What is the Winning Team-Building Formula?

August 4, 2022

In the 1990s, sociologists James Baron and Michael Hannan analyzed the founding cultures of nearly two hundred technology startups in Silicon Valley.

They found that most followed one of three basic models: The star model, the professional model, and the commitment model.

The star model focused on finding and hiring the brightest people.

The professional model focused on building the group around specific skill sets.

The commitment model, on the other hand, focused on developing a group with shared values and strong emotional bonds.

Of these, the commitment model consistently led to the highest rates of success. During the tech bubble burst of 2000, the start-ups that used the commitment model survived at a vastly higher rate than the other two models, and achieved initial public offers three times more often.

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