The trouble usually arises when, under the guise of efficiency, people stop talking and just start doing. Small cliques within teams begin to form. Passive aggressive tendencies surface as work is withheld from judgement until it is totally finished. Information is hoarded or controlled. The frequent talks, IMs or status updates begin to trail off. Establishing the communication culture of a company is every bit as impactful as a shipping or hiring culture. Creating an environment where people can be recognized, challenged and valued is key in the earliest days of startup. When that communication breaks down early on, it’s a warning sign of trouble not to be overlooked.

BRYCE DOT VC: Early Warning Signs of Startup Trouble 

In my experience, this is a very real problem. Culture and communication are difficult to retrofit into an organization once it’s grown to a certain size but most growing companies don’t take it seriously enough until it’s too late.