After publishing my previous article on DeepSeek, I received some great questions on how start-ups maintain these traits as they grow. Or if these behaviours inevitably slip away as you scale the business?
These are questions I think about a lot – not just as an observer of great companies, but as a founder myself, building Fortify. As Fortify grows, I want to ensure we retain the agility, performance, and innovation that define us today. So, this article is both a response to those questions and a reflection on how I aim to scale Fortify without losing that start-up magic.
Can companies grow big but continue to act small?
Interestingly, from what I observe, all companies tend to struggle to sustain a DeepSeek-style culture at scale.
There are however parallels I see in other industries. Some hedge funds – such as DE Shaw, Jane Street, and Citadel – maintain high-performance cultures through a collection of small trading desks. Each desk (typically 20-40 people) operates with its own P&L but shares common infrastructure (connectivity, data) with the wider organisation.
Given the Revolut CEO’s background (ex-trader), I believe it is no accident that Revolut also uses small teams to build new banking products. Cells of 10-person teams design, build, and launch products on the Revolut platform. If successful, these teams grow and multiply into more small teams of 10-20 people.
Similarly, top strategy consulting firms like BCG, Bain, and McKinsey look like one company externally but internally they operate in much smaller units. They share infrastructure: marketing, hiring pipelines, new grads – and these feed specialised units made up of partners and associate partners that serve a few clients and industries. The danger of this model is chasing revenue growth over maintaining profitability, which customers can sometimes perceive as a loss of quality
In the technology space, Palantir is another interesting example. It prides itself on having ‘the resources of a big tech company and the culture of a scrappy startup’. Most of their revenue is delivered by small teams of forward deployed engineers with the backing of shared infrastructure from core/platform engineering teams.
This organisational pattern of entrepreneurial teams with shared infrastructure is not exclusively a Western or just a technology company phenomenon. There is a 2023 HBR article highlighting exactly this practice in Chinese consumer good companies like Haier.
Why does culture degrade at scale?
Several factors contribute to the decline of strong, performance-driven cultures as companies grow:
Lack of competitive pressure – Many companies do not operate in fiercely competitive industries with high stakes. When growth stalls, motivation wanes. In hedge funds, stagnation is not an option because traders’ personal earnings depend on profits. Without clear financial incentives, larger organisations struggle to maintain high performance.
With this context, it is particularly interesting to me that Deepseek just open sourced some of its key technology components that make their serving costs so low. While it rightly brings credit to the great engineering work, it will also add to the competitive pressure on the internal teams to improve their efficiency lead even more as others copy their advances.
When success leads to complacency – Companies can become so large and so profitable that inefficiencies creep in. They can sustain layers of bureaucracy and inefficiencies without immediate consequences, leading to decay. This phenomenon is well-documented in Barbarians at the Gate, which I highly recommend reading.
Not enough transparency in profitability – In some organisations, it becomes difficult to pinpoint exactly where profits are coming from. Some business units drive massive value while others drain resources, yet the organisation may lack the ability – or willingness – to address underperforming areas. In contrast, cellular structures make it easier to track performance and act accordingly.
What are the conditions for sustaining culture at scale?
Here are some ways that companies like Deepseek and Revolut – and Fortify – can maintain their culture as they grow:
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Adopt a cellular structure – Keep teams small (<20 people) with shared infrastructure but independent execution.
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Tie performance to rewards – Like hedge funds, ensure that individuals and teams benefit directly from their contributions.
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Keep the hustle alive – Operate in an environment where performance is necessary for survival, avoiding the stagnation that can emerge in larger more established businesses.
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Maintain clear profitability metrics – Have clear visibility into which teams drive value, and which do not so leaders can make informed decisions.
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Hire for cultural fit – Prioritise candidates who demonstrate strong work ethic, passion for the mission, ability to collaborate effectively, and a desire for action. Ensuring new hires align with core values helps sustain a high-performance culture over time.
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Constantly reinforce culture – Culture is what happens when no one is looking. Being unapologetically clear about what we stand for and making the same choices consistently is key to maintaining culture.
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Strong relationships with customers – Giving customers a real say in shaping a product makes them feel invested, turning them from passive users into active contributors. When people see their input reflected in the final product, it creates a personal connection and builds lasting loyalty
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Act small – Fast product cycles, real-time customer feedback, and giving employees the freedom to challenge and refine ideas as they evolve from concept to launch all contribute to a culture of agility and innovation.
No organisation can scale indefinitely without trade-offs, but those that understand and manage these challenges thoughtfully will be far better positioned to retain the qualities that made them successful in the first place. This is the challenge – and the opportunity.
I’d love to know your thoughts! What strategies have you found most effective in maintaining a strong company culture as your business grows? Or what have you seen working well elsewhere?
More reading:
On Revolut, from 20:23 onwards
https://youtu.be/IXubBqd8uXs?si=c81JFPRl3HZQOLCp
How Chinese Companies are reinventing management: https://hbr.org/2023/03/how-chinese-companies-are-reinventing-management
Palantir - https://nabeelqu.substack.com/p/reflections-on-palantir
Babarians at the Gate - https://www.amazon.co.uk/Barbarians-At-Gate-Bryan-Burrough/dp/0099545837