Every A16Z employee must sign a culture document and attend a training session committing them to be 'dream builders.' This enforces a principle of supporting anyone pushing the world forward, regardless of investment status, preventing a culture of cynical criticism.
Most corporate values statements (e.g., "integrity") are unactionable and don't change internal culture. Effective leaders codify specific, observable behaviors—the "how" of working together. This makes unspoken expectations explicit and creates a clear standard for accountability that a vague value never could.
To make culture tangible, create memorable rules with "shock value." At A16Z, being late for a meeting with an entrepreneur costs a partner $10 per minute. This financial penalty makes the abstract value of "respecting founders' time" an unforgettable and enforceable daily practice.
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.
Create a public document detailing your company's operating principles—from Slack usage to coding standards. This "operating system" makes cultural norms explicit, prevents recurring debates, and allows potential hires to self-select based on alignment, saving time and reducing friction as you scale.
Beyond tactical advice, a subtle but crucial YC teaching is the importance of being helpful to the community. The culture, reinforced by practices like "shout outs" for helpful batchmates, ingrains the idea that success is tied to being relentlessly resourceful for others, not just for oneself.
Culture isn't an abstract value statement. It's the sum of concrete behaviors you enforce, like fining partners for being late to meetings. These specific actions, not words, define your organization's true character and priorities.
The power dynamic in venture capital can easily lead to arrogance. To counteract this, a16z implemented a daily ritual—a fine for being late to founder meetings. This constantly reinforces respect for the entrepreneur's time and prevents negative cultural drift.
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.
Instead of vague values, define culture as a concrete set of "if-then" statements that govern reinforcement (e.g., "IF you are on time, THEN you are respected"). This turns an abstract concept into an operational system that can be explicitly taught, managed, and improved across the organization.
To prevent values from being just words on a wall, create a running list of specific, concrete anecdotes where employees demonstrated a value in action. This makes the culture tangible, tracks adoption, highlights who is truly living the values, and provides a clear model for others to follow.