Scaling company culture at rapid growth: 6 lessons from Atlan Cofounder Prukalpa Sankar
Prukalpa Sankar, cofounder of Atlan, is no stranger to the hurdles of entrepreneurship, including its inevitable growing pains as the company has seen its revenue grow 7x in the last two years. Despite these changes, culture remains a steadfast pillar at Atlan. “Culture isn’t static; it’s about evolving rituals while keeping values constant,” Sankar explains.
“Culture isn’t static; it’s about evolving rituals while keeping values constant.”
In a fireside chat with Insight Partners, she shared her strategies for defining, embedding, and scaling culture while hiring intentionally.
Here are the top takeaways from our conversation.
1. Defining culture: Values versus rituals
Sankar’s approach to culture emphasizes the difference between values and rituals. As she explains, many people mistake activities like celebrating birthdays for culture. Instead, she says, “Culture is about values.” Atlan, for example, explored its values using a “Mars exercise” to identify six core values that guide decision-making and behavior across the team.
Imagine your company as a civilization on the brink of an apocalyptic event. To preserve its essence and rebuild elsewhere, you’d need to select seven individuals who best embody its core values. These people would serve as the foundation for a new beginning, carrying forward the culture and principles of the original organization.
Sankar explains the best way to understand these values is to ask people two questions:
First, “If you start a completely different company, in a completely different business line, in a completely different vertical, and a completely different industry, which values will you continue to hold?” she asks.
Her second question to participants is, “If these values became a competitive disadvantage, would you still uphold them?”
“The rituals have to change with every evolution [of the company], but the values have to always be there,” she explains.
2. Beyond the “culture interview”
“You can’t actually test for all your values in one conversation with people,” Sankar explains. Instead, Atlan’s hiring process integrates values into every step. For example, when hiring, they screen for their “One Team” value, which is rooted in assessing candidates based on outcomes rather than resumes. This eliminates biases related to pedigree, experience, or background.
“You can’t actually test for all your values in one conversation with people.”
One key step in Atlan’s hiring process is the “challenge statement,” a real-world problem candidates must solve. This rigorous approach often leads to a steep drop-off rate because it’s time-consuming for applicants but those who move forward are evaluated on their abilities and outcomes.
Other methods for testing values include:
- Observing how candidates respond to direct feedback, an integral part of Atlan’s high-feedback culture
- Including open-ended Easter egg questions in interviews to assess resourcefulness and preparation
3. Navigating growth without compromising culture
Rapid growth poses a unique challenge: How do you scale while keeping your culture intact? Sankar explains that if more than 50% of a team is new, it can dilute culture, as new hires bring their own values and experiences.
To address this, Atlan takes proactive steps, including monitoring teams where cultural alignment may be weaker due to high percentages of new hires.
Sankar shared a pivotal moment when Atlan had to part ways with a key team member who didn’t uphold their values. Though difficult, the decision solidified the company’s commitment to its cultural principles and earned widespread respect from her team.
4. “Focus on the most critical issue for the company at its current stage”
For founders, the tension between focusing on culture and driving business outcomes is ever-present. Sankar explains that Atlan prioritizes existential challenges at each stage of growth. “You hit a point where you know the next phase of scale is all about the people, and it’s about the people and the performance,” Sankar says. “That still is the most existential thing to help you drive the company’s growth.”
In Atlan’s early days, the emphasis was on achieving product-market fit. As the company transitioned to “go-to-market scale,” the focus shifted to building scalable processes, fostering a strong culture, and managing performance.
“Focus on the most critical issue for the company at its current stage. Everything else should align with achieving that goal.”
Her guiding principle: “Focus on the most critical issue for the company at its current stage. Everything else should align with achieving that goal.”
5. Adapting roles to retain talent
Not everyone who thrives in a startup’s early stages excels during periods of rapid growth. Atlan acknowledged this reality and introduced a “founder track” to provide opportunities for early team members who prefer tackling zero-to-one challenges rather than operational roles.
This approach enables Atlan to retain cultural champions while leveraging their strengths in areas where they add the most value. Sankar’s belief is that companies will always have zero-to-one problems to solve, and these roles provide a natural fit for entrepreneurial team members.
6. Values in decision-making
Atlan’s values deeply influence its decision-making processes. A key example is through their problem-proposed solution framework. This approach requires employees to rigorously define problems before presenting solutions.
Sankar also points to Atlan’s value called “problem first, solution second.” “We’re a very problem-first culture; we go very deep into the problem. And we are very [beginner-minded] when thinking about the solution.”
Another example is the prioritization framework: “Every decision is in this lens of customer greater than company, greater than team, greater than me.” Sankar explains that this principle simplifies decision-making and aligns actions with the company’s mission. For instance, employees prioritize customer needs over attending industry events or internal goals.
Looking ahead, as Atlan continues its growth trajectory, these principles serve as its cultural compass. “The rituals may evolve,” Sankar reflects, “but our core values remain our foundation for scaling Atlan.”
These frameworks promote consistency and alignment across teams while fostering a culture of accountability and clarity.
Insight Onsite works to connect Insight portfolio companies with peers to scale faster and more efficiently. Insight portfolio companies can access the full recording of this conversation here.
Editor’s note: Insight Partners invested in Atlan.