The Hidden Cost of Growth: What Leaders Miss About Company Culture

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The Hidden Cost of Growth: What Leaders Miss About Company Culture

Erik Vermeulen, behavioural strategist, explains why rapid growth can dilute company culture and what leaders can do to protect what made them successful.

Every business wants to grow. More sales, more clients, more revenue. But what if the very thing you're chasing is quietly eroding the foundation that made you successful in the first place? That's the question at the heart of a recent conversation with Erik Vermeulen, a behavioural strategist and Managing Director of Ridgeline Consulting. With over 20 years advising organizations on culture, leadership, and performance—plus years leading expeditions through some of the world's toughest environments—he's got a unique take on why growth can be a double-edged sword. ### What Expeditions Teach Us About Uncertainty When you're leading a team across a desert or up a mountain, you quickly learn that adventure isn't about the activity itself. It's about any undertaking where the outcome is uncertain. "That is life. That is business," Vermeulen says. We tend to mask that uncertainty with rituals, routines, and structures. But the reality is, we have no certainty about tomorrow—whether we'll be around to meet next quarter's targets or lead our teams through the next challenge. So how should leaders operate when outcomes are unpredictable? Vermeulen suggests embracing the adventure mindset: accept uncertainty, adapt, and keep moving. ### The Two Things That Separate Great Teams from Good Ones Vermeulen points to two key differentiators: - **Culture** – the unwritten rules of what's accepted and what isn't. Great teams are crystal clear about which behaviors move them forward and which hold them back. - **A clear beginning and end** – this one's more controversial. Great teams know when they start and when they finish. They set a goal, execute, and then reset before tackling the next challenge. Most corporate teams just keep going, chasing target after target without ever hitting pause. That's a recipe for burnout and stagnation. ### Why Growth Dilutes Culture Here's where it gets uncomfortable. Vermeulen uses a simple metaphor: cordial. > "The glass is the structure that allows us to do business. We add the cordial—the culture—and it's what gives the drink its flavor. But when you keep adding water (more people, more processes, more layers), the taste fades. You end up with a diluted version of what you started with." Growth is necessary. But without intentional effort to preserve and reinforce culture, it weakens. Leaders need to watch for signs: declining engagement, increased politics, decision-making slowing down, and a sense that "it's just not the same anymore." ### What Leaders Can Do You can't stop growth, nor should you want to. But you can protect what makes your company special. - **Be explicit about your culture.** Define the behaviors you value and hold people accountable. - **Create team charters.** Give teams a clear start and end date for projects, then reset. - **Communicate constantly.** As you scale, over-communicate your vision and values. - **Hire for cultural fit.** Skills can be taught; attitude and alignment are harder to change. Vermeulen's insights remind us that growth isn't just about numbers. It's about people, behaviors, and the stories we tell ourselves about who we are. Lose sight of that, and you might wake up one day wondering why success feels so hollow. So, as you scale, ask yourself: are you adding water to the cordial, or are you protecting the recipe that made it great in the first place?