Ben Horowitz asserts that culture isn't a set of ideas like "integrity," but a set of specific, enforced actions. For example, A16z's value of "respecting the entrepreneur" is manifested through strict behavioral rules, such as fining partners for being late to founder meetings to reinforce the principle.
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.
Eloquent mission statements are meaningless if not embodied by leadership's daily actions. A toxic culture of vengeance and blame, driven by the leader, will undermine any stated values. Employees observe how people are actually treated, and that reality defines the culture.
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.
The actual standards of your organization are not set by posters or mission statements, but by the negative behaviors you permit. If you allow chronic tardiness or underperformance to continue without consequence, you are signaling that this is an acceptable standard for the entire team.
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.
Your culture isn't what's on the walls; it's defined by the worst behavior you allow. Firing a high-performing but toxic employee sends a more powerful message about your values than any mission statement. Upholding standards for everyone, especially top talent, is non-negotiable for a strong culture.
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.
Culture isn't about values listed on a wall; it's the sum of daily, observable behaviors. To build a strong culture, leaders must define and enforce specific actions that embody the desired virtues, especially under stress. Abstract ideals are useless without concrete, enforced behaviors.