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What is Upwelling and How Does it Apply to Your Startup
  1. Glossary/

What is Upwelling and How Does it Apply to Your Startup

6 mins·
Ben Schmidt
Author
I am going to help you build the impossible.

In the world of oceanography, upwelling is a foundational process that sustains some of the most productive ecosystems on the planet. It occurs when wind blows across the ocean surface, pushing warmer water away. This displacement allows colder, denser, and nutrient-rich water from the deep to rise and take its place. This cycle is not just a geological curiosity. It is the reason why certain coastal areas are teeming with life while others remain aquatic deserts.

For a startup founder, this physical phenomenon offers a precise framework for understanding how resources, information, and talent move within a growing company. Most organizations suffer from a form of stagnation where the surface layer, the visible leadership and the most common strategies, becomes depleted of new ideas. Without a mechanism to bring the deep nutrients to the top, the business begins to lose its vitality.

Understanding the Mechanics of Upwelling

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To understand upwelling in a business context, we have to look at the stratification of a company. In the ocean, water sits in layers based on temperature and density. In a startup, layers often form based on hierarchy, tenure, or department. The surface layer is where the action happens. It is the interface with the customer, the pitch to the investor, and the daily grind of operations.

Over time, this surface layer uses up its nutrients. These nutrients are the fresh perspectives, the raw data from the ground floor, and the untapped potential of junior employees. If the water remains still, the surface becomes a closed loop. It gets warmer and more comfortable, but it eventually lacks the substance required for significant growth.

Upwelling requires an external force. In nature, that force is the wind. In a startup, the wind is usually market pressure or a deliberate choice by the founder to disturb the status quo. When the wind blows, it moves the stagnant surface water out of the way. This creates a vacuum. Physics dictates that something must fill that void. In a healthy organization, what fills that void is the cold, hard truth from the depths of the business.

This movement is often uncomfortable. Cold water is a shock to the system. Similarly, bringing raw, unpolished insights from the bottom of your organization to the leadership level can be jarring. However, these insights are dense with value. They contain the information that has been ignored or forgotten while everyone was focused on the surface level metrics.

Comparing Upwelling to Downwelling and Stratification

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It is helpful to compare upwelling to its opposite: downwelling. Downwelling occurs when surface water becomes dense and sinks. In a corporate environment, this looks like top-down management where directives from the executive suite sink through the layers of the company. While this is necessary for alignment, it does not bring new nutrients into the system. It simply moves the existing surface energy lower.

If a company only experiences downwelling, it becomes top-heavy. The instructions from the top may be clear, but they are often based on the depleted resources of the surface layer. There is no infusion of new life. The system becomes predictable and eventually lacks the resilience needed to survive a changing environment.

Another state to consider is stratification. This is when the layers of the ocean do not mix at all. A stratified startup is one where departments are siloed and communication only happens horizontally. The engineers never talk to the sales team, and the founders never talk to the support staff. This leads to a lack of circulation. The nutrients stay at the bottom where they cannot be used, and the surface stays depleted.

Upwelling breaks this stratification. It forces a vertical mix. It ensures that the entire water column is active. A startup that practices upwelling is constantly pulling from its deepest reserves to refresh its most visible parts. This creates a cycle of constant renewal rather than a static hierarchy.

Scenarios Where Upwelling Drives Value

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There are specific moments in a startup life cycle where inducing upwelling is critical for survival. One such scenario is the post-launch plateau. This happens when the initial excitement of a product launch wears off and growth begins to level out. The surface strategies that got you to the launch are no longer sufficient. You need the nutrients from the deep.

In this case, upwelling might involve taking your most junior customer support reps and putting them in a room with your product designers. The support reps hold the deep water data. They know what the customers are actually struggling with. By moving that information to the surface, you can pivot or iterate with a level of precision that surface level market research cannot provide.

Another scenario is the hiring crisis. When a startup grows quickly, there is a temptation to look outward for every leadership role. However, upwelling suggests that there is often a dense layer of talent already within the company that simply needs a path to the surface. Promoting from within is a form of upwelling. It brings someone with deep institutional knowledge into a position where they can influence the direction of the company.

Finally, upwelling is essential during a market shift. When the wind of the economy changes direction, your current surface strategy might suddenly become irrelevant. You have to be willing to push that strategy aside to see what new ideas are waiting in the depths of your team. The founders who survive are those who can facilitate this circulation quickly.

The Unknowns of Organizational Circulation

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While the concept of upwelling provides a solid framework, there are still many questions that we do not have clear answers for in a business context. For instance, how do we accurately measure the nutrient density of an internal team? In the ocean, scientists can measure nitrates and phosphates. In a business, it is harder to quantify the potential value of a hidden idea or an overlooked employee.

There is also the question of frequency. How often should a founder induce upwelling? If the wind blows too hard or too constantly, the ecosystem can become turbulent. There is a balance between stability and circulation. Too much change can prevent the nutrients from actually being utilized by the organisms at the surface.

We also have to consider the cost of the process. In nature, upwelling is a product of physical laws and costs nothing in terms of energy for the organisms involved. In a startup, moving information and people takes time and capital. Is there a point where the cost of circulation exceeds the value of the nutrients brought to the top?

As you build your company, think about the water column of your organization. Are you sitting in a warm, depleted surface layer? Is your company stratified into silos that never mix? Or are you allowing the winds of the market to push your old ideas aside so that the deep, nutrient-rich reality of your business can rise to the surface? The answers to these questions will determine the long term productivity and health of what you are building.