Alexander Koene & Kim Cramer PhD

insights

10-04-2026

Article: How to preserve organisational culture during rapid scaling

What does scientific research say about culture dilution during hypergrowth? Discover five proven principles to protect your organizational culture while scaling up and expanding internationally.

How to preserve organisational culture during rapid scaling

Rapid growth is exciting. But what if your culture doesn't grow with you? Discover what scientific research reveals about the pitfalls of hypergrowth, and how to protect your organizational identity while scaling up or expanding internationally.

In a nutshell: Growth isn't a threat to your culture; neglect is. Scientific research shows that fast-growing organizations struggle with culture dilution, identity loss and declining engagement. But it doesn't have to be that way. Organizations that consciously scale their culture perform better, retain talent longer and build brands that still ring true after tenfold growth. This article shows you how.


Why culture comes under pressure during rapid growth

Picture this: your organization doubles in size within a year. New offices, new markets, new teams. The energy is palpable. But somewhere, something starts to shift. Onboarding feels rushed. New colleagues don't know the founding story. Decisions that used to happen naturally now get stuck in layers and processes.

This isn't failure. It's a law of organizational physics. And no, a ping-pong table in the lobby won't fix it.

Research published in Technological Forecasting & Social Change (2024) describes this phenomenon as 'growing pains': internal challenges that arise when organizational development can't keep pace with growth speed. The researchers identify three structural drivers: time pressure, constant change and resource scarcity. Together, they ensure that culture; the invisible fabric that determines how people collaborate; is the first thing to tear.

Edgar Schein, the founding father of modern thinking about organizational culture, described culture as an iceberg. On the surface you see artifacts: the office design, the rituals, the way people greet each other. Beneath that lie the shared values and beliefs. And at the very bottom: the unconscious assumptions about how things are supposed to work. During rapid growth, those deeper layers are the first to be damaged, often without anyone noticing.


What science says about culture dilution

Let's be honest: 'safeguarding culture' sounds abstract. But the consequences of culture dilution are anything but. They're measurable, tangible and expensive. Very expensive.

The Vanderbilt University Capstone research on hypergrowth companies concludes that organizational culture becomes 'diluted' during rapid growth through multiple converging factors: massive influx of new employees, loss of shared history, and the inability to transfer implicit norms explicitly.

Chatman and O'Reilly, two of the most cited researchers in organizational culture, developed the Organizational Culture Profile (OCP). Their research demonstrates that the degree of 'person-organization fit'; the alignment between personal values and organizational culture; is a direct predictor of commitment, satisfaction and turnover intention. During rapid growth, that fit declines, simply because there's less time to select for values and less room to internalize culture.

The Harvard Business Review confirms this in a 2019 analysis on scaling culture in fast-growing companies: when headcount grows explosively, informal culture transfer and 'learning by osmosis' become impossible. What remains are words on a wall. And let's be honest: nobody has ever been inspired by a poster that reads 'We are innovative' in the cafeteria. Unless you deliberately invest in translating culture into structure.

And then the numbers that hurt: meta-analyses of post-merger integrations (Marks & Mirvis, 2011; Cartwright & Cooper, 2014) estimate that more than half of all mergers and acquisitions fail to deliver the intended value, with cultural conflicts consistently identified as one of the primary causes. Not bad strategy. Clashing assumptions about how work is supposed to be done. The spreadsheets checked out. The people didn't.

An honest caveat: the relationship between culture and performance isn't a simple straight line. Research by Sørensen (2002, Administrative Science Quarterly) shows that organizations with a very strong culture can actually be less adaptive in volatile environments. A culture held too rigidly can stifle innovation and adaptability. The goal, then, isn't to freeze culture, but to let it move deliberately; sturdy enough to provide direction, flexible enough to survive.


The five pitfalls of culture during scaling

Based on available research, we see five recurring patterns in organizations that lose their culture during growth:

1. Speed over selection in hiring

During hypergrowth phases, a structural tension arises between hiring speed and quality of cultural fit. Schein argued that culture can only form when a group builds a shared history. When dozens of new employees join every month; or hundreds during acquisitions; that shared foundation disappears faster than it can be built.

2. Evaporation of implicit knowledge

In small teams, values are transferred through daily interaction. Nobody needs to explain 'how we do things here'; you pick it up. As you grow, that mechanism disappears. What remains are formal documents that rarely capture the actual culture.

3. Leadership that doesn't scale

In his analysis of startup failure, Tom Eisenmann (Harvard Business School, 2021) describes how founders accustomed to hands-on management hit a wall once the organization grows beyond the point where personal oversight works. The shift to a delegated leadership model isn't just an operational adjustment; it requires a fundamentally different leadership culture. And that transition fails more often than it succeeds.

4. Fragmentation through internationalization

International expansion adds an extra layer: cultural diversity. What counts as 'direct feedback' in Amsterdam may be perceived as rude in Tokyo. The concept of 'glocalization', introduced by sociologist Roland Robertson (1995) and since widely applied in international brand strategy, describes the balance successful global organizations find: keeping core values consistent while adapting their expression locally.

5. Systems replacing culture

During scaling, processes, protocols and systems are introduced to prevent chaos. Logical. But when systems take the place of trust and autonomy, you create a compliance culture instead of a values culture. The bureaucracy grows, the soul shrinks. Congratulations: you've built a perfectly efficient organization that nobody wants to work for.


How to actually scale culture: five science-backed principles

The good news? Culture dilution isn't a law of nature. It's the result of unconscious choices. And conscious choices can prevent it. Here's what the science teaches us:

1. Make the implicit explicit

Schein's model teaches us that the most powerful layer of culture; the unconscious assumptions; is also the most vulnerable. During growth, you need to surface those assumptions. Not by writing a culture handbook that nobody reads (we know that drawer), but by collectively exploring: what do we actually believe about what good work looks like? About how we make decisions? About what we expect from leaders?

In practice, this means collectively discovering the 'story of the organization.' Not a marketing story, but an honest narrative about who you are, what drives you and where you're heading. That story becomes the anchor against which you can test every growth decision.

2. Hire for values, not just skills

Chatman and O'Reilly's research is crystal clear: person-organization fit is a stronger predictor of long-term success than technical competence alone. That doesn't mean looking for clones. It means designing selection processes that explicitly test whether someone's personal values align with your organizational culture.

In practice: develop a cultural fit framework that you consistently apply in every hire. Not as a vague gut-feel check, but as a structured part of the selection process.

An important nuance: sociologist Lauren Rivera (2012, American Sociological Review) warned that 'culture fit' in practice often becomes a cover for homogeneity and unconscious bias. Those who only look for people who 'fit in' inadvertently exclude perspectives the organization needs most to grow. The solution isn't to abandon culture fit, but to complement it with 'culture add': deliberately seeking people who strengthen the culture with new perspectives, backgrounds and ways of thinking, without undermining the core. The first protects your culture. The second prevents it from becoming an echo chamber.

3. Invest in cultural infrastructure

Large organizations have physical infrastructure: offices, IT systems, supply chains. But culture needs infrastructure too. Think onboarding programs that don't just explain processes but convey the organizational story. Rituals that create connection. Leadership development that centers culture stewardship.

The 2019 HBR analysis emphasizes that successful hypergrowth companies designate 'culture carriers': employees who are specifically tasked with transferring culture to new teams and locations. Not as a side job, but as a core responsibility.

4. Measure cultural health, not just financial health

You can't manage what you don't measure. And yet most organizations have no dashboard for cultural health. Chatman and colleagues offer the OCP as a scientifically validated instrument for measuring and monitoring culture. But you don't need to set up academic research. Frequent, lightweight check-ins; short pulse surveys, team retros, one-on-ones; give you the data to spot cultural shifts before they become problems.

Don't wait for the annual employee satisfaction survey. By the time those results are analyzed, presented and discussed in a steering committee, your best people are working somewhere else.

5. Adapt the expression, not the essence

During international expansion, it's tempting to 'adapt the culture to the local market.' But research consistently shows that successful global organizations keep their core values universal and only localize the form of expression.

Concretely: your value of 'openness' might manifest in the Netherlands as direct feedback in a team meeting, and in Japan as an anonymous feedback system that achieves the same transparency in a culturally appropriate way. The value is the same. The form may differ.


What brand culture has to do with it

This is where it gets interesting. Because organizational culture and brand culture aren't separate worlds. They're two sides of the same coin.

Your brand isn't what you communicate. Your brand is what your people experience and carry forward every day. If your culture dilutes during scaling, your brand dilutes with it. Not on your website; you can update that. But in the daily experience of customers, partners and employees.

At BR-ND People, we believe that brands and culture can be a force for a better society. But only when they ring true from the inside out. A beautiful brand story that isn't carried by the people in your organization is like a Michelin-starred restaurant with a microwave in the kitchen. It looks fantastic, until someone peeks behind the scenes.

That's why we always start with the people. Not with the marketing department. We discover the organization's story by listening to employees at every level. From the shop floor to the boardroom. Because the most powerful brand story is the one people recognize as their own.


International expansion: carrying culture across borders

Scaling internationally adds a fascinating dimension to the culture question. You're not just dealing with growth in numbers, but growth in contexts. Different languages, different norms, different expectations.

Research by Joshua Conrad Jackson (University of Chicago Booth School of Business), published in the Harvard Business Review, shows that companies like Walmart failed in their international expansion not because of a bad product, but because of a cultural blind spot. They assumed that what worked in the US would automatically work in Germany and South Korea. The lesson? You can export your business model, but you have to translate your culture.

Successful international culture deployment requires three things:

Cultural intelligence at leadership level. Leaders managing international teams must look beyond their own cultural frame of reference. That requires training, awareness and the humility to recognize that 'how we do things' isn't universal.

Local culture carriers. In every new market, you need people who understand both the local context and embody the organization's core values. They form the bridge between the global brand story and the local reality.

A shared story with room for variation. The organizational story must be clear enough to resonate universally, and flexible enough to come alive locally. That's not a compromise. That's strength.


How BR-ND People helps organizations with cultural scaling

We work with organizations that are growing and want their culture and brand to evolve alongside them, without losing their core. Our process is rooted in science and co-creation:

Step 1: listen and gather

We start with in-depth interviews, roundtable discussions and surveys among employees at all levels. We map the current culture: not how it reads on paper, but how it's actually experienced.

Step 2: analyze and interpret

Social scientists and brand strategists analyze the gathered insights. Where is the energy? What are the shared beliefs? Where are cracks forming due to growth? This is where data and empathy converge.

Step 3: co-create and anchor

Together with a sounding board of employees, we develop the brand story, purpose and strategic direction. No top-down dictate, but a shared journey of discovery.

Step 4: activate and embed

A story that ends up in a drawer is the most expensive document your organization has ever produced. And trust us, we've seen enough of them to open a drawer museum. Activation means: translating the story into behavior, rituals, leadership development and concrete actions. From onboarding to client contact, from procurement to innovation.


Checklist: is your culture ready for scaling?

Be honest. Answer these questions:

  • Can new employees explain what your organization stands for after their first month, in their own words?
  • Is your selection process designed to test for cultural fit and cultural enrichment?
  • Do you have a mechanism for measuring cultural health, separate from financial performance?
  • Are your core values recognized and experienced by employees across all teams and locations?
  • Have you designated culture carriers responsible for transferring culture during growth?
  • Do you dare to be transparent about where your culture is under pressure?

If you have to answer 'no' to more than two of these questions, it's time for a real conversation.


Frequently asked questions about organizational culture and scaling

What is culture dilution during rapid growth?

Culture dilution is the gradual weakening of an organization's shared values, beliefs and behavioral norms caused by rapid growth in people, locations or markets. Scientific research shows this is one of the biggest risks during hypergrowth; not because growth is harmful, but because the mechanisms through which culture is transferred don't automatically scale.

Why is organizational culture important when scaling?

Organizational culture is the strongest predictor of employee satisfaction, engagement and turnover intention in growing organizations. Research by Chatman and O'Reilly shows that strong person-organization fit; the alignment between personal values and organizational culture; leads to higher engagement and lower turnover. When scaling, that fit comes under structural pressure.

How do you preserve company culture during international expansion?

International culture management is the practice of keeping your core values universal while adapting their expression locally. Invest in local culture carriers, train leaders in cultural intelligence and develop an organizational story that's clear enough to resonate globally; and flexible enough to come alive locally.

What's the difference between 'culture fit' and 'culture add'?

Culture fit is the degree to which someone's personal values align with the organizational culture. Culture add is the deliberate search for people who strengthen the culture with new perspectives, without undermining its core. The first protects your culture; the second enriches it. Both are essential during growth.

How do you measure organizational culture?

Measuring organizational culture can be done with the Organizational Culture Profile (OCP) by Chatman and O'Reilly; a scientifically validated instrument that maps culture characteristics and person-organization fit. In practice, you can also work with frequent pulse surveys, team retros and structured one-on-ones to detect cultural shifts early.

When should you adapt your culture during growth?

Culture evolution is the deliberate co-development of systems, processes and forms of expression while the core; your fundamental values and beliefs; remains stable. Adapt the form when existing structures no longer support culture transfer. But never touch what drives your organization at its core.


Growth isn't an excuse, it's an invitation

Rapid growth doesn't have to come at the cost of who you are. On the contrary: it's precisely the moment to consciously choose who you want to be. At greater scale. With more people. In more markets.

The organizations that do this best aren't the ones that freeze their culture. They're the ones that consciously let their culture co-evolve. Who see the conversation about values not as a luxury for quiet times, but as a strategic necessity for moments of growth.

The difference between an organization that grows and one that flourishes? You don't make that difference with systems and processes alone. You make it with people who know what they stand for, and a story they can tell with conviction; in Amsterdam, in Tokyo, in São Paulo.

Curious how your organization can scale culture and brand alongside growth? Get in touch with BR-ND People and discover how we build cultures that don't just grow, but grow stronger.


Sources and further reading

  • Schein, E.H. (2010). Organizational Culture and Leadership (4th edition). Jossey-Bass.
  • Chatman, J.A. & O'Reilly, C.A. (2016). Paradigm lost: Reinvigorating the study of organizational culture. Research in Organizational Behavior, 36, 199-224.
  • Moedt, K., Lechner, C. & Khapova, S. (2024). Growing pains during scale-up hypergrowth: Integration and future research agenda. Technological Forecasting & Social Change, 209.
  • Jackson, J.C. (2024). A Model for Expanding Your Business into Foreign Markets. Harvard Business Review.
  • HBR (2019). Scaling Culture in Fast-Growing Companies. Harvard Business Review.
  • Vanderbilt University (2023). Developing and Retaining Organizational Culture During Hyper-Growth. Capstone Project.
  • Sørensen, J.B. (2002). The Strength of Corporate Culture and the Reliability of Firm Performance. Administrative Science Quarterly, 47(1), 70-91.
  • Marks, M.L. & Mirvis, P.H. (2011). Merge Ahead: A Research Agenda to Increase Merger and Acquisition Success. Journal of Business and Psychology, 26(2), 161-168.
  • Cartwright, S. & Cooper, C.L. (2014). Mergers and Acquisitions: The Human Factor. Butterworth-Heinemann.
  • Eisenmann, T. (2021). Why Startups Fail: A New Roadmap for Entrepreneurial Success. Currency/Random House.
  • Rivera, L.A. (2012). Hiring as Cultural Matching: The Case of Elite Professional Service Firms. American Sociological Review, 77(6), 999-1022.
  • Robertson, R. (1995). Glocalization: Time-Space and Homogeneity-Heterogeneity. In M. Featherstone et al. (Eds.), Global Modernities. Sage.

Client stories

Organizations that scale culture and brand alongside growth:

  • Thorizon: a new future for clean energy - Building a new organization around groundbreaking nuclear technology, we co-created a brand identity that anchors the pioneering spirit and shared purpose of the team; essential for a young organization in hypergrowth.
  • Van Vulpen: the heartbeat beneath our feet - In the technical world of cables and infrastructure, we helped Van Vulpen preserve their strong family culture during rapid growth. By defining the purpose around 'connection', a shared compass emerged that works from construction site to boardroom.
  • Nextview: a Brand Culture Manual for international growth - Nextview scaled from 60 to several hundred employees across multiple European countries in 3-4 years. We developed a 100-page Brand Culture Manual that became the foundation for onboarding, leadership development and international culture transfer; ensuring every new colleague, whether starting in Amsterdam or Asia, receives the same cultural immersion.

Written by: Alexander Koene & Kim Cramer PhD


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