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    Home»Exclusive Features»The heart versus the head: Why startups struggle to balance culture and capability
    Exclusive Features

    The heart versus the head: Why startups struggle to balance culture and capability

    In the volatile world of startups, every hire is a bet on the future. Getting the balance wrong can be fatal
    mmBy Radhika Sharma | HRKathaJuly 3, 2025Updated:July 3, 20256 Mins Read11514 Views
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    culture and capability
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    In the frenetic early days of a startup, when whiteboards are covered in ambitious scribbles and coffee cups multiply like rabbits, every hiring decision carries existential weight. Should founders prioritise candidates who bleed the company mission, or those who possess the technical prowess to execute it? This question, seemingly philosophical, becomes brutally practical when survival depends on each team member.

    The dilemma is as old as entrepreneurship itself, yet it has intensified as startups face mounting pressure to scale rapidly whilst maintaining their innovative edge. Get the balance wrong, and companies risk either stagnating in groupthink or fragmenting under the weight of misaligned talent.

    The early-stage imperative

    At the beginning, startups are held together by little more than shared belief and caffeine. Formal processes are absent, roles are fluid, and the business model shifts weekly. In this chaos, cultural alignment becomes the invisible glue that prevents everything from falling apart.

    “What holds things together is trust, shared intent, and a sense of collective ownership.”

    Udbhav Ganjoo, head-HR, global operations, Viatris

    “What holds things together is trust, shared intent, and a sense of collective ownership,” explains Udbhav Ganjoo, head-HR, global operations, Viatris. When teams are small and resources scarce, friction between personalities can be fatal.

    Varadarajan S (Raja), former CHRO, Vistara Airlines, reinforces this view: “Early-stage startups often emphasise culture fit to foster cohesion, agility, and shared purpose. When teams are small, alignment on values, work ethic, and vision can be the glue that holds everything together.”

    “Early-stage startups often emphasise culture fit to foster cohesion, agility, and shared purpose. When teams are small, alignment on values, work ethic, and vision can be the glue that holds everything together.”

    Varadarajan S (Raja), former CHRO, Vistara Airlines

    This approach makes intuitive sense. Early employees often work beyond defined roles, collaborate intimately, and weather uncertainty together. Cultural misfits can poison the well quickly when there’s nowhere to hide.

    Yet this strategy carries hidden dangers. As Raja observes: “The homogeneity may stifle innovation and lead to groupthink.” One founder captured this tension perfectly: “In the early days, you need people who bleed the mission. But as you scale, you need those who challenge it.”

    The scale-up shift

    The turning point arrives when startups find product-market fit and secure funding. Suddenly, the all-hands-on-deck mentality that once served them becomes a liability. Investors demand competency and predictability. Customers expect consistency. The luxury of learning on the job evaporates.

    “With the pace of change in technology, regulations, and customer expectations, teams must sharpen their skills continuously. The knowledge and skill to tackle and handle that—that’s a continuous journey.”

    Atul Mathur, EVP-HR & head-L&D, Aditya Birla Capital

    “Speed and excellence in execution become critical,” notes Ganjoo. “Investors want competency and predictability. Customers want consistency and teams need to deliver.”

    This is when capability begins to eclipse culture fit in hiring priorities. Domain experts who have scaled businesses and solved complex problems become invaluable. The best talent can fill capability gaps and accelerate growth—but if they’re misaligned with company values, they risk disrupting team dynamics or diluting the culture.

    Atul Mathur, EVP-HR & head-L&D, Aditya Birla Capital, frames it as a continuous learning curve: “With the pace of change in technology, regulations, and customer expectations, teams must sharpen their skills continuously. The knowledge and skill to tackle and handle that—that’s a continuous journey.”

    The perils of extremes

    Startups that lean too far in either direction often stumble spectacularly. Companies that stick rigidly to culture fit risk becoming echo chambers where innovation stagnates. The refrain “that’s not how we do things here” becomes a wall that keeps out progress.

    Conversely, over-prioritising capability without assessing alignment can lead to cultural unravelling. Even high-performing talent can be destructive if they’re fundamentally misaligned with the startup’s ethos. Ganjoo has observed many startups that scale rapidly on the back of capability, only to face silent attrition, internal conflict, or brand dilution when they realise the soul of the company didn’t scale with the skill.

    Raja captures this balancing act: “There is no one-size-fits-all answer, but the most successful startups blend both: ‘cultural alignment for foundation, capability for acceleration.’ Culture is the soul, capability is the engine. You need both to go the distance.”

    Finding the equilibrium

    What separates successful startups from the rest is their ability to develop dynamic hiring strategies that evolve with their growth stage without losing sight of their core identity.

    Raja recalls his own experience: “When we were hiring in the multiple startups I was part of, we used to hire for attitude—which was more difficult to train—and were confident that we could train for skills. We used to hire for ‘culture add,’ not just fit.”

    This approach requires discipline. First, define the non-negotiables—those core values that are foundational and uncompromising. Second, assess for adaptability: can the candidate operate in ambiguity whilst respecting the company’s ethos? Third, regularly revisit hiring criteria as the startup evolves.

    Capability must also be defined clearly—not just as technical expertise but as the ability to deliver specific business outcomes. Structured interviews, real-life simulations, and practical problem-solving exercises help evaluate true capability beyond impressive CVs.

    Mathur emphasises the importance of post-hiring integration: “Capability mismatches often appear during onboarding, not recruitment.” Immersive onboarding rituals, pairing newcomers with cultural stewards, and providing context beyond mere task lists are essential for successful integration.

    The path forward

    Perhaps the most crucial insight is that startups should not hire for the company they are today, but for the company they are becoming. As Ganjoo puts it: “Don’t just hire for the company you are. Hire for the company you are becoming.”

    This mindset demands courage—to evolve hiring practices, to rethink what “fit” really means, and to create a dynamic, inclusive culture that can weather the turbulence of growth. It means hiring people who believe in the cause and can power it forward—not just with skills, but with belief, resilience, and the ability to collaborate.

    The startup journey may be volatile, but with the right mix of people—those who align and those who elevate—the odds of building a sustainable, impactful company improve significantly. The answer isn’t choosing between heart and head, but finding the sweet spot where both can thrive.

    Culture culture and capability diversity Employee Employee Benefits Employee Engagement employer Employment Engagement Human Resources LEAD Productivity Recruitment Skill Development Startup Culture Training Workforce Workplace
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    Radhika Sharma | HRKatha

    Radhika is a commerce graduate with a curious mind and an adaptable spirit. A quick learner by nature, she thrives on exploring new ideas and embracing challenges. When she’s not chasing the latest news or trends, you’ll likely find her lost in a book or discovering a new favourite at her go-to Asian eatery. She also have a soft spot for Asian dramas—they’re her perfect escape after a busy day.

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