Julian Teicke, founder and CEO of wefox
In 2010, we founded our first company, DeinDeal, which became the fastest growing startup in Switzerland. We sold it in 2015. This experience fueled my passion to build more businesses from scratch. In 2015, we founded Wefox, which has grown into one of the world’s leading insurance companies. wefox has over 1,000 employees and generates over $800 million in revenue annually.
Over the past eight years, I have also co-founded eight other technology companies in industries including healthcare, payments, real estate, services and human resources. I’ve learned a lot about business growth in different industries over this time and while there are many factors that drive business growth, one common theme consistently emerges as being both the biggest challenge and an untapped opportunity: the evolution of culture.
Transformation is not just about changing strategy or structure. It is a complex journey that involves evolving the collective mindset, shared values and culture of an organization.
In building my businesses, I have always been amazed by the theory of spiral dynamics, which I believe offers a model for personal and organizational growth. This framework serves as a treasure map for growth, identifying seven key stages of individual and organizational evolution:
- Survival: Here the emphasis is on basic needs. Organizations are like a bunch of pirates, each looking out for themselves.
- Tribal: The importance of community comes into play. Organizations evolve into tribes led by trusted figures.
- Power: The ego takes center stage as individuals seek dominance. Organizations reflect this by adopting a power-centered, almost mafia-like structure.
- Order: Rules and moral codes are established. Organizations become well-organized entities with strict hierarchies. Leaders often achieve their status through their position.
- Realization: The focus now is on success and productivity. Leadership becomes performance-based.
- Community: The emphasis is on balance, sustainability and democratic decision-making. Organizations develop progressive structures and promote transparency.
- The integration: The organization becomes a living and adaptable entity, recognizing and integrating all previous stages.
The higher the level, the higher the processing power and efficiency of an organization. But the path to becoming the best version of an organization is not linear; it’s a spiral journey. It involves a complex interaction between individuals and the organization, often marked by periods of unrest and instability. Remember, there is no growth without pain.
Leadership plays a central role in this evolutionary journey. Leaders must first identify the current state of their organization and understand that they are building for people, not themselves.
It is a delicate dance, requiring a balance between control and innovation, competition and cooperation. Organizations are the mirror of human growth because there is a symbiotic relationship between people and business evolution in which there is a continuous reinforcing loop.
Sometimes employees may be further along in their journey than their organization, causing tension. Leaders must be aware that they cannot force the organization to evolve faster than its natural pace.
The key is to make small, incremental adjustments that foster a culture of continuous learning and adaptation, where change is seen as an essential part of growth. It’s about understanding how individuals and organizations have a symbiotic relationship, strengthening each other and shaping each other’s growth.
I’ve also noticed that different industries have dominant milestones that indicate their general willingness to innovate. The higher the level, the greater the potential for growth and innovation. This knowledge can be a competitive advantage, helping you understand how to become the leader in your industry. You don’t have to be the most progressive company on the planet, you “just” need to be the most progressive company in your industry to win.
Employees and organizations are like two tango dancers. They influence each other in a loop. For example, if most employees are at stage 3, the organization will likely have a “mafia-like” culture. This culture then reinforces the Stage 3 mindset among employees. It’s a cycle and the best you can do as a leader is to carefully disrupt old ways of thinking, slowly moving the organization to stage 4 and then further – but always one stage at a time . If you move too quickly, you will lose your most important asset: your employees.