Calling a "code red" is a strategic leadership move used to shock the system. Beyond solving an urgent issue, it serves as a loyalty test to identify the most committed team members, build collective confidence through rapid problem-solving, and rally everyone against competitive threats.

Culture isn't about values on a wall; it's about daily habits enforced by memorable rules. Ben Horowitz argues that rules need "shock value," like A16z's policy of fining partners $10 per minute for being late to a founder meeting. This makes the underlying principle—respect—unforgettable and non-negotiable.

The true ROI of a great company culture is operational velocity. Long-tenured employees create a high-context environment where communication is efficient, meetings are shorter, and decisions are faster. This 'shared language' is a competitive advantage that allows you to scale more effectively than companies with high turnover.

Duolingo lives by the mantra, "it's better to have a hole than an a-hole." The company spent 1.5 years searching for a CFO and rejected a candidate who was perfect on paper after discovering he was rude to a driver and a junior employee. This demonstrates a deep, costly commitment to protecting company culture.

Target's '10-4' customer service rule originated at Walmart, which went beyond just stating the rule. Walmart installed a 10-foot-long sticker on the floor as a physical measuring tool for employees. This demonstrates a powerful management principle: turning abstract cultural values into concrete, tangible, and measurable actions in the physical workspace.

At Founders Fund, intense, even loud, disagreements during investment committees are not a sign of a toxic culture, but rather one of deep psychological safety. The partners have such secure relationships that they can engage in "no holds barred, complete truth-seeking" without fear of political repercussions, similar to arguing with a sibling.

Instead of scheduling rigid, three-hour co-founder check-ins that often get canceled, adopt a 'counter-puncher' mindset. Keep important topics top-of-mind and seize spontaneous opportunities—like another meeting getting canceled—to have those crucial conversations. This fluid approach is more effective in a chaotic startup environment.

The host uses a "30/30" rule for her marriage: 30 minutes of play and 30 minutes of intentional conversation. Co-founders can adapt this to build rapport and tackle strategic issues. This structured check-in prevents important, non-urgent conversations from being postponed, ensuring long-term alignment.

A16Z has a zero-tolerance policy: employees who publicly "talk smack" about any entrepreneur—even one not in their portfolio—are fired immediately. This prevents a culture of looking smart by making others look stupid and solidifies their core identity as supporters of innovation, not critics.