a platform."

The Evolution of Company Culture

Company culture is not a static entity; it evolves as the organisation grows. Hedgehog Lab's journey from a small startup to a global tech consultancy highlights the dynamic nature of culture. Sarat notes that culture is the sum of its people, and as new team members join, the culture inevitably changes.

Key Strategies:

· Document Your Culture Framework: Clearly outline your company's purpose, mission, vision, values, and behaviours. This provides a reference point as the company evolves.

· Embrace Change: Recognise that culture will ebb and flow. Be open to changes and adapt your culture framework as needed.

· Foster Inclusivity: Ensure that new hires are aligned with your cultural values and feel included from day one.

Sarat shares, "I don't see culture as a fixed point in time. Our culture ebbs and flows. There have been years in which our culture has been brilliant, which has resulted in great results, and there have been years in which our culture has been terrible."

The Role of Leadership in Shaping Culture

Leadership plays a pivotal role in establishing and maintaining a positive company culture. Sarat's experiences underscore the importance of leaders being both kind and honest. He differentiates between being "nice" and being "kind," where kindness involves giving honest feedback that helps individuals grow.

Key Strategies:

· Lead by Example: Demonstrate the values and behaviours you want to see in your team.

· Provide Honest Feedback: Be kind by giving constructive feedback that helps team members improve.

· Build Psychological Safety: Create an environment where employees feel safe to express their true selves and share their ideas.

Sarat elaborates, "One of the big mistakes I made in the early part was I equated a great culture with being nice. The evolution I've now had is a great culture is not about being nice, it's about being kind, and it's also about performance."

Actionable Advice for Tech Leaders

· Integrate Culture and Performance: Ensure that your cultural initiatives support your business goals. For example, if innovation is a core value, create an environment that encourages experimentation and risk-taking.

· Communicate Transparently: Regularly update your team on both cultural and business performance metrics. Transparency builds trust and aligns everyone towards common goals.

· Develop Leadership Skills: Invest in leadership development programmes that emphasise both cultural and business acumen. Leaders should be equipped to handle the complexities of balancing these elements.

· Celebrate Successes: Recognise and celebrate both cultural and business achievements. This reinforces the importance of both and motivates your team.

Conclusion

Balancing culture, leadership, and business performance is a continuous journey. By setting clear priorities, embracing change, and leading with kindness and honesty, tech leaders can create a thriving work environment that supports both cultural and business success. As Sarat Pediredla's journey with Hedgehog Lab demonstrates, a strong culture is not just a nice-to-have but a critical component of long-term business success.

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