Leading Teams in a Living System: Beyond the Ecosystem Buzz
Leading a modern team isn’t about pushing levers; it’s about guiding interconnected parts in a shared ecosystem. In startup teams, agility is the name of the game, while incumbent teams lean on deep-rooted expertise. Together, they’re a force to be reckoned with—if they can find harmony within a shared purpose.
Why This Matters
Bringing startup energy and incumbent know-how into alignment isn’t simple, but it’s where true synergy happens. Startup teams bring the speed, fresh ideas, and readiness to pivot; incumbents bring stability, experience, and refined processes. Our job is to foster conditions where these strengths blend rather than clash.
TL;DR
Let’s Be Real:
In the world of team dynamics, it’s not all kumbaya. Startups chase agility and rapid growth, aiming to disrupt the market, while incumbents lean into stability, grounded by years of experience. But can these two forces work together to create lasting value, or are they set on different paths? It’s tempting to focus on short-term wins (cue: fast growth) over long-term sustainability, but without balance, both risk either burning out or becoming irrelevant.
The Lowdown:
Bringing startups and incumbents together isn’t just a “nice to have”—it’s the formula for resilient, impactful systems. Startups bring speed and fresh ideas but often lack the staying power of larger companies. Incumbents provide structure and established value but can struggle to keep up with the pace of innovation. The secret sauce? A blend of startup agility with incumbent wisdom, creating an ecosystem that grows organically without losing sight of profitability or purpose.
What’s In It for You:
Teams that balance innovation with stability are 70% more likely to hit long-term growth targets and avoid costly pivot cycles (McKinsey, 2025).
Investor dollars increasingly favor sustainable growth: Companies that prioritize both agility and resilience attract 60% more investment interest over purely growth-driven counterparts (BCG, 2025).
Consumers are watching: 75% report higher trust in brands that align innovation with financial responsibility and sustainability (Deloitte, 2025).
The Heart of the System: Every Actor Has Influence
Systems Change from Within: Respect for Unique Roles
Imagine a bustling rainforest: some plants grow fast, eager to soak up the sun (hello, startups), while the older trees provide shade and stability (cue incumbents). Leadership here means recognizing each role’s value. You don’t control the forest; you help each part thrive so the whole system is robust.Startup vs. Incumbent: Startups often come in ready to challenge the status quo, but without the grounding wisdom of incumbents, they risk veering off course. Incumbents, meanwhile, gain fresh insights from startups’ agility, keeping them relevant in a changing world. Together, they create a balanced ecosystem.
Cheek and Science: Evolutionary biology backs this up—ecosystems thrive when organisms support and adapt to each other, not when one overtakes the other. Lesson? Let each part do what it does best; innovation will follow.
Innovation as Pattern Disruption
System Innovation: Change the Dance, Not the Dancer
To innovate, it’s less about upending the players and more about nudging existing patterns. Startups excel here, bringing a fresh dance step to the mix, while incumbents bring the rhythm that keeps the beat consistent. A leader’s role is to keep the innovation flowing without letting anyone lose their footing.Startup vs. Incumbent: Startups innovate through necessity—new ideas are their currency. Incumbents, however, know that innovation isn’t just about what’s shiny but what’s sustainable. Together, they can shift patterns in a way that feels revolutionary yet grounded.
Scientific Nod: Psychology of change shows us that teams that integrate diverse perspectives outperform siloed ones. The partnership of startup fluidity with incumbent structure generates resilience and creativity. It’s the team equivalent of cross-training.
Scarcity Mindset? We Don’t Know Her.
Flipping the Script from Scarcity to Potential
Startups and incumbents often come from different scarcity perspectives. Startups may feel resources are scarce (capital, time, etc.), while incumbents may feel they have “legacy scarcity” (limited maneuverability or innovation opportunities). Our job as leaders is to highlight the abundance within both—startups’ creativity meets incumbents’ resources.Startup vs. Incumbent: Startups can offer rapid prototyping and the speed to seize opportunities, while incumbents bring the networks, funding, and stability to scale them. Scarcity thinking dissipates when they both realize they’re a resource to each other.
Science Bite: Economists find that collaboration between resource-rich and resource-scarce entities leads to mutually beneficial innovations. It’s proof that abundance doesn’t come from having it all but from recognizing what each side offers. Scarcity is only a mindset—one we’re ready to ditch.
Identity & Diversity: The Core of Systemic Leadership
Being Whole and Part at the Same Time
Teams that blend startup and incumbent mindsets are positioned to harness the best of both worlds. Startups thrive on unique identities and experimentation, while incumbents offer a sense of belonging to something greater. Leaders here don’t just blend; they amplify individuality within a collective mission.Startup vs. Incumbent: Startups may be scrappy, breaking molds and pushing boundaries, while incumbents provide a legacy that grounds the brand’s identity. Together, they show that diversity isn’t about choosing one side but embracing both.
The Leadership Stance: Research shows that diverse, multi-disciplinary teams can outpace homogenous groups by leveraging a range of problem-solving approaches. In other words, we need a melting pot, not a monoculture.
Sustainable Growth Through Organic Development
The Organic Approach: Grow, Don’t Force
In a hybrid system, sustainable growth is about organic alignment. Startups bring urgency to innovate, but incumbents’ long-view mentality ensures that these changes are not only groundbreaking but sustainable. Metrics matter, but forced growth is a short-lived gain.Startup vs. Incumbent: Startups are driven by fast wins, but incumbents remind us that longevity requires pacing. Leaders in this ecosystem set milestones that both inspire rapid change and respect the need for lasting impact.
Science Fact: Studies in team dynamics show that when teams pursue organic, shared goals, their overall impact lasts longer and resonates deeper. Translation: Sustainable is achievable when everyone’s on the same page.
Creating Value as a Team and as Individuals
Individual and Collective Value
Each person brings unique strengths. Startup minds love experimentation and new opportunities, while incumbents excel in refining and scaling. Leaders help individuals see how their growth amplifies the team’s mission.Startup vs. Incumbent: Startups find value in breaking things and learning, while incumbents find value in consistency and refinement. The key is to create a feedback loop where these differences reinforce, rather than hinder, each other.
Science Tie-in: Social capital research tells us that when people see how their unique contributions serve a bigger purpose, engagement and productivity soar. Purpose isn’t just good for morale; it’s strategic.
The Ecosystem: More than Just Collaboration—It’s a Community
Attracting & Sustaining Participation
Creating a sense of belonging between startups and incumbents goes beyond a simple collaboration agreement. True community requires a deeper alignment on values and goals. How? By establishing shared “attraction points” where both types of teams see value.Startup vs. Incumbent: Startups attract individuals drawn to risk and rapid innovation, while incumbents attract those interested in depth and stability. Blending these strengths in a community that feels like home to both creates a sense of lasting alignment and purpose.
Cheek and Science: Teams that tap into communal bonds are more cohesive and effective over time. The biology of belonging, as science shows, means that we’re hardwired to excel when we feel we’re part of something meaningful. The best teams are bound by mission, not meetings.
Closing: Systems Leadership in Real-Time
Leading a living system of startups and incumbents isn’t about imposing control; it’s about inspiring co-evolution. Each side offers distinct strengths that, when combined, drive powerful, resilient innovation. The ecosystem doesn’t need a hero—it needs a guide. Leaders in this space understand that the key to long-term value is letting startups and incumbents find synergy, with just enough structure to thrive and the space to grow.