Hey, Nik
Ben Horowitz from a16z wrote a book, "What You Do Is Who You Are," which delves into the critical role of culture in organisations.
Horowitz explores what culture is, why it matters, and how leaders can create and sustain it effectively. Using historical and modern examples, he illustrates that culture is defined by actions, not declarations.
Culture is defined by the daily actions of your team.
It's about the principles and specific rules that guide their everyday decisions. Culture isn't a set of magical rules everyone follows rigidly; rather, it's about embedding desired behaviours in as many team members as possible.
Horowitz's book is structured around cultural analyses of historical figures and groups:
Horowitz examines how history and context influenced these leaders (or groups) to create their cultures. He then translates these principles to modern companies.
Ben uses engaging examples –
The book is filled with vivid examples, such as the reasons behind Hillary Clinton's failed presidential campaign and how Uber's culture led to ethical breaches.
Embrace Imperfections in Culture: No culture is flawless. The most dangerous flaws are those leading to ethical violations. Over-communicating boundaries and ethics rules is crucial. Clarify what your company explicitly does NOT do.
Communicate the "Why": Leaders must explain the reasons behind each rule. Without understanding the "why," rules become just another task on an employee’s list. A meaningful "why" is memorable and drives behavior.
Action-Based Cultural Rules: The Bushido code explains cultural values through actions. For instance, demonstrating dignity involves specific behaviours like bowing or maintaining appearance. Actions are easier to remember and integrate.
Management Uncertainty Principle: Learning about culture impacts culture. Managers often give answers they think their bosses want to hear. The best way to understand culture is by observing what new employees experience in their first weeks and asking for their feedback.
Hiring for Cultural Fit: Amazon uses a "bar raiser" in hiring—a person not from the hiring team who evaluates if the candidate is better than 50% of existing employees in similar roles, aligned with Amazon’s 14 Leadership Principles.
Evolving Rules: In 2014, Mark Zuckerberg replaced “Move fast and break things” with “Move fast with stable infrastructure” after frequent platform crashes caused by third-party applications.
Shocking Rules: Toussaint Louverture’s rule against raping, breaking and robbing (an 18th-century norm) aimed to create surprise and prompt questions. The explanation reinforced trustworthiness in the army. In modern companies, rules should be memorable, provoke "why" questions, and be applicable daily.
Amazon’s Rule Against PowerPoint: Amazon prohibits PowerPoint in meetings. Ariel Kelman, VP at AWS, explains that discussing complex issues is more efficient through written communication, which forces deeper thinking and faster data absorption.
A culture won’t be stable without a leader who follows the principles they promote. If a leader advocates work-life balance but sends emails at 3 AM, the team won't follow the principle. Adhering strictly to cultural rules is challenging, especially when survival necessitates breaking them temporarily.
For example, if sales are declining and major clients are leaving, a CEO might need to break the "be transparent" rule temporarily. By working on a recovery plan without demoralising the team, the CEO can later present a solution when it's ready, ensuring the company's survival.
"What You Do Is Who You Are" by Ben Horowitz is a must-read for product directors, CEOs, and general managers. It highlights that culture is shaped by actions, especially those of leaders. By learning from history and applying these lessons, leaders can build cultures that align with their values and drive organisational success.