Company-wide processes like annual planning often become bland and unopinionated to appease all stakeholders and avoid criticism. In contrast, companies with strong cultures often have opinionated leaders who champion specific, quirky rituals, which infuses the entire organization with a distinct and effective character.
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Identifying a company's stated values is insufficient. WCM's research evolved to analyze the social mechanisms that reinforce desired behaviors, turning values into a "cult." They found that many companies espouse the same behaviors, but only the best have the rituals and systems to make them stick.
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.
Instead of aiming for vague outcomes like "empowerment," start by defining the specific, observable behaviors you want to see. For example, what does "being data-driven" actually look like day-to-day? This focus allows you to diagnose and remove concrete barriers related to competency, accessibility, or social reinforcement.
The CDO argues that one-size-fits-all structures are ineffective. He believes management's true job is to thoughtfully and dynamically create the right rituals, structures, and processes for each unique combination of problem, people, and timeline, rather than forcing teams into a pre-defined box.
Mandating new processes, like reducing meetings, is ineffective if the collective beliefs driving old behaviors (e.g., lack of trust) are not addressed. To make change stick, leaders must first surface, discuss, and realign the team's shared assumptions to support the new structure.
Instead of starting from a textbook, WCM developed its effective culture by identifying the negative traits of its original founder's regime—control, opacity, and stinginess—and deliberately doing the opposite. This 'inversion' method provides a powerful, practical template for cultural transformation.
Contrary to the popular bottoms-up startup ethos, a top-down approach is crucial for speed in a large organization. It prevents fragmentation that arises from hundreds of teams pursuing separate initiatives, aligning everyone towards unified missions for faster, more coherent progress.
The common practice of hiring for "culture fit" creates homogenous teams that stifle creativity and produce the same results. To innovate, actively recruit people who challenge the status quo and think differently. A "culture mismatch" introduces the friction necessary for breakthrough ideas.
Leaders readily design tangible elements like incentives, job ladders, and meeting agendas. However, they often feel uncomfortable with the idea of intentionally designing the overall "process" or "environment," fearing it's overly controlling or manipulative, despite it being a logical extension of their other design activities.
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.