Culture isn't created by top-down declarations. It emerges from the informal stories employees share with each other before meetings or at lunch. These narratives establish community norms and create "shared wisdom" that dictates behavior far more effectively than any official communication from leadership.
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.
CEOs provide a curated view of their company's culture. To get an accurate picture, talk to people who have left the organization on good terms for an unfiltered perspective. Also, ask behavioral questions like 'What would you tell a friend to do to be successful here?' to uncover the real cultural DNA.
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 true ROI of a great company culture is operational velocity. Long-tenured employees create a high-context environment where communication is efficient, meetings are shorter, and decisions are faster. This 'shared language' is a competitive advantage that allows you to scale more effectively than companies with high turnover.
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.
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.
A company’s true values aren't in its mission statement, but in its operational systems. Good intentions are meaningless without supporting structures. What an organization truly values is revealed by its compensation systems, promotion decisions, and which behaviors are publicly celebrated and honored.
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.
A residence manager dancing in the rain with an upset student shows how empowering employees to act with spontaneous empathy creates more trust and community than any structured support system. These moments define an organization's true culture.
A major modern leadership challenge is that external narratives, even cartoons, can become self-fulfilling prophecies if employees internalize them. Leaders must actively shape a stronger internal narrative and culture that can resist these "reflexive" social memes.