What You Do Is Who You Are cover

What You Do Is Who You Are - Book Summary

How to Create Your Business Culture

Duration: 36:11
Release Date: March 6, 2024
Book Author: Ben Horowitz
Category: Corporate Culture
Duration: 36:11
Release Date: March 6, 2024
Book Author: Ben Horowitz
Category: Corporate Culture

In this episode of 20 Minute Books, we're diving into "What You Do Is Who You Are" by Ben Horowitz. Published in 2019, this insightful work by the venture capitalist and management expert challenges conventional notions of business culture. Horowitz uses a blend of contemporary examples and historical narratives involving figures like Genghis Khan and the samurai to deliver riveting advice on crafting a company culture that truly aligns with your business's values and goals.

Ben Horowitz is not just any author; he's a New York Times best-selling author known for "The Hard Thing About Hard Things." As a co-founder of the prestigious venture capital firm Andreessen Horowitz, and the former president and CEO of Opsware, which Hewlett-Packard acquired for one point six billion dollars in 2007, his expertise in the business world is unparalleled.

This book is a must-read for CEOs, company founders, aspiring entrepreneurs, and those looking to cultivate an exceptional workplace culture. Dive in with us as we explore how Horowitz's unique perspectives on culture can reshape the way you think about leadership and the essence of your actions within a business environment.

Unlocking the Secrets of Thriving Business Cultures

In the realm of business, the atmosphere and ethos in which a team operates can be critical to its success. This intangible blend of values, behaviors, and practices that make up the workplace culture isn't just a modern-day business buzzword; it's a decisive element that can drive a company towards its peak or into the ground. Yet, for all its importance, sculpting the perfect business culture feels like navigating a labyrinth without a map. If only there were some time-tested insights to guide us on this journey. Spoiler alert: there are.

Delving into the annals of history and drawing parallels to present-day corporate giants like Amazon, we uncover that the art of cultivating a powerful and positive culture isn't confined to the boardroom or the modern epoch. The essence of creating an environment that breeds success transcends time, from the deserts of 12th-century Mongolia to the unlikely setting of a Michigan prison. These narratives aren't just stories; they are beacon lights illuminating the path to creating a vibrant culture in our businesses.

Imagine applying the ancient samurai code of bushido — with its emphasis on loyalty, honor, and discipline — to the framework of a contemporary start-up. This might seem like a juxtaposition of worlds apart, yet the core principles of such a warrior code can inject a formidable ethos into the heart of modern business operations, ensuring that actions at all levels are aligned with the company's overarching values.

Then, there's the tale of Genghis Khan, a figure not typically associated with corporate strategy, who revolutionized not just the Mongol Empire, but arguably set early precedents for leadership and organizational culture that can still resonate today. His ability to unify various tribes under one banner echoes the challenge modern leaders face in fostering a cohesive and motivated team in diverse and oftentimes dispersed organizations. Genghis Khan's story offers a striking example of leadership that is as relevant to the CEO of Frontier Communications as it is to any leader striving to meld individuals into a unified, purpose-driven entity.

But how do these historical anecdotes translate into actionable strategies for today's business leaders? The crux lies in understanding that the essence of any company's culture is a reflection of its leaders and their decisions. These choices, whether they pertain to how conflicts are resolved, successes celebrated, or failures analyzed, sculpt the living, breathing culture of the organization. The process requires deliberate thought and consistent action, rooted in the understanding that the "perfect culture" is not a one-size-fits-all solution but a tailored fit that encapsulates the unique identity and aspirations of the company.

As we navigate through these lessons from history and their modern counterparts, we find that at the heart of creating an impactful business culture is the recognition of its power to influence, shape, and driven organizations towards their zenith. The journey to crafting this environment is both an art and a science — requiring a mix of historical wisdom, contemporary insights, and the courage to forge a path that resonates deeply with the values and vision of the company. Let's embark on this exploration, understanding that the blueprint for a thriving business culture might just lie in the legacies of the past and their application to our present endeavors.

The Secret Ingredient of Success: A Unique Company Culture

In the bustling world of business, the term "culture" often crops up in conversations, hailed as the linchpin of corporate triumph. Yet, pinning down its essence can be as slippery as catching smoke. It's one of those concepts that everyone agrees is vital but articulating its meaning? That's where the clarity often fades into ambiguity.

So, let's debunk some myths first. For starters, culture is not synonymous with a company's stated values, which tend to be more aspirational in nature. Similarly, mistaking the CEO's personality for company culture is like believing a single spice can define the whole recipe—it's a critical ingredient, sure, but not the entirety of the dish.

Imagine placing Apple and Amazon side by side. The contrast in their cultures is stark. Apple, with its almost zealous commitment to quality, erected a headquarters worth five billion dollars, while Amazon's legendary frugality makes such an expenditure inconceivable. This variance underscores a profound truth: culture is the embodiment of a company's ethos and operating principles, and it's as unique as a fingerprint.

Delving into the annals of tech history, Bob Noyce, the co-founder of Intel, emerges as a pioneer of culture creation. In the fledgling tech landscape of 1968, where engineers were the vanguards of innovation, Noyce envisioned a workplace culture that was nothing short of revolutionary. Rejecting the hierarchical norms, he introduced an egalitarian framework where the absence of vice presidents and the distribution of stock options were the order of the day. He championed an open environment, literally breaking down walls to foster a space where ideas could cross-pollinate freely. His "Intel Culture" sessions weren't mere talks; they were the crucible in which a culture that would later define Silicon Valley was forged.

However, it's crucial to remember that a sterling culture is not a magical elixir guaranteeing success, nor does a flawed culture condemn a company to failure. To draw a parallel from the sports world, a supremely talented athlete might reach great heights despite suboptimal training regimens. Yet, refining their training and diet can significantly enhance their performance. Similarly, culture is the regimen that amplifies a company's potential, steering it towards achieving its zenith.

As we explore enlightening narratives stretching from Genghis Khan to modern business moguls, it becomes evident that culture isn't a monolithic concept but a kaleidoscopic phenomenon, shaped by the unique contours of each organization. The journey to defining and cultivating your company's culture isn't one that can be outsourced or imitated — it is inherently personal and bespoke. Like a masterful composer, the nuances and rhythms of your company's culture must be orchestrated with a keen understanding that it is, unequivocally, your masterpiece.

Leading by Example: The Timeless Lessons of Toussaint Louverture

In a chapter of history not typically revisited for corporate strategy lessons, the narrative of Toussaint Louverture, the liberator of Haiti, unfolds, offering profound insights on leadership and culture building. Born into the grim reality of slavery in 1743 on the island then known as Saint Domingue, Louverture rose from captivity to command an insurrection that would forever alter the course of his nation's history. His journey from slave to the leader who abolished slavery in 1801 under his governance is not just a story of political triumph but a masterclass in imbibing cultural virtues.

Louverture's leadership brilliance shone not just in his tactical military maneuvers against Spanish and British forces but in his visionary approach to embedding a strong set of values within his army. His method? Implementing shockingly unconventional rules that forced his soldiers to reevaluate their norms and embrace essential virtues like trust. Case in point: his rule against married officers having concubines. This departure from the norm wasn't merely about morality; it was a bold statement on reliability and trustworthiness — if an officer could not be loyal to his partner, how could he be relied upon by his comrades?

This principle extended beyond personal conduct to strategic decisions that defined the new Haiti. Faced with the temptation of vengeance against former plantation owners, Louverture chose economic stability and prosperity over retribution. By allowing these ex-slave owners to live and leverage their agricultural expertise, he emphasized the paramount importance of the island's economic resurgence. This prioritization of collective prosperity over personal vendettas illuminated Louverture's cultural emphasis on forward-looking pragmatism and resilience.

The transferability of Louverture's leadership and cultural strategies to the modern business environment is encapsulated in two contemporary examples: Amazon and Netflix. Amazon's embodiment of frugality in its early practice of fashioning employee desks from cheap doors is a vivid illustration of how cultural values can be ingrained in everyday practices, transforming resourcefulness from a concept into a tangible daily reminder.

Similarly, Netflix's strategic pivot from DVD rentals to streaming under Reed Hastings' direction showcases the boldness of Louverture-esque decision-making. By excluding DVD executives from strategic meetings, Hastings sent an unambiguous message about the company's new direction, emphasizing adaptability and forward-thinking as cultural cornerstones.

Through Louverture’s historical narrative and its echoes in today's corporate halls, a timeless lesson emerges: the culture of an organization or movement is defined by the decisions of its leaders, and the impact of those decisions is amplified when they challenge the status quo to encapsulate key virtues. Louverture's legacy demonstrates that leadership is not just about making decisions in the present; it's about weaving the cultural fabric that will guide and nourish the organization long into the future.

Embrace the Samurai Spirit for Business Resilience

The samurai of ancient Japan upheld a culture of discipline and virtues known as bushido, which echoes through the corridors of time, finding its relevance even in the contemporary business landscape. This isn't about adopting a rigid set of principles but about embodying a culture of action-focused virtues. It's the difference between posting aspirational values on a wall and living out the virtues that truly define an organization.

At the heart of the samurai ethos lies a somewhat morbid yet profoundly empowering rule: constantly contemplate mortality. The idea isn't to dwell in despair but to harness this awareness as a clarifying force. In the volatile realm of business, this translates to acknowledging the stark realities of potential failure, from bankruptcy to being bested by competitors. Embracing these possibilities frees one from fear, redirecting focus towards what genuinely matters — creating a meaningful workplace and exceptional products.

Bushido also extols the virtues of honor, politeness, and sincerity — three pillars that can significantly influence corporate culture. These are not just abstract concepts; they have tangible applications that can elevate a company. For instance, when Marc Andreessen and I established the venture capital firm Andreessen Horowitz, we recognized the critical role entrepreneurs would play in our success. Drawing inspiration from the samurai, we declared unwavering respect for entrepreneurs as a core corporate virtue, to the extent that public criticism of an entrepreneur within our fold was considered a dismissible offense.

However, this deep-seated respect didn't equate to coddling. Echoing the samurai's sincerity, we committed to delivering the truth, no matter how uncomfortable. These conversations, imbued with the requisite politeness, echoed the balanced approach of samurai communication — candid yet considerate.

The ethos of bushido teaches that the justification behind performing good deeds pales in comparison to the significance of the actions themselves. In the turbulent waters of business, motivations may vary, but it's the righteousness and impact of our actions that truly define us and our organizations.

Embarking on this samurai-inspired journey, if today were the day you faced the ultimate failure, whether in life or in the collapse of a venture, maintaining this disciplined, virtue-driven approach ensures that you can reflect on your endeavors with pride, just as a samurai would. This cultural mindset not only champions ethical conduct but cultivates an environment of resilience, critical reflection, and above all, purposeful action. Adopting such a spirit in business not only fosters a dignified corporate culture but lays the groundwork for lasting success and fulfillment.

Transformative Leadership: Shaka Senghor's Journey from Incarceration to Inspiration

Shaka Senghor's life arc, from a convicted murderer at 19 to a best-selling author and herald of change, encapsulates a remarkable tale of transformation and visionary leadership. His experiences offer profound insights into cultural reshaping within any group or organization, a narrative that holds valuable lessons for the business world.

During his incarceration, Senghor found himself at the helm of the Melanics, a gang that, despite having a set of guiding principles, failed to live up to them. Senghor's initial disillusionment with the gang's practices laid the groundwork for his ascent to leadership. By challenging the existing leadership over their unethical practices and invoking the gang's moral code, he sparked a reevaluation of what it meant to lead and belong to the Melanics. His persistent questioning and emphasis on leading by example not only elevated him within the gang but also initiated a cultural pivot towards genuine adherence to their principles.

Senghor's unwavering commitment to change initiated a paradigm shift within the Melanics. Through structured communal activities — eating, exercising, and studying together — and regular meetings, he steered the gang away from violence, fostering a culture centered on ethical living and mutual respect. This approach underscores the power of consistent engagement and dialogue in driving cultural transformation.

Another pivotal insight from Senghor's journey is the significance of viewing a group's culture through the lens of a newcomer. His early encounter with violence in the prison system profoundly impacted his perspective, highlighting how initial experiences can shape one’s understanding and integration within a culture. For business leaders, this emphasizes the importance of directly engaging with new members to ensure that the organizational culture is cultivated and perceived as intended.

Senghor's narrative also champions the principle of congruence between one's actions and declared values. A compelling instance of this in the business arena is the author's own experience as CEO of LoudCloud. Faced with the temptation to obscure a quarter's lackluster performance, he was reminded that trustworthiness — above mere legal compliance — was a cornerstone of the company's ethos. This realization reinforced the crucial lesson that foundational values must be lived out, not just espoused, a principle that Senghor embodied through his transformative leadership.

Shaka Senghor's journey from the confines of a prison cell to becoming a beacon of hope and change demonstrates that leadership, at its core, is about authenticity, relentless pursuit of transformation, and the courage to "walk the talk." Whether within the microcosm of a prison gang or the sprawling dynamics of a corporate entity, the essence of leadership remains steadfast: the power to inspire and enact meaningful change is rooted in the alignment of actions with core values.

The Genghis Khan Approach to Fostering Inclusion and Loyalty in Business

In the annals of history, Genghis Khan is remembered not only for his conquests but for his revolutionary approach to leadership, one that emphasizes the critical role of inclusion and loyalty. Born into marginalization in 1162, Khan's rise to the zenith of Mongol power is a testament to his ability to unite fiercely independent tribes under a single banner through shared objectives and meritocratic principles.

Khan's military campaigns were underpinned by a profound realization: for a culture to thrive, every member must feel integrated, valued, and aligned toward common goals. This ethos extended beyond the battlefield; it defined his governance. By abolishing inherited titles, Khan rooted his empire in meritocracy, where skill and dedication trumped birthright. Loyalty, a virtue he held in the highest regard, became the glue binding his rapidly expanding dominions. This was illustrated starkly when he executed those of his rival's men who betrayed their leader, despite benefiting Khan, marking disloyalty as a cardinal sin.

His strategy of integrating conquered peoples, such as the Uighur, by leveraging their talents and encouraging intermarriage among tribes, not only broadened the cultural fabric of the Mongol Empire but fortified it through diversity and unity.

These ancient principles of inclusion and loyalty hold profound relevance for the modern corporate world. The transformation initiated by Maggie Wilderotter at Frontier Communications in 2004 exemplifies this. Confronted with a rigid class divide within the company, she dismantled hierarchical barriers, bringing equity and unity by realigning policies to favor inclusivity and valuing loyalty above tenure or title. Much like Khan, Wilderotter understood that solidarity among employees — demanding loyalty to the company by using its products — was paramount, a principle she enforced with decisive action against non-compliance.

Drawing inspiration from Khan's playbook, my approach to hiring at my company sought to mirror this level of inclusivity. By adopting a recruitment process that welcomed diverse perspectives, we achieved a workforce reflective of the broader society — 50 percent female, significant Asian and African American representation — thereby enriching our company culture with a multitude of experiences and viewpoints. This was our version of integrating the best from the "conquered tribes," ensuring that the organizational culture benefited from a broad spectrum of insights and capabilities.

Genghis Khan's legacy teaches us that the strength of an entity, be it an ancient empire or a contemporary corporation, lies in its ability to foster a culture of inclusion and loyalty. His strategies, focusing on merit, embracing diversity, and uncompromising loyalty, provide a blueprint for building cohesive, resilient, and successful organizations. In a world that increasingly values diversity and unity, Khan's methods are not just historical anecdotes but actionable strategies for cultivating a vibrant, inclusive corporate culture.

Forging Your Unique Business Culture: Authenticity as the Foundation

Embarking on the quest to define the ideal culture for your business might feel like setting sail without a compass — exciting yet daunting. Learning from the towering figures of history and modern business mavens, from Toussaint Louverture to the ethos of Amazon, offers invaluable insights. Yet, the essence of crafting a culture that propels your business to success lies in the profound yet simple act of being authentic to oneself.

Authenticity isn't just a buzzword or a feel-good strategy; it's the cornerstone of any thriving corporate culture. This begins with a deep, introspective understanding of your strengths and weaknesses. Take my experience, for instance. My penchant for lengthy discussions wasn't exactly conducive to the fast-paced environment of the software company I led. Recognizing this, I consciously surrounded myself with team members who were more succinct, ensuring my preference for extended dialogues didn't shape our company's communication style.

Similarly, your positive traits should seep into the very bedrock of your company's culture. Consider Twitter's CEO, Dick Costolo, whose legendary work ethic not only defined his leadership but also helped reshape the company culture. By personally demonstrating the value of commitment — returning to the office post-dinner to engage with late workers — he reinforced hard work and dedication as core cultural attributes.

Yet, aligning culture with strategy is equally vital. Your cultural pillars should not only reflect your persona but also bolster your business objectives. The "Move fast and break things" mantra served Facebook well in its nascent stage of rapid innovation but would hardly suit the precision and caution paramount to an aeronautic giant like Airbus.

Identifying the virtues that should characterize your culture is a nuanced process, deeply personal yet universally bound by a few vital principles. Ensure your virtues are actionable, much like the bushido code of the samurai, translating ideals into tangible practices. Your hiring process should meticulously seek individuals who not only possess the necessary skills but inherently embody these virtues. Moreover, while striving for uniqueness in your chosen virtues can set you apart, they must fundamentally interlace with and amplify your strategic vision.

In the grand tapestry of successful business cultures, the virtues you espouse are crucial, but the context in which they are practiced, their reflection of leadership authenticity, and their alignment with business objectives are what truly distinguish the remarkable from the mundane. Cultivating a culture is not about emulating the illustrious or adopting the trendiest practices; it's about forging a path that's distinctively yours, grounded in genuine self-expression and strategic congruence. Through this lens of authenticity and strategic alignment, the cultural ethos of your business emerges not merely as a backdrop but as a protagonist in your company's story of success.

Adapting Leadership: The Art of Decision-Making and Cultural Transformation

In the dynamic theater of business, the ability to recalibrate one's cultural compass in response to emerging challenges is not just an attribute of good leadership—it's a necessity. The fluid nature of markets demands leaders who are not only decisive but also adaptable, able to discern when a cherished cultural virtue becomes a liability and brave enough to steer the organizational culture in a new direction.

Consider the lesson from the saga of Research In Motion, the makers of BlackBerry. Here was a company that successfully built its reputation on delivering products with unrivaled battery life and keyboard functionality, prioritizing these features as a proxy for customer satisfaction. However, when faced with the advent of Apple's iPhone—a device that initially lagged in these areas—RIM remained anchored to its convictions, underestimating the iPhone's appeal. This oversight underscored a critical lapse in adaptability, illustrating how rigid adherence to a once-successful formula can precipitate decline rather than deter it.

For businesses, the message is clear: vigilance and the willingness to evolve are paramount. Sometimes, dramatic gestures or "object lessons" may serve as powerful catalysts for cultural recalibration, demonstrating to the entire organization that certain principles—such as legal compliance and ethical conduct—are non-negotiable, even if it means making tough decisions like severing ties with those who transgress these values, regardless of their direct involvement.

Leadership, especially in the context of decision-making, is an art that balances empowerment with assertion. Allowing team members to contribute ideas fosters a culture of inclusivity and collaboration, but ultimately, the decisive act rests with the leader. Furthermore, the tempo of decision-making is crucial; while agility can be advantageous, some scenarios—like investment decisions in venture capital—demand a more deliberate, contemplative approach to unravel the complexities at play.

The distinction between a "wartime" and a "peacetime" CEO encapsulates another facet of adaptable leadership. In times of aggressive competition or crisis, a wartime CEO prioritizes swift, bold actions over protocol to secure victory. In contrast, a peacetime CEO emphasizes steady growth, innovation, and adherence to established protocols for long-term success. Transitioning between these states is challenging and may necessitate altering the leadership team to align with the company's evolving phase and strategic objectives, as demonstrated by Apple's seamless transition from the combative leadership of Steve Jobs to Tim Cook's more measured stewardship.

In essence, the journey through business landscapes, whether tumultuous or tranquil, demands a leader adept at navigating the delicate balance between steadfastness and flexibility. It's through this dynamic interplay of decision-making and cultural realignment that leaders can mold an organization capable of thriving amidst change, forging a culture that is robust, responsive, and resilient.

Cultivating the Pillars of Trust and Loyalty in Your Company

While each organization's cultural mosaic is as distinct as its mission and identity, certain virtues stand tall, transcending the bounds of time, geography, and industry. Trust and loyalty emerge as these cardinal virtues, uniting empires of old with today's digital giants in a common pursuit of cohesion, resilience, and excellence.

Trust serves as the bedrock of any successful organization. It's an intricate dance of confidence and vulnerability between leaders and their teams, enabling the open exchange of triumphs and trials alike. A leader's capability to share challenging news — such as the necessity of layoffs — without eroding the team's morale or respect underscores the quintessence of trust. This virtue was exemplified by Abraham Lincoln during the Gettysburg Address, where he navigated the nation through its darkest hour by acknowledging the immense sacrifices made, while also reiterating the profound purpose of their struggle. In the realm of business, this translates to cultivating an environment where transparency prevails, encouraging employees to relay the good, the bad, and the ugly, thus allowing for constructive problem-solving and growth. A culture embedded with trust dissuades the blame game, focusing instead on actionable solutions and learning.

Loyalty, the other pillar, is not about unwavering allegiance to a fault but a mutual respect and understanding between the employer and the employed. It's about creating an atmosphere where employees feel genuinely valued, seen, and heard. This involves honest conversations, showing consistent interest in individual and collective well-being, and acknowledging that the trajectory of careers can lead outside the organization. Remember, employees are more likely to part ways with a manager than the company itself — highlighting the impact of personal connections and trust in fostering loyalty.

While it's true that the specific virtues espoused by a company should mirror its unique character and aspirations, trust and loyalty are the universal threads that should weave through the fabric of every organization's culture. They are not merely ideals to aspire to but practices to embody in daily interactions and decisions. From the strategic heights of executive decisions down to the everyday exchanges between colleagues, trust and loyalty not only distinguish a company but also define it.

In synthesizing these insights — from aligning your culture to your authentic self to implementing practices that vividly showcase your values — the path to developing a vibrant, sustainable workplace culture becomes clearer. These are not static virtues to be checked off but dynamic forces to be nurtured over time. By placing trust and loyalty at the core of your organizational culture, you set the stage for a company that is not only resilient in the face of adversity but is also poised for enduring success.

Crafting the Heartbeat of Your Business: Culture Beyond Words

The soul of any successful business lies not in the grandeur of its mission statement but in the lived experiences and actions that breathe life into its day-to-day operations. This anthology of insights reveals that the most enduring and transformative cultures are those instilled with virtues that transcend mere intentionality, morphing into actionable principles that guide both leadership and teams.

At the core of this wisdom is the understanding that the essence of a company — its character, resilience, and legacy — is manifested through the actions taken and the decisions made. From ancient empires led by visionaries like Genghis Khan to modern tech giants steered by innovative CEOs, the thread binding these entities is a culture rooted in pragmatism and defined by deeds.

The cornerstone of such a culture lies in authenticity and adaption, emphasizing that the most effective cultures are those that are true to the leaders' intrinsic characteristics, yet flexible enough to evolve with changing landscapes. This duality is exemplified by leaders who, recognizing their limitations, surround themselves with diverse talents that complement and enhance the organization's collective strengths.

Moreover, the narratives underscore that trust and loyalty are the universal pillars upon which every successful culture stands. These virtues go beyond surface-level engagement, establishing a foundation of mutual respect, transparency, and genuine investment in the personal and professional growth of every team member.

In essence, the journey to building and nurturing a vibrant business culture is an ongoing quest for alignment — between actions and aspirations, between leadership and teams, and ultimately, between the organization and its evolving mission. It's a reminder that in the grand tapestry of business success, culture is not just a backdrop but the very fabric that holds together the vision, values, and virtues of an enterprise, making it truly exceptional.

So, as we venture forth in the creation or transformation of our businesses, let us embrace a culture of action, grounded in the realities of execution and illuminated by the ethos of authenticity, trust, and loyalty. For in the end, it's not merely what we aspire to be but what we do that defines the enduring legacy of our endeavors.

What You Do Is Who You Are Quotes by Ben Horowitz

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