To ensure cultural consistency while scaling, A16Z codifies its values in a document that every new hire must sign. This is followed by a personal one-hour briefing from a co-founder, making the culture explicit and non-negotiable from day one.
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.
As a company grows, new hires lack the context of early struggles. To preserve the original culture, formally document and share stories of early failures, pivots, and near-death experiences during onboarding. This reminds everyone of the core principles that led to success.
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.
Values are not just words on a wall; they are an active management system. They should be a filter in the hiring process, a reason for public celebration when embodied, and a non-negotiable standard for performance. A company's true values are defined by the behavior it is willing to tolerate.
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.
To scale from 100 to 1,000+ employees, you must stop interviewing everyone. Success depends entirely on the cultural foundation built with the first 100 people. By personally hiring and imbuing them with the company's core values, you create a group of leaders who can replicate that culture as the organization expands.
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.
Your hiring process is the first expression of your company culture. Implement a rigorous, multi-step screening process (e.g., video submissions, group interviews) to test for coachability and work ethic. This not only filters candidates but also sets a high-performance frame from day one.