What You Do Is Who You Are: An expert guide to building your company’s culture
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Horowitz roots his own definition of innovation in the deliberate choices he makes to center the leadership stories of present, past, and long past people of color far outside the C-suite or open floor plans of today’s tech giants. They include Toussaint Louverture, the genius behind the only successful slave rebellion in the history of the western hemisphere, the Haitian Revolution of the late-eighteenth/early-nineteenth century; the samurai of Japan, whose bushido code elevated virtues above values; Genghis Khan, the ultimate outsider who led one of history’s most dominant armies by ...more
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To really understand how this stuff works, I knew I had to dig deeper. So I asked myself, How many of the following questions can be resolved by turning to your corporate goals or mission statement? Is that phone call so important I need to return it today, or can it wait till tomorrow? Can I ask for a raise before my annual review? Is the quality of this document good enough or should I keep working on it? Do I have to be on time for that meeting? Should I stay at the Four Seasons or the Red Roof Inn? When I negotiate this contract, what’s more important: the price or the partnership? Should ...more
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Because your culture is how your company makes decisions when you’re not there. It’s the set of assumptions your employees use to resolve the problems they face every day. It’s how they behave when no one is looking. If you don’t methodically set your culture, then two-thirds of it will end up being accidental, and the rest will be a mistake.
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Culture is not like a mission statement; you can’t just set it up and have it last forever. There’s a saying in the military that if you see something below standard and do nothing, then you’ve set a new standard. This is also true of culture—if you see something off-culture and ignore it, you’ve created a new culture.
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Fairchild Camera, based in New York City, did business the east coast way, which had become the way big businesses across the country conducted themselves. Fairchild’s owner, Sherman Fairchild, lived in a glass-and-marble town house in Manhattan. His top executives got cars and drivers and reserved parking places. As Tom Wolfe observed in his 1983 Esquire story “The Tinkerings of Robert Noyce,” “Corporations in the East adopted a feudal approach to organization, without even being aware of it. There were kings and lords, and there were vassals, soldiers, yeomen, and serfs.” Bob Noyce didn’t ...more
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if Silicon Valley is about anything, it’s about the primacy of the idea. Breakthrough ideas have traditionally been difficult to manage for two reasons: 1) innovative ideas fail far more than they succeed, and 2) innovative ideas are always controversial before they succeed. If everyone could instantly understand them, they wouldn’t be innovative.
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Wikipedia was considered a joke when it started. How could something written by a crowd replace the work of the world’s top scholars? Today it is so much more comprehensive than anything that came before it that it’s widely considered the only encyclopedia.
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Critics love to attack companies for having a “broken culture” or being “morally corrupt,” but it’s actually a minor miracle if a culture isn’t dysfunctional. No large organization ever gets anywhere near 100 percent compliance on every value, but some do much better than others. Our aim here is to be better, not perfect.
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Vincent de Vaublanc, a white deputy from Saint-Domingue, warned the French Parliament that the colony had fallen under the control of “ignorant and brutish negroes.” Vaublanc’s speech had a tremendous impact, and there were rumors of a counterrevolution being plotted in Paris. Louverture’s response was to publish a justification of the Haitian Revolution that laid out his theory of race and culture. As Philippe Girard wrote, “One by one he listed Vaublanc’s accusations; one by one he took them apart. Blacks were not lazy and ignorant savages: slavery had made them so. Some violence had indeed ...more
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He used two preexisting cultural strengths to great effect. The first was the songs the slaves sang at their midnight celebrations of voodoo. Louverture was a devout Catholic who would later outlaw voodoo—but he was also a pragmatist who used the tools at hand. So he converted this simple, memorable vocal template into an advanced communications technology. The Europeans had no means of long-distance, encrypted communication, but his army did. His soldiers would place themselves in the woods surrounding the enemy, scattered in clumps. They would begin their voodoo songs—which were ...more
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In any human interaction, the required amount of communication is inversely proportional to the level of trust.
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The explanation will be repeated to every new recruit and will embed itself into the cultural fabric. New officers would ask, “Tell me again why I can’t have a concubine?” And be told: “Because in this army, nothing is more important than your word. If we can’t trust you to keep your word to your wife, we definitely can’t trust you to keep your word to us.”
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Once the rebels won control of the island, many of Louverture’s soldiers wanted revenge on the plantation owners. It would have been the course of least resistance for Louverture to order the owners shot out of hand. They would certainly have done the same to him. But he abhorred the spirit of revenge, believing it would destroy rather than elevate the culture. He also had to fund his war against France. If his country went bankrupt, his revolution would fail. Crops were the entire economy of Saint-Domingue: without them, it could never be an important nation. As Louverture declared, “The ...more
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Because Louverture believed in the French Revolution and the freedoms it claimed to embody, he saw Napoleon as an enlightened product of the revolution rather than as the racist he was. In one outburst, Napoleon said: “I will not rest until I have torn the epaulettes off every nigger in the colonies.”
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It must be memorable. If people forget the rule, they forget the culture. It must raise the question “Why?” Your rule should be so bizarre and shocking that everybody who hears it is compelled to ask, “Are you serious?” Its cultural impact must be straightforward. The answer to the “Why?” must clearly explain the cultural concept. People must encounter the rule almost daily. If your incredibly memorable rule applies only to situations people face once a year, it’s irrelevant.
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So Greene came up with a shocking rule: Partnerships should be 49/51, with VMware getting the 49. Did she just tell her team to lose? That definitely begs the question “Why?” Greene said, “I had to give our business development people permission to be good to the partners, because one-sided partnerships would not work.” Her rule was actually met not with resistance but with relief. Her people wanted to create mutually beneficial partnerships, and Greene’s rule gave them permission.
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If you have to talk about something complicated, you want to load the data into people’s brains as quickly as possible so you can have an intelligent, facts-based conversation about the business decision you’re trying to make. So, say you’re meeting to figure out pricing for a new product, you’ve got to talk about the cost structure, how much is fixed, how much is variable, and then there might be three different pricing models, each with pros and cons. That’s a lot of information. Now, you can sit and listen to someone pitch all of this information, but most people don’t have the patience to ...more
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Hastings figured out a way to detect memory leaks in the lab before a program shipped, and in 1991 he started a company called Pure Software to capitalize on his discovery. Its product, Purify, radically improved the way people developed software and was a hit. Yet he had never paid any attention to management or culture and as the head count grew, morale plunged—so much so that he asked his board to replace him as CEO (it refused). Every time Pure had a cultural problem, it aggressively put a process in place to fix it, just as though the company were maximizing semiconductor yield. The side ...more
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The age of streaming was clearly at hand—but how could Hastings make the jump to becoming a global business built around streaming? Obviously he’d have to bundle streaming with DVD to begin with, but what next? Every time he raised this vital topic with his team, trying to hyperleap the company into the future, the conversation reverted to optimizing the DVD service. Hastings made a hard decision to demonstrate his priorities. He kicked all the executives who ran the DVD business out of his weekly management meeting. “That was one of the most painful moments in building the company,” he said ...more
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But there was a flaw in the plan. Two-factor authentication was required on everyone’s work email. The phishing attack was sent to Podesta’s personal email. Now, what past behavior could possibly have given Podesta the idea that he could send and receive tons of highly confidential campaign emails from his personal email account? Oh, snap. Not once did Hillary Clinton tell John Podesta, “Don’t take email security seriously.” Not once would she ever have told him that. But Clinton’s actions overrode her intentions. It did not matter that the campaign had taken all the steps necessary to prevent ...more
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When you inevitably take an action that’s inconsistent with your culture, the best fix is to admit it, then move to overcorrect the error. The admission and the self-correction have to be public enough and vehement enough to erase the earlier decision and become the new lesson.
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The next day, I opened the meeting by saying, “Okay, I am the one who drove the last business into a ditch, so why should you trust me this time?” Then I had my management team present every aspect of the business, including the financials—especially the financials, down to every penny we had in the bank and all the debt—and the complete product and business strategy. Full transparency again, after a period of necessary obfuscation. It mostly worked. Of the eighty people who attended the off-site, all but four stayed with the company through our ultimate sale to Hewlett-Packard five years ...more
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Proud Uber employees circulated them widely: Uber Mission Celebrate Cities Meritocracy and Toe-Stepping Principled Confrontation Winning: Champion’s Mindset Let Builders Build Always Be Hustlin’ Customer Obsession Make Big, Bold Bets Make Magic Be an Owner, not a Renter Be Yourself Optimistic Leadership The Best Idea Wins
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Finally, “Do the right thing. Period,” makes the issue seem simple, and therefore trivial. But ethics is not easy; it’s complex. That’s why Louverture spoke to his slave army as though they were philosophers. He needed them to understand that they would have to think deeply about their choices. If you remember one thing, remember that ethics are about hard choices. Do you tell a little white lie to investors or do you lay off a third of the company? Do you get publicly embarrassed by a competitor or do you deceive a customer? Do you deny someone a raise that they need or do you make your ...more
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The samurai, the warrior class of ancient Japan, had a powerful code we call “bushido,” or “the way of the warrior.” This code enabled the samurai to rule Japan from 1186 until 1868—nearly seven hundred years—and their beliefs endured long after their reign. The samurai are the taproot of Japanese culture to this day.
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Bushido looks like a set of principles, but it’s a set of practices. The samurai defined culture as a code of action, a system not of values but of virtues. A value is merely a belief, but a virtue is a belief that you actively pursue or embody. The reason so many efforts to establish “corporate values” are basically worthless is that they emphasize beliefs instead of actions. Culturally, what you believe means nearly nothing. What you do is who you are. Even the samurai oath is oriented toward action: I will never fall behind others in pursuing the way of the warrior. I will always be ready ...more
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Whether your aim is to keep death in mind, to do it for each other, or some analogous formulation, the glue that binds a company culture is that the work must be meaningful for its own sake.
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Other VCs as well as the people covering the industry misinterpreted the virtue and referred to it as “founder friendly,” a massive corruption of the concept that has delivered us a competitive advantage for years. Being “founder friendly” implies that you take the founder’s side even when he is mistaken. This kind of “virtue” helps nobody. In fact, it creates a culture of lies. Any time you decide one group is inherently good or bad regardless of their behavior, you program dishonesty into your organization.
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So what did Barksdale do? He created a piece of lore so memorable it outlived the company itself. At a company all-hands he said: We have three rules here at Netscape. The first rule is if you see a snake, don’t call committees, don’t call your buddies, don’t form a team, don’t get a meeting together, just kill the snake. The second rule is don’t go back and play with dead snakes. Too many people waste too much time on decisions that have already been made. And the third rule of snakes is: all opportunities start out looking like snakes.
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As the company bringing the Internet to life, we faced many snakes. The Internet had no security, so we invented Secure Sockets Layer (SSL). The Internet had no way of maintaining browser state between sessions, so we invented cookies. The Internet couldn’t be programmed easily, so we invented JavaScript. Were these the optimal solutions? Probably not. But those snakes died fast, we never played with them again, and the technologies we created still dominate the Internet.
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One specific incident changed my internal compass. A football player got into a car accident in Detroit. A young lady crashed into him on a bridge. He jumped out of the car like he was going to attack her and she got scared and jumped off the bridge to get away and drowned. It became a big national story. When he was on his way to the joint, all these guys were saying, “We’re going to stab this dude for what he did to the sister.” And I was like, There are probably people’s family members who think that about us. So I end up calling these guys out. And we have a tense-ass yard meeting. I’m ...more
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If you’re a leader, how do you know what your culture is? The question is harder than it sounds. All leaders get surprised by feedback like “Our culture is really harsh” or “We’re arrogant,” but when they try to examine it directly to figure out what’s going on, they fall prey to the Heisenberg Uncertainty Principle of Management. The act of trying to measure your culture changes the result. When you ask your managers, “What is our culture like?” they’re likely to give you a managed answer that tells you what they think you want to hear and doesn’t hint at what they think you absolutely do not ...more
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Cultural orientation is your chance to make clear the culture you want and how you intend to get it. What behaviors will be rewarded? Which ones will be discouraged or severely punished? People’s receptivity when they join, and the lasting impact of first impressions, is why the new-employee process is the most important one to get right. If your company’s process for recruiting, interviewing, orienting, training, and integrating new employees is intentional and systematic, great. If any part of it is accidental, then so is your culture.
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In Genghis Kahn and the Making of the Modern World, Jack Weatherford observes that the experience gave Temujin “the conviction that some people, even those outside his clan, could indeed be trusted as if they were family. In later life, he would judge others primarily by their actions toward him and not according to their kinship bonds, a revolutionary concept in steppe society.” As we shall see, judging others primarily by their actions is also a revolutionary concept in many of today’s corporate cultures.
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Genghis codified many aspects of inclusiveness into law. He outlawed kidnapping women and made it illegal to sell them into marriage (even as his warriors continued to rape and take concubines from among the defeated). He declared all children to be legitimate, thereby eliminating the concept of illegitimate or lesser people. And he introduced, perhaps for the first time anywhere, total religious freedom. While conquered peoples had to swear allegiance to Genghis and had to obey the Mongols’ common law—and while he executed clerics and imams who preached against him—they could otherwise ...more
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As a society, we often ask, “Why do we have so few African-American CEOs of Fortune 500 companies?” And we get answers like “Racism, Jim Crow, slavery, and structural inequality.” Perhaps we should be asking, “How in the world did a black kid from the notorious Chicago housing project Cabrini-Green Gardens become the only African-American CEO of McDonald’s?” If we want to figure out why inclusion hasn’t worked, we ask the former. As we want to figure out how to make inclusion work, we should ask the latter.
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When Wilderotter arrived at Frontier, she told me, “Everybody wanted to show me the org chart, to make sure I understood the pecking order. I didn’t even look at it, because I believe that work gets done through the go-to people. They may not have titles and positions, but they’re the ones who get the work done.”
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you aren’t yourself, even you won’t follow you. A CEO will often hear something like this from a board member: “I don’t think your CFO is as good as the CFOs of other companies whose boards I’m on.” This is an extremely tricky statement to deal with. The CEO doesn’t know those other CFOs, and she can’t interview them and compare. How does she respond? The CEO’s common—and wrong—move is to go tell her CFO to be better in front of the board. She is trying to be what the board member wants, but failing, because she has refused to have a point of view. Her CFO will be confused, because he has no ...more
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As a salesperson, you must know the truth. Does the customer have the necessary budget? Are you ahead of or behind the competition? Who in the target organization is a supporter and who is a detractor? Experienced salespeople like to say, “Buyers are liars.” That’s because, for a variety of reasons, buyers do not volunteer the truth. They may enjoy being wined and dined; they may be using you as a stalking horse to get a better price out of the competition; or they may just have a hard time saying “No.” Like Jack Bauer in 24 interrogating a terrorist, you must extract the truth. In sales, if ...more
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When you ask an engineer a question, her instinct is to answer it with great precision. When you ask a salesperson a question, she’ll try to figure out the question behind the question. If a customer asks, “Do you have feature X?” a good engineer will answer yes or no. A good salesperson will almost never answer that way. She will ask herself, “Why are they asking about that feature? Which competitor has that feature? Hmm, then they must be in the account trying to take my deal. I need more information.” So she’ll reply with something like, “Why do you think feature X is important?” Having ...more
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Smart. It doesn’t mean high IQ (although that’s great), it means disposed toward learning. If there’s a best practice anywhere, adopt it. We want to turn as much as possible into a routine so we can focus on the few things that require human intelligence and creativity. A good interview question for this is: “Tell me about the last significant thing you learned about how to do your job better.” Or you might ask a candidate: “What’s something that you’ve automated? What’s a process you’ve had to tear down at a company?”
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A well-designed cultural interview need not be long. Parametric Technology Corporation (PTC) is a computer-aided-design software company with a legendary sales culture. My head of sales at Opsware, culture-changer Mark Cranney, came from PTC and was always bragging about how good they were at selling. I got annoyed and asked why they were so great. He said, “Well, it started with the interview. I walked into the interview with the senior vice president of sales, John McMahon. He said nothing for what seemed like five minutes, then asked me, ‘What would you do if I punched you in the face right ...more
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A potential large deal with Sony would make or break the quarter. The good news was that the deal was on track. The bad news was that Okta’s sales rep had promised Sony that a feature called on-premise user provisioning—which would allow Sony to put users into the system from within its own buildings—would be delivered in a few months. In fact, Okta didn’t plan to build it for a few years. Sony didn’t require contractual assurance that the feature was just around the corner, but it did want McKinnon’s word. Was the smart thing to do to tell Sony the truth, or was it to save the company? Was ...more
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When we founded Andreessen Horowitz, we made a brand promise that became the basis of our culture. We guaranteed that if you raised money from us, the general partner from our firm who’d sit on your board would be a former founder or CEO of a significant tech company.
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Why would a smart person try to destroy the company he works for? He is disempowered. He feels he can’t access the people in charge, so complaining is his only way to get the truth out. He is fundamentally a rebel. Sometimes these people actually make better CEOs than employees. He is immature and naive. He cannot comprehend that the people running the company do not know every minute detail of its operations. He therefore believes they are complicit in everything that’s broken. It’s very difficult to turn heretics around. Once a heretic takes a public stance, the social pressure to be ...more
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Many managers want to attend executive staff meetings, as it makes them feel needed and it puts them in the know. I made use of this desire by setting a price of admission to the meeting: you had to fess up to at least one thing that was “on fire.” I’d say, “I know, with great certainty, that there are things that are completely broken in our company and I want to know what they are. If you don’t know what they are, then you are of no use to me in this meeting.” This technique got me deluged in bad news, but it also created a culture where surfacing and discussing problems was not just ...more
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