Early on, Apollo's culture was non-communicative, viewing information as power. As it grew into a public, global firm and entered the highly regulated insurance industry, this became untenable. The firm had to learn to articulate its strategy clearly to align employees and build trust with global regulators.
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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.
Apollo often becomes the largest investor in its own funds, using its retirement services arm and balance sheet. This aligns interests by ensuring the firm experiences the same financial outcomes as its clients, which builds significant trust and demonstrates high conviction.
When Tubulus pivoted its lead program from liquid to solid tumors, the team's ability to change direction instantly stemmed directly from the company's foundational culture of trust. Openly explaining the rationale behind major strategic decisions allows employees to follow and execute without friction, even on a dime.
Apollo's foundational private equity strategy—seeking value, being contrarian, and investing flexibly across the capital structure—was not siloed. This single philosophy of maximizing return per unit of risk now guides every investment decision across their entire platform, including credit and insurance.
Apollo deliberately structures its office with a central floor for food and amenities. This forces "casual collisions"—unplanned interactions between employees from different teams—which is crucial for collaboration, innovation, and sustaining a strong culture, especially post-pandemic.
To break down natural information silos in hierarchies, leaders must flip the cultural default from punishing unapproved sharing to demanding proactive oversharing. The new rule is: "You are responsible for informing other people." This creates a shared context that enables decentralized, autonomous decision-making.
Instead of only celebrating wins and analyzing losses, Apollo's leadership instituted "near-miss reviews." They analyze successful investments that could have gone wrong "but for the skin of our teeth." This process uncovers hidden risks and flawed assumptions, strengthening the firm's underwriting for future deals.
To prevent silos, Apollo fosters a culture where employees spend time helping other teams, knowing the favor will be returned. This "flywheel" of mutual assistance is the core driver of their integrated model, cemented by firm-wide incentives like equity for all employees and bonuses tied to firm citizenship.
To combat communication breakdown at scale, Capital Group deliberately disaggregated its equity team into three distinct, firewalled units of about 100 professionals each. This ensures investment discussions remain intimate and effective despite massive firm-wide AUM, forcing them to "stay small."
Effective firms don't necessarily have a universally "good" culture, but they know exactly what their culture is and how people should collaborate within it. This clarity, exemplified by Bridgewater Associates, is a more significant predictor of success than the specific cultural style itself.
