{"id":493519,"date":"2025-01-06T15:53:20","date_gmt":"2025-01-06T10:23:20","guid":{"rendered":"https:\/\/inc42.com\/?p=493519"},"modified":"2025-01-06T16:03:56","modified_gmt":"2025-01-06T10:33:56","slug":"how-to-build-a-high-performing-cxo-team-and-supportive-leadership-for-startup-growth","status":"publish","type":"post","link":"https:\/\/inc42.com\/features\/how-to-build-a-high-performing-cxo-team-and-supportive-leadership-for-startup-growth\/","title":{"rendered":"How To Build A High-Performing CXO Team And Supportive Leadership For Startup Growth"},"content":{"rendered":"

AirBnB spent five months <\/span>interviewing<\/span><\/a> their first employee before hiring someone; in their first year, they only hired two people.<\/span><\/p>\n

Hiring leadership talent has always been a challenging task, but it has become even more difficult in recent times. Recruiting exceptional leadership talent in the dynamic and fast-paced world of startups requires more than filling a role\u2014it demands identifying individuals capable of driving innovation, fostering resilience, and shaping the organisation\u2019s trajectory. This shift underscores the need to adapt and reposition strategies accordingly.<\/span><\/p>\n

Think of Covid-19. No business, large or small, was immune to its initial shockwaves or long-term socio-economic impact. But what happened next was far from expected. After the FOMO-driven <\/span>investment tsunami<\/span><\/a> and the Great Resignation of 2021 came a harsh funding winter.<\/span><\/p>\n

But there is a silver lining. Indian startups are increasingly embracing tech enablement, leveraging advanced software to enhance business experiences, streamline hiring, and optimise customer interactions. This deeper integration of technology reflects a shift toward sustainable growth, a necessity after grappling with funding and scaling challenges. Today, startups are focusing on meaningful progress throughout their business life cycles, from early-stage growth to large-scale operations. They are seeking C-suite-ready leaders equipped to navigate the unique complexities of each phase, driving innovation and resilience while steering the organisation toward long-term success.\u00a0<\/span><\/p>\n

Undoubtedly, innovation and disruption cannot take the backseat in the startup sector. But this time, entrepreneurs are keen to focus on what matters in the real world instead of exploring the glittery opportunities, prioritising sustainability over growth at all costs.\u00a0<\/span><\/p>\n

In essence, startups are becoming more cautious about over-hiring or overspending. They are also less likely to underdeliver or experiment excessively unless founders are confident that their strategies will lead to profitable business outcomes. This shift in approach pressures startups to hire the right talent while balancing short-term scaling and risk-taking with long-term value creation, emphasising the need for a strategic equilibrium between growth and calculated risk.<\/span><\/p>\n

Recently,\u00a0 leadership hiring for Indian startups has seen a \u2018notable increase\u2019. As per an Accord India <\/span>report<\/span><\/a>, C-suite recruitment grew by 15% Y-o-Y in the first half of 2024. The report also highlights <\/span>that sales and marketing has become the largest hiring function, with startup heads focusing on expanding their customer base and enhancing branding as competition intensifies.\u00a0<\/span><\/p>\n

Again, the<\/span> rise of startup IPOs in 2024<\/span><\/a> makes them attractive workplaces. It signals that startups are not scrappy newcomers but serious public market players seeking experienced leaders to guide them through complex business challenges, particularly from an IPO readiness standpoint. Being part of an IPO is a significant milestone for any leader, as it allows them to say, “I helped take this company public.” Having IPO and listing experience is a valuable achievement that enhances a leader\u2019s career portfolio.<\/span>\u00a0\u00a0<\/span><\/p>\n

According to Anshuman Das, cofounder and CEO of executive search and talent advisory firms Careernet,\u00a0 Longhouse Consulting, and HirePro, <\/span>the demand for C-suite executives has increased in recent years due to the evolving needs of startups and their expansion strategies. <\/span><\/p>\n

\u201cIn tech-enabled or tech-first businesses, where the technology stack is the backbone of operations, the role of Chief Technology Officer (CTO) becomes pivotal in steering the company\u2019s growth and innovation<\/span>,\u201d he said.\u00a0<\/span><\/p>\n

\u201cEven during frugal times, startups prioritise filling this position, as they need a solid technology foundation to run the business. In all tech-driven companies, a CTO acts as the backbone, ensuring that the infrastructure and the technologies required to scale the operations are in place and working in sync with business goals,\u201d he added.<\/span>\u00a0<\/span><\/p><\/blockquote>\n

Launched in 2009, Longhouse Consulting is a specialised executive search and leadership advisory firm, with a deep understanding of the talent landscape in the high-growth digital sector, emerging technologies, and the consumer internet space, operating under Careernet, a talent solutions provider since 1999. The Indian startup ecosystem was still in its infancy at the time. However, given their unique requirements and specific challenges, Das, an IITian, and his senior partner, Rohit Srivastava, understood the criticality of leadership hiring across startup stages.<\/span><\/p>\n

Longhouse Consulting has been working with late-stage ventures since their early stages and has helped them hire talent across roles. The company hires key talent for organisations to enable them to be future-ready by providing talent advisory and assisting them at different stages of their evolution, both India and globally. Longhouse Consulting offers a blend of expertise, innovation, and an understanding of the talent landscape.\u00a0<\/span><\/p>\n

The company’s legacy extends to curating complete leadership teams for key players in sectors like ecommerce, fintech and edtech, retail, food delivery, mobility, healthtech, logistics, SaaS, brick-to-click, VCs\/PEs, professional services, emerging industries, and IT and offshoring.\u00a0<\/span><\/p>\n

Longhouse Consulting has executed over 500 CXO mandates and established 100+ enduring client relationships. With a strategic focus on lending ventures, the firm has orchestrated external leadership hires, constituting 20% of its portfolio.\u00a0<\/span><\/p>\n

Key Challenges Of Leadership Hiring<\/b><\/h2>\n

Startups face several hurdles regarding leadership hiring, but a high turnover can be particularly painful. As top leaders anchor businesses and take them ahead, rapid and unplanned exits will hurt startups\u2019 growth. The C-Suite often exits amid unforeseen critical situations (think of merger and acquisition, demerger, reshuffle, financial crunch, or regulatory turmoil), recently observed in sectors like edtech, financial services, healthtech, and more.\u00a0<\/span><\/p>\n

Stable and profitable startups also face this issue. As per a 2023 annual roundup by Inc42, <\/span>more than 30 cofounders and CEOs<\/span><\/a> transitioned to other companies and started new ventures during the year. Even at an IPO-bound startup like Shiprocket, <\/span>nearly 89% of the entire leadership team<\/span><\/a> has been working for three years, underlining how brief their tenure could be.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

Given that the leadership exodus will continue for internal and external reasons, how does Longhouse Consulting help startups cope with this challenge?\u00a0<\/span><\/p>\n

\u201cWe start by looking at a startup\u2019s stage and go deep into its growth trajectory and likely challenges. Instead of solely focussing on finding the right profiles, we do a strategic analysis of the startup\u2019s requirements in the first place,\u201d said Das.\u00a0<\/span><\/p><\/blockquote>\n

\u201cOur approach goes beyond simply starting the search process based on a job description provided by the customer. We prioritise a thorough company analysis first, enabling us to propose a tailored strategy that aligns with their unique needs and goals. Our strength lies in offering advice that aligns new hires with broader business goals. We use our industry connections to find qualified candidates who are a good cultural fit.\u201d<\/span><\/p><\/blockquote>\n

For example, the firm may recommend hiring a <\/span>VP of Engineering<\/span> for an early-stage startup, leaving the role of a CTO open for a later stage when the business will require more out-of-the-box solutions and better tech integration for seamless growth. Such hiring helps foresight prevent premature recruitment and ensures budget flexibility.<\/span><\/p>\n

Longhouse Consulting has also crafted a hiring playbook for each stage. Here is a quick look at the essential criteria.<\/span><\/p>\n